Dubai CommerCity to add 91,000 sqm in Dh1.8 billion expansion

Dubai: Dubai CommerCity is set to add more than 91,000 square metres of new space in a Phase 2 expansion involving investments of more than Dh1.8 billion, as Dubai steps up its push to build its digital economy and trade infrastructure.

The expansion will span three clusters — Business, Logistics and Social — and will be delivered in two phases, with the first scheduled for the first quarter of 2027 and the second targeted for the fourth quarter of 2028, according to project details released alongside the announcement.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Integrated Economic Zones Authority (DIEZ), said the expansion marked a new phase in Dubai CommerCity’s contribution to the digital economy.

“Dubai CommerCity is entering a new phase in its contribution to the growth of the digital economy as it prepares to deliver the second phase of its expansion, adding more than 91,000 sqm of new space with investments exceeding Dh1.8 billion,” Sheikh Ahmed said.

Dubai Media Office said that Phase Two of the expansion 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 square metres (sqm) of new office space. 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," it said.

Digital expansion

Sheikh Ahmed said the investment “reflects growing investor confidence in Dubai and its ability to anticipate the needs of the new economy”.

He said the expansion would “further strengthen the emirate’s position as a global hub for the digital economy and the future of trade”, in line with the objectives of the Dubai Economic Agenda D33.

Dubai CommerCity is the region’s first free zone dedicated exclusively to digital commerce. It is a joint venture between DIEZ and Wasl Properties and provides infrastructure and services aimed at companies operating across the digital commerce value chain.

The free zone includes offices, warehouses and flexible spaces, alongside digital trade and logistics-related services. It was developed as a dedicated environment for digital commerce companies seeking to establish or expand operations in the region.

Growing demand

The expansion comes against a backdrop of strong demand across DIEZ’s economic zones.

DIEZ’s three zones — Dubai Airport Freezone, Dubai Silicon Oasis and Dubai CommerCity — recorded an occupancy rate of 96 per cent in the first half of 2026. The number of companies operating across the zones rose 13 per cent year-on-year, while their combined workforce increased 24 per cent.

That growth has been accompanied by increasing activity in technology and digital businesses. At DIEZ’s Dubai Technology Entrepreneur Campus, new company registrations increased 57 per cent year-on-year in the first half, while registrations of AI-focused companies rose 95 per cent, according to DIEZ.

Investor confidence

Sheikh Ahmed said the second phase of CommerCity’s expansion was a reflection of investor confidence in Dubai.

“This expansion reflects growing investor confidence in Dubai and its ability to anticipate the needs of the new economy,” he said.

He added that the development would strengthen Dubai’s position as a global hub for the digital economy and the future of trade.