Dubai CommerCity Unveils AED1.8 Billion Expansion to Catalyse Digital Commerce Growth
The region's premier digital commerce free zone is embarking on an ambitious second phase of development, set to deliver over 91,000 square metres of new facilities across business, logistics and lifestyle districts between 2027 and 2028.
Dubai CommerCity, the Middle East’s flagship free zone dedicated exclusively to digital commerce and a collaborative venture between the Dubai Integrated Economic Zones Authority and Wasl Group, is advancing its strategic expansion with the launch of Phase Two—a transformative development programme representing investments exceeding AED1.8 billion.
The expansion comes at a propitious moment for Dubai’s economic trajectory. Operating at nearly 96 per cent occupancy across its office, logistics and retail facilities, Dubai CommerCity has demonstrated exceptional appeal amongst digital commerce and technology enterprises. This remarkable demand validates the need for substantial additional capacity and reinforces Dubai’s positioning as a premier destination for innovative commerce ventures.
H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, articulated the broader significance of this development, noting that it exemplifies Dubai’s proven capacity to expand and flourish amid evolving global economic conditions. The expansion aligns seamlessly with the Dubai Economic Agenda D33 and reinforces the emirate’s standing as a global epicentre for digital commerce and emerging technologies.
Phase Two will introduce transformative facilities across three integrated districts. The Business Cluster will gain 86,000 square metres of premium office space distributed across six new buildings, offering companies diverse options ranging from shell-and-core facilities to fully fitted workspaces and agile plug-and-play solutions. Delivery is scheduled commencing in the first quarter of 2027, with subsequent phases following in early 2028.
The Social Cluster will evolve into a vibrant mixed-use destination featuring retail, dining and hospitality venues, creating an environment where business operations, networking and lifestyle pursuits converge harmoniously. This integrated approach serves the lifestyle expectations of contemporary digital enterprises and their professionals.
Within the Logistics Cluster, Dubai CommerCity will introduce ‘The Hive’, an innovative 5,600 square metre vertical logistics facility featuring 181 flexible units commencing from five square metres. The facility incorporates 24/7 climate-controlled fulfilment capabilities, digitally optimised loading and unloading systems, and dedicated last-mile delivery infrastructure. Notably, the facility integrates electric vehicle charging stations and renewable energy solutions, aligning with LEED certification standards and embodying a commitment to environmental excellence.
Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, emphasised that this expansion represents a strategic advancement in strengthening Dubai’s global prominence whilst responding to burgeoning demand from businesses operating in digital commerce and technology sectors. The project translates economic vision into tangible infrastructure that cultivates competitive advantage and facilitates cross-border market access.
Recent operational metrics underscore the urgency and validity of this expansion. E-commerce parcel shipments have surged 152 per cent over the past twelve months, whilst cargo volumes through the DCC Way transit platform increased 14 per cent during 2025. These indicators reflect escalating transaction volumes and underline the necessity for sophisticated, technology-enabled operational infrastructure capable of managing amplified cross-border commerce volumes through automation and digitalisation.
Source: WAM