Dubai to expand CommerCity in push for digital economy growth

Dubai CommerCity (DCC) will undergo a Dh1.8 billion ($272.2 million) second-phase expansion that will be delivered in phases from the first quarter of 2027 through the fourth quarter of 2028, increasing the free zone’s capacity for digital commerce and technology firms. The programme will add more than 91,000 square metres of new office space across three districts — the Business Cluster, Logistics Cluster and Social Cluster — and follows near‑full occupancy across DCC’s office, logistics and retail inventory.

“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,” said Sheikh Ahmed bin Saeed, Chairman of Dubai Integrated Economic Zones Authority (Diez).

Expansion components and facilities

The expansion is a joint venture project between Diez and Wasl Group and will deliver a range of new buildings and logistics facilities aimed at consolidating Dubai’s offer for e‑commerce, fulfilment and tech companies.

• The Business Cluster and Social Cluster expansions will together add about 86,000 square metres of new space, comprising six new office buildings that will include shell‑and‑core offices, fully fitted workspaces and flexible plug‑and‑play solutions.
• The Logistics Cluster will feature The Hive, a 5,600‑square‑metre logistics facility offering 181 flexible units, climate‑controlled fulfilment areas and digitally managed loading and unloading zones designed as an alternative logistics model for digital merchants.
• Overall, the phase two projects will deliver more than 91,000 square metres of new office capacity to serve local, regional and global companies operating in digital commerce and technology sectors.

The expansion is being driven by robust demand inside DCC: the free zone has reached nearly 96 per cent occupancy across its office, logistics and retail spaces, prompting the need for additional integrated infrastructure to accommodate growing tenant interest.

Sheikh Ahmed said the move aligns with the Dubai Economic Agenda, D33, and underlined its role in strengthening the emirate’s position as a global hub for the digital economy and future commerce. Launched in January, D33 aims to double the size of Dubai’s economy — targeting Dh32 trillion by 2033 — and includes programmes to support 30 private companies to reach unicorn status and to accelerate the growth of 400 identified high‑potential private companies.

Outlook

Projected delivery between early 2027 and late 2028 positions DCC’s phase two to capture further inflows of e‑commerce and technology tenants as regional digital trade expands. The combination of new office configurations, plug‑and‑play options and The Hive’s modular logistics units is intended to provide flexible capacity for startups, scaleups and established merchants requiring climate‑controlled fulfilment and digitally managed logistics.

By expanding core infrastructure and increasing leasable space, DCC’s Dh1.8bn investment seeks to convert current high occupancy into growth capacity, while supporting broader economic targets set under D33 and the emirate’s strategy to attract higher‑value, technology‑driven business activity.