Dubai CommerCity, the emirate's dedicated free zone for digital commerce, has broken ground on a second expansion phase backed by a Dh1.8 billion ($272.2 million) investment. Run as a joint venture between the Dubai Integrated Economic Zones Authority (Diez) and Wasl Group, the free zone will add more than 91,000 square metres of new office space once the project is complete.
Construction is scheduled to roll out between the first quarter of 2027 and the fourth quarter of 2028, spread across CommerCity's three existing districts: the Business Cluster, the Logistics Cluster and the Social Cluster. Inside the Logistics Cluster, a new facility called The Hive will span 5,600 square metres and offer 181 flexible units, along with climate-controlled fulfilment space and digitally managed loading and unloading bays designed for e-commerce operators.
Diez officials pointed to near-96 per cent occupancy across CommerCity's office, logistics and retail space as the trigger for fast-tracking the expansion. Sheikh Ahmed bin Saeed, Chairman of Diez, said the move "reflects the growing investor confidence in Dubai's economic ecosystem and its ability to attract quality investments."
The expansion is positioned as part of Dubai's D33 economic agenda, which aims to double the size of the emirate's economy to Dh32 trillion by 2033 and place Dubai among the world's top three cities economically. Since its launch, CommerCity has become one of the region's main hubs for e-commerce and logistics firms, and the additional space is expected to significantly widen the free zone's capacity to host new digital businesses in the years ahead.