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Dubai CommerCity launches Dh1.8bn second phase adding 91,000 sqm

🇦🇪 United Arab Emirates, Dubai 05:35 Business Business5 Official updated 6 d ago first reported by Emirates 24|7

Version 2: A further business outlet, Economy Middle East, has added detail on the expansion, corroborating the 86,000 square metre figure for the Business and Social clusters and the six new office buildings, and giving a dollar equivalent of $490.1 million while The National continues to report the investment as $272.2 million.

In short

Dubai CommerCity, a free zone dedicated to digital commerce, has announced the second phase of its expansion with total investments exceeding Dh1.8 billion, to be delivered between the first quarter of 2027 and the fourth quarter of 2028. The project adds more than 91,000 square metres of new office space across its Business, Logistics and Social clusters, after occupancy reached nearly 96 per cent, the free zone said. Outlets differed on the dollar equivalent of the investment.

Read the full story 2 min read

Dubai CommerCity, a free zone dedicated to digital commerce in Dubai, announced the second phase of its expansion, with total investments exceeding Dh1.8 billion, according to Emirates 24|7, WAM, The National and Economy Middle East. The free zone is a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group and describes itself as the region’s first free zone dedicated exclusively to digital commerce. Emirates 24|7, WAM, The National and Economy Middle East reported that the project is scheduled for delivery between the first quarter of 2027 and the fourth quarter of 2028. [ 2 , 3 , 5 , 6 ]

The expansion will add more than 91,000 square metres of new office space across the free zone’s three districts — the Business Cluster, Logistics Cluster and Social Cluster — according to Gulf News, Emirates 24|7, The National and Economy Middle East. Emirates 24|7 and Economy Middle East reported that the Business and Social Clusters account for 86,000 square metres of that space, and that the Business Cluster expansion includes six new office buildings offering shell-and-core offices, fully fitted workspaces and plug-and-play solutions. Gulf News reported that Phase Two will introduce “The Hive”, a 5,600 square metre facility in the Logistics Cluster that uses a vertical design to optimise space for digital commerce. [ 1 , 2 , 5 , 6 ]

The free zone said occupancy has reached nearly 96 per cent across its office, logistics and retail spaces, which it cited as evidence of demand from digital commerce and technology companies. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, 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.” He said the expansion reflects growing investor confidence in Dubai’s economic ecosystem and its ability to attract high-quality investment, and that it aligns with the objectives of the Dubai Economic Agenda D33. [ 2 , 3 , 5 , 6 ]

Outlets differed on the dollar equivalent of the investment. The National reported the figure as Dh1.8 billion ($272.2 million) and said the Dubai Media Office announced the project in a statement. Economy Middle East put the investment at more than AED1.8 billion ($490.1 million), and Arabian Business described it as an expansion exceeding $490 million, highlighting the six new office buildings and the vertical logistics facility. [ 4 , 5 , 6 ]

The National reported that the D33 agenda, launched in January, aims to double the size of Dubai’s economy, with a target of reaching Dh32 trillion by 2033 and establishing the emirate among the top three global cities. [ 5 ]

Why it matters

The expansion points to continued demand for digital-commerce space in Dubai, with the free zone reporting occupancy near 96 per cent across its office, logistics and retail areas. Officials linked the project to the Dubai Economic Agenda D33, a plan whose stated aim is to double the size of the emirate’s economy. Delivery is spread across 2027 and 2028, so the added capacity is still some time away.

Key facts

  • Dubai CommerCity announced the second phase of its expansion, with total investments exceeding Dh1.8 billion. [ 2 , 3 , 5 , 6 ]
  • The expansion is scheduled for delivery between the first quarter of 2027 and the fourth quarter of 2028. [ 2 , 3 , 5 , 6 ]
  • It will add more than 91,000 square metres of new office space across the free zone’s three districts: the Business Cluster, Logistics Cluster and Social Cluster. [ 1 , 2 , 5 , 6 ]
  • Emirates 24|7 and Economy Middle East reported that the Business and Social Clusters account for 86,000 square metres of the new space and that the Business Cluster expansion includes six new office buildings with shell-and-core offices, fitted workspaces and plug-and-play solutions. [ 2 , 6 ]
  • Gulf News reported that Phase Two will introduce “The Hive”, a 5,600 square metre logistics facility built on a vertical design. [ 1 ]
  • Occupancy reached nearly 96 per cent across the free zone’s office, logistics and retail spaces. [ 2 , 3 , 5 , 6 ]
  • Dubai CommerCity is a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group, and describes itself as the region’s first free zone dedicated exclusively to digital commerce. [ 2 , 3 , 5 , 6 ]
  • Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, said the expansion reflects growing investor confidence in Dubai’s economic ecosystem and aligns with the objectives of the Dubai Economic Agenda D33. [ 2 , 3 , 5 , 6 ]

