Dubai CommerCity Unveils AED 1.8 Billion Expansion to Power Digital Commerce Growth
Second-phase development will add more than 91,000 square metres of space across office, retail and logistics facilities
Dubai CommerCity is moving ahead with a major expansion valued at more than AED 1.8 billion, as demand for digital commerce, technology and logistics infrastructure continues to grow in Dubai.
The expansion is scheduled to be delivered between the first quarter of 2027 and the fourth quarter of 2028, adding new facilities across Dubai CommerCity's Business, Logistics and Social clusters.
Dubai CommerCity is a specialised free zone focused on digital commerce and operates as a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group.
Expansion to deliver more than 91,000 sq m of additional space
The second phase will increase Dubai CommerCity's capacity by more than 91,000 square metres.
The Business and Social clusters will account for approximately 86,000 square metres of the additional space, strengthening the destination's offering for companies operating across digital commerce and technology.
The Business Cluster will receive six new office buildings with different workspace formats, including shell-and-core units, fully fitted offices and flexible plug-and-play facilities.
The new buildings will be completed in two phases, beginning in Q1 2027 and continuing into Q1 2028.
New retail and lifestyle facilities
The Social Cluster will introduce additional space for retail outlets, restaurants, cafés and business services.
The development is intended to create a more integrated environment where companies and employees can combine work, business networking and everyday lifestyle activities within the same destination.
The expansion is designed to make Dubai CommerCity more than a conventional commercial zone by providing a broader ecosystem for businesses operating in the digital economy.
Logistics facility designed for e-commerce
A key part of the expansion will be The Hive, a new 5,600-square-metre facility within the Logistics Cluster.
The vertical logistics concept will include 181 flexible units, with spaces starting from 5 square metres. The facility will also provide climate-controlled fulfilment areas operating around the clock, digitally managed loading and unloading zones and dedicated infrastructure for last-mile deliveries.
The Hive will incorporate electric vehicle charging stations and renewable energy solutions, with its design aligned with sustainability standards associated with LEED certification requirements.
Occupancy approaches 96%
The expansion comes as Dubai CommerCity reports occupancy of nearly 96% across its existing office, logistics and retail spaces.
The high occupancy level reflects increasing demand from digital commerce and technology businesses and has created the need for additional commercial and operational capacity.
The free zone has also recorded strong growth in activity. The number of e-commerce parcels shipped increased by 152% over the past year, while cargo volumes processed through the DCC Way transit platform rose by 14% during 2025.
These figures point to rising demand for technology-enabled infrastructure capable of handling larger volumes of cross-border e-commerce activity.
Expansion supports Dubai's digital economy
The AED 1.8 billion programme is intended to provide companies with greater flexibility as they establish and expand their operations in Dubai.
The additional offices, logistics facilities and supporting services will create more options for businesses at different stages of growth, while strengthening connections between commercial operations, fulfilment and customer services.
Dubai CommerCity officials said the expansion forms part of efforts to strengthen Dubai's role as a global centre for digital commerce and technology and supports the broader objectives of the Dubai Economic Agenda D33.
With the next phase scheduled to roll out from 2027, the development is expected to expand the infrastructure available to companies seeking to operate from Dubai and reach regional and international markets.
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