Dubai CommerCity, a free zone focused on digital commerce, has launched a second expansion phase worth over AED1.8 billion ($490 million) that will add more than 91,000 sq m of office, retail and logistics space across the free zone’s business, social and logistics clusters.
The region's first free zone dedicated to digital commerce, Dubai CommerCity is a joint venture between Dubai Integrated Economic Zones Authority and Dubai developer Wasl.
The expansion, scheduled for delivery between the first quarter of 2027 and the fourth quarter of 2028, comes as demand from e-commerce and technology companies grows.
It builds upon Dubai CommerCity’s continued record levels of demand, with occupancy reaching nearly 96% across its office, logistics, and retail spaces.
This reflects the destination’s growing appeal among digital commerce and technology companies, while underscoring the need to further expand its integrated ecosystem of business facilities, commercial offerings, and specialised logistics services.
The Phase Two will deliver a series of projects across Dubai CommerCity’s three key districts: the Business Cluster, Logistics Cluster, and Social Cluster.
Together, these will add more than 91,000 sqm of new office space, increasing the free zone’s capacity and expanding its integrated ecosystem to serve companies operating in digital commerce and technology.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, said: "Phase Two of Dubai CommerCity comes at a time when Dubai continues to demonstrate its ability to grow and expand despite the changes and challenges facing the global economy."
"This expansion reflects the growing investor confidence in Dubai’s economic ecosystem and its ability to attract high-quality investments while providing an advanced economic infrastructure that responds to rapid shifts in emerging sectors. It aligns with the objectives of the Dubai Economic Agenda, D33, and further strengthens the emirate’s position as a global hub for the digital economy and future commerce, while serving as a platform for companies to grow and expand across regional and international markets," he added
The expansion of the Business Cluster and the Social Cluster will add 86,000 sqm of new space, further enhancing the diversity of options available to companies and expanding the business and services ecosystem within Dubai CommerCity. The Business Cluster includes additional office space across six new buildings, offering companies a range of options, including shell-and-core offices, fully fitted workspaces, and flexible plug-and-play solutions.
These options are designed to meet the needs of companies of different sizes throughout their stages of growth. The buildings are scheduled to be delivered in two phases, with the first beginning in the first quarter of 2027 and the second in the first quarter of 2028.
The Social Cluster is being developed to include spaces dedicated to retail outlets, restaurants, cafés, and services, creating a vibrant destination designed to support Dubai CommerCity’s dynamic business community associated with the digital commerce and technology sectors.
Within the Logistics Cluster, Phase Two will introduce ‘The Hive’, a 5,600 sqm facility that provides an alternative logistics model through its vertical design, which optimises available space while meeting the needs of digital commerce.
The facility will feature 181 flexible units starting from 5 sq m, alongside 24/7 climate-controlled fulfilment areas, digitally managed loading and unloading zones, and dedicated last-mile delivery facilities.
It will also incorporate EV charging stations and renewable energy solutions and has been designed in accordance with leading sustainability standards aligned with LEED certification requirements, seamlessly combining operational excellence with environmental sustainability.
Dr. Mohammed Al Zarooni, Executive Chairman of the Dubai Integrated Economic Zones Authority, and Chairman of the Board of Dubai CommerCity, said: "The second phase of Dubai CommerCity’s expansion represents a strategic step in strengthening Dubai’s position as a leading global hub for digital commerce and technology, while responding to the growing demand from businesses operating across these sectors."
"It reflects Dubai’s continued commitment to translating its economic ambitions into strategic projects and enabling infrastructure that support business growth, strengthen the wider digital economy, and enhance the competitiveness of companies operating from Dubai," he added.-TradeArabia News Service