Confirmed by several sources

  • Dubai CommerCity is a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group and describes itself as the region’s first free zone dedicated exclusively to digital commerce. [ 2 , 3 , 5 , 6 ]
  • The second phase involves total investments exceeding Dh1.8 billion. [ 2 , 3 , 5 , 6 ]
  • Delivery is planned between the first quarter of 2027 and the fourth quarter of 2028. [ 2 , 3 , 5 , 6 ]
  • The projects will add more than 91,000 square metres of new office space across the Business, Logistics and Social clusters. [ 1 , 2 , 5 , 6 ]
  • The Business and Social Clusters account for 86,000 square metres of the new space, and the Business Cluster expansion includes six new office buildings offering shell-and-core offices, fully fitted workspaces and plug-and-play solutions. [ 2 , 6 ]
  • Occupancy stands at nearly 96 per cent across office, logistics and retail spaces. [ 2 , 3 , 5 , 6 ]
  • Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, said the expansion reflects growing investor confidence in Dubai’s economic ecosystem and aligns with the objectives of the Dubai Economic Agenda D33. [ 2 , 3 , 5 , 6 ]

Still unclear

  • The dollar equivalent of the Dh1.8 billion investment. The National reported the figure as Dh1.8 billion ($272.2 million), while Economy Middle East put it at more than AED1.8 billion ($490.1 million) and Arabian Business described the expansion as exceeding $490 million; the documents give no explanation for the difference.
  • Details of “The Hive”, the 5,600 square metre vertical-design logistics facility. It appears only in Gulf News, and no other document confirms the figure or the facility’s role.
  • How the Dh1.8 billion is financed, when construction starts beyond the delivery window, and any signed tenant commitments. The documents describe the investment total, the floor space and the delivery dates but give no financing, construction-start or leasing details.

What local media are saying

Business mediaBusiness outlets led on the investment total, the floor space added, the near-96 per cent occupancy figure and the DIEZ chairman’s quotes, framing the project as support for Dubai’s digital economy and the D33 agenda. Gulf News focused on the floor space and the new logistics facility, Emirates 24|7 on the breakdown across clusters and the six new office buildings, The National on the investment size, the Dubai Media Office statement and the D33 context, Economy Middle East on the occupancy figure and cluster split, and Arabian Business summarised the investment and occupancy with the office buildings and vertical logistics facility. [ 1 , 2 , 4 , 5 , 6 ]
Official sourcesThe Emirates News Agency carried the announcement in a Dubai-datelined report, presenting the free zone as an integrated platform for the digital economy and future commerce, quoting the DIEZ chairman and citing the delivery window, the investment total and the near-96 per cent occupancy. [ 3 ]

Timeline, local time

  1. Gulf News publishes its report on the expansion, including the 91,000 square metre figure and the 5,600 square metre “Hive” logistics facility. [ 1 ]
  2. Emirates 24|7 reports the Dh1.8 billion expansion, the 2027–2028 delivery window, the near-96 per cent occupancy and the DIEZ chairman’s comments. [ 2 ]
  3. Emirates News Agency (WAM) publishes a Dubai-datelined report on the AED1.8 billion second phase. [ 3 ]
  4. Arabian Business reports the expansion at more than $490 million with six new office buildings and a vertical logistics facility. [ 4 ]
  5. The National reports the Dh1.8 billion ($272.2 million) investment, citing a Dubai Media Office statement. [ 5 ]
  6. Economy Middle East reports the expansion at AED1.8 billion ($490.1 million), adding 91,000 square metres as occupancy reaches 96 per cent. [ 6 ]