The free zone will add six office buildings and a multi-level vertical logistics hub after occupancy hit 96 percent across existing premises.
DUBAI, October 5, 2026 : Dubai CommerCity is rolling out a Dh1.8 billion Phase Two expansion across its commercial, logistics, and social zones, moving to satisfy an acute shortage of specialized floor space as global e-commerce and digital tech firms crowd into the emirate.
The free zone, a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group, has seen occupancy across its current office, logistics, and retail spaces hit nearly 96 percent.
Delivery of the new phase will roll out in stages between the first quarter of 2027 and the final quarter of 2028. It aligns with Dubai’s D33 Economic Agenda, which aims to double the size of the emirate’s economy by 2033 and entrench its standing among the world’s top three urban economies.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, noted that the capital injection capitalizes on structural tailwinds across global digital trade. Dubai’s economic model, he said, continues to build on resilience and rapid adaptation, drawing high-value investment despite wider international volatility.
The capital expenditure covers more than 91,000 square metres of newly added space divided across the free zone’s three core sectors: the Business Cluster, the Social Cluster, and the Logistics Cluster.
A combined 86,000 square metres will expand the Business and Social clusters. Six new office buildings will join the commercial hub, offering shell-and-core space alongside fitted and turn-key managed offices. The first batch of buildings will open to tenants in the first quarter of 2027, with the remainder slated for handover by early 2028. Alongside them, the Social Cluster will absorb expanded retail strips, cafés, dining concepts, and community amenities to cater to on-site tech workers.
The logistics footprint will see an unconventional structural shift with the debut of “The Hive.” Covering 5,600 square metres, the facility employs a vertical warehouse architecture intended to maximize land efficiency in central Dubai.
The Hive will house 181 modular units starting at 5 square metres, designed for specialized cross-border merchants, micro-fulfilment operations, and last-mile dispatchers. The LEED-certified structure will operate 24/7 temperature-controlled storage, automated sorting and bay-loading docks, electric-vehicle charging bays, and rooftop renewable energy installations.
Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ and Chairman of Dubai CommerCity, described the move as essential to protecting the commercial competitiveness of regional and multinational brands that anchor operations in Dubai to access GCC, South Asian, and African markets.
The decision to scale follows a sharp run-up in physical throughput across the precinct. Annual parcel handling surged 152 percent, while freight volumes routed via the DCC Way customs transit corridor increased 14 percent through 2025.
Wasl Group Vice Chairman and CEO Hesham Abdulla Al Qassim said the ongoing venture with DIEZ targets durable industrial assets that underpin long-run economic diversification rather than short-term real estate cycles.
