Dubai CommerCity Expands Its E-Commerce Infrastructure with an AED 1.8 Billion Investment

Dubai CommerCity is launching the second phase of its expansion with the aim of expanding its e-commerce and digital economy infrastructure. As part of the investment, whose total value exceeds AED 1.8 billion (approximately USD 490 million), more than 91,000 square metres of new space will be created. The project is planned to be completed in phases from the first quarter of 2027 through the fourth quarter of 2028.

An investment exceeding AED 1.8 billion, more than 91,000 square metres of new space, an occupancy rate reaching 96%, a 152% increase in e-commerce parcel volume, and a 14% rise in transit cargo traffic… Dubai CommerCity is preparing to significantly increase its capacity across the digital commerce, technology, logistics, and retail ecosystem with the second phase of its expansion, which will be implemented during the 2027 to 2028 period.

Dubai CommerCity will create more than 91,000 square metres of new space with its Phase Two investment. In the free zone, where e-commerce parcel volume has increased by 152%, digital commerce infrastructure will be expanded with new offices, retail areas, and the 5,600-square-metre next-generation logistics facility “The Hive.”

Preparing to Implement Its Second Phase

Dubai CommerCity (DCC), the region’s first free zone dedicated exclusively to digital commerce and a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group, continues to strengthen its position as an integrated platform supporting the growth of the digital economy and future commerce. In this context, the free zone is preparing to implement the second phase of its expansion project, with total investments exceeding AED 1.8 billion, between the first quarter of 2027 and the fourth quarter of 2028.

Maktoum: This Expansion Reflects Growing Investor Confidence in Dubai’s Economic Ecosystem

Commenting on the expansion, DIEZ Chairman Sheikh Ahmed bin Saeed Al Maktoum 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. Guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the emirate has built a development model founded on resilience, competitiveness, and continuous innovation. This model enables the emirate to anticipate and capitalise on opportunities emerging across the global economy.”

Al Maktoum continued: “This expansion reflects the growing investor confidence in Dubai’s economic ecosystem and the emirate’s ability to attract high-quality investments, while also providing advanced economic infrastructure that responds to rapid shifts in emerging sectors. The project 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 that enables companies to grow and expand across regional and international markets.”

Occupancy Across Office, Logistics, and Retail Spaces Has Reached Nearly 96%

The expansion project is being implemented following record levels of demand for Dubai CommerCity. Occupancy across office, logistics, and retail spaces has reached nearly 96%. This reflects Dubai CommerCity’s growing appeal among digital commerce and technology companies, while highlighting the need to further expand its integrated ecosystem of business facilities, commercial offerings, and specialised logistics services.

As part of Phase Two, a series of projects will be implemented across Dubai CommerCity’s three key districts: the Business Cluster, Logistics Cluster, and Social Cluster. These projects will add more than 91,000 square metres of new office space, increase the free zone’s capacity, and expand its integrated ecosystem serving companies operating in digital commerce and technology.

86,000 Square Metres of New Space Will Be Created

The expansion of the Business Cluster and Social Cluster will add 86,000 square metres of new space. This will further diversify the options available to companies while expanding the business and services ecosystem within Dubai CommerCity.

Within the Business Cluster, additional office space will be offered across six new buildings. Companies will be provided with various options ranging from shell-and-core offices to fully fitted workspaces and flexible, ready-to-use “plug-and-play” solutions. These options have been designed to meet the needs of companies of different sizes at every stage of their growth. The buildings are planned to be delivered in two phases. The first phase is expected to begin in the first quarter of 2027, while the second phase is scheduled to begin in the first quarter of 2028.

The Social Cluster is being developed to include spaces dedicated to retail outlets, restaurants, cafés, and services. The aim is to create a vibrant destination that supports Dubai CommerCity’s business community connected to the digital commerce and technology sectors.

The new facilities will create an environment where business, networking, and lifestyle come together seamlessly, supporting the diverse needs of both companies and professionals. In this way, Dubai CommerCity will further enhance its appeal as an integrated community that goes beyond merely providing business space to offer an everyday experience aligned with the working styles of the next generation of digital companies.

Next-Generation Logistics Model

Within the Logistics Cluster, Phase Two will introduce a new 5,600-square-metre facility called “The Hive.” Through its vertical design, which enables more efficient use of available space, the facility will offer an alternative logistics model that meets the needs of digital commerce.

The facility will feature 181 flexible units starting from 5 square metres, along with 24/7 climate-controlled fulfilment areas, digitally managed loading and unloading zones, and dedicated last-mile delivery facilities. In addition, EV charging stations and renewable energy solutions will be incorporated into the project. The facility has been designed in line with leading sustainability standards aligned with LEED certification requirements and aims to combine operational excellence with environmental sustainability.

Zarooni: This Phase Also Highlights the Importance of the Strategic Partnership Between DIEZ and Wasl

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. This project 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.”

Al Zarooni continued: “This phase also underscores the importance of the strategic partnership between DIEZ and Wasl. This partnership is developing an integrated destination that brings together advanced infrastructure and services that support the growth of the business community, while enabling companies to grow by accessing regional and global markets from Dubai.”

Qassim: It Will Provide the Advanced Infrastructure and Business Environment Companies Need

Hesham Abdulla Al Qassim, Vice Chairman and Group CEO of Wasl Group, said: “The second phase of Dubai CommerCity’s expansion reflects the strength of the strategic partnership between Wasl and DIEZ and their cooperation in developing integrated projects that support Dubai’s long-term economic ambitions. As demand continues to grow across the digital commerce, technology, and logistics sectors, this expansion will provide the advanced infrastructure and business environment required for companies to operate, grow, and access regional and global markets from Dubai.”

Al Qassim added: “This project further reinforces the objectives of the Dubai Economic Agenda D33. Through developments such as Dubai CommerCity, we continue to create future-ready assets that support economic growth, enhance competitiveness, and deliver long-term value for businesses, investors, and the wider economy.”

Advanced Operating Environment

The expansion is being carried out with a vision to create a smarter and more efficient operating environment that places customer needs at the centre of infrastructure and service design, while also supporting the rapid growth of digital commerce. Through increased capacity and integrated solutions and services, the new developments will provide businesses with a more flexible and seamless ecosystem that will help them improve operational efficiency, accelerate processes, and scale their operations more easily.

The expansion project is underpinned by strong operational growth. Over the past year, the number of e-commerce parcels shipped increased by 152%, while cargo volumes processed through the DCC Way transit platform rose by 14% in 2025. These indicators highlight the increase in transaction volumes and the need for advanced, technology-enabled operational capabilities that leverage automation and digitalisation to efficiently manage higher volumes of cross-border trade.