Dubai CommerCity Unveils AED 1.8 Billion Expansion to Boost Digital Economy Hub
Dubai CommerCity, the region’s first free zone dedicated to digital commerce, announced an AED 1.8 billion expansion to deliver new office and logistics spaces between Q1 2027 and Q4 2028, driven by high demand.
Dubai CommerCity, a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group, is set to undergo a significant AED 1.8 billion expansion to enhance its position as a global hub for digital commerce. This second phase of development is scheduled for delivery between the first quarter of 2027 and the fourth quarter of 2028, reflecting continued strong demand, with current occupancy rates nearing 96% across its existing facilities.
Expansion Details
The expansion will introduce more than 91,000 square metres of new office space across its three core districts: the Business Cluster, Logistics Cluster, and Social Cluster. This aims to increase the free zone’s capacity and broaden its integrated ecosystem for technology and digital commerce companies.
Business and Social Clusters
An additional 86,000 square metres will be added to the Business and Social Clusters. The Business Cluster will feature six new office buildings, offering a range of options including shell-and-core, fully fitted, and flexible plug-and-play workspaces to cater to companies of varying sizes and growth stages. These buildings are slated for delivery in two phases, starting in Q1 2027 and Q1 2028.
The Social Cluster will be developed with spaces for retail outlets, restaurants, cafes, and services, fostering a dynamic environment that supports the business community with lifestyle amenities.
Logistics Cluster: The Hive
Within the Logistics Cluster, the expansion will introduce ‘The Hive’, a 5,600 square metre facility designed to provide an alternative logistics model. This vertical structure will feature 181 flexible units starting from 5 square metres, along with:
- 24/7 climate-controlled fulfilment areas
- Digitally managed loading and unloading zones
- Dedicated last-mile delivery facilities
- EV charging stations and renewable energy solutions
"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."
‘The Hive’ is designed to meet leading sustainability standards, aligning with LEED certification requirements, combining operational efficiency with environmental responsibility. The initiative aligns with the Dubai Economic Agenda, D33, aiming to further solidify Dubai’s role as a global centre for the digital economy.
Questions, answered
- What is the total investment for Dubai CommerCity's expansion?
- The total investment for the second phase of Dubai CommerCity's expansion exceeds **AED 1.8 billion**.
- When is the expansion expected to be completed?
- The second phase of the expansion is scheduled for delivery between the **first quarter of 2027 and the fourth quarter of 2028**.
- How much new office space will be added?
- The expansion will add more than **91,000 square metres of new office space** across the Business, Logistics, and Social Clusters.
- What is 'The Hive' in the Logistics Cluster?
- 'The Hive' is a 5,600 square metre facility within the Logistics Cluster offering an alternative logistics model with 181 flexible units starting from 5 square metres, climate-controlled fulfilment areas, and dedicated last-mile delivery facilities, designed with sustainability in mind.
- What is the current occupancy rate of Dubai CommerCity?
- Dubai CommerCity currently has an occupancy rate of nearly **96%** across its office, logistics, and retail spaces, indicating high demand.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.
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