Dubai, UAE – Dubai CommerCity, the region’s first free zone dedicated exclusively to digital commerce, has announced a Phase Two expansion with a total investment of more than AED 1.8 billion. The development will add more than 91,000 square metres of new office space and is scheduled to be delivered between the first quarter of 2027 and the fourth quarter of 2028.
The free zone is a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group. The expansion was announced by the Government of Dubai Media Office and comes as occupancy across the existing office, logistics and retail spaces stands at nearly 96%.
Three new clusters
Phase Two is organised around three clusters designed to serve e-commerce companies at every stage of growth:
- Business Cluster: six new buildings offering shell-and-core, fully fitted and plug-and-play office options, delivered in two stages in Q1 2027 and Q1 2028.
- Social Cluster: retail outlets, restaurants, cafés and everyday services for the community working in the zone. Together, the Business and Social clusters account for around 86,000 sqm.
- Logistics Cluster – “The Hive”: a 5,600 sqm vertical facility with 181 flexible units starting from just 5 sqm, 24/7 climate-controlled fulfilment areas, digitally managed loading zones and last-mile delivery facilities.
The Hive is also being designed with EV charging and renewable energy in line with LEED-aligned sustainability standards, giving smaller online sellers access to fulfilment infrastructure that would normally be out of reach.
Strong growth behind the investment
The expansion follows sharp growth in activity at the free zone. E-commerce parcels shipped rose by 152% over the past year, while cargo moving through the DCC Way transit platform grew by 14% in 2025.
The project is aligned with the Dubai Economic Agenda D33, which aims to double the size of Dubai’s economy over the next decade and strengthen the emirate’s position as a global hub for digital trade.
What it means for businesses
For e-commerce brands, marketplaces, logistics providers and tech-enabled retailers looking to set up or scale in Dubai, the new phase adds flexible space options ranging from micro-fulfilment units to fully fitted offices. Companies interested in space in the new clusters can contact Dubai CommerCity directly for leasing details.
Source: Government of Dubai Media Office.
