Dubai to expand CommerCity in push for digital economy growth

Dubai's CommerCity, a free zone specializing in digital commerce, is set to expand with a Dh1.8 billion ($272.2 million) investment. This second phase of the expansion, spanning from the first quarter of 2027 to the fourth quarter of 2028, aims to bolster the emirate's digital economy growth. Sheikh Ahmed bin Saeed, Chairman of the Dubai Integrated Economic Zones Authority (Diez), highlighted that this expansion occurs amid Dubai's resilience in the face of global economic shifts and challenges.

The expansion, a collaboration between Diez and Wasl Group, will introduce innovative projects across three districts: the Business Cluster, Logistics Cluster, and Social Cluster. Altogether, these projects will add more than 91,000 square meters of new office space, enhancing the free zone's capacity and broadening its integrated ecosystem to better serve companies in digital commerce and technology sectors.

The push for expansion capitalizes on Dubai CommerCity's strong demand, with an impressive occupancy rate of nearly 96 percent across its office, logistics, and retail spaces. This investment underscores the growing investor confidence in Dubai's economic ecosystem and its capacity to attract high-quality investments. Additionally, this move aligns with the Dubai Economic Agenda, D33, which aims to double Dubai's economy to Dh32 trillion by 2033 and solidify the city's status as a global hub for the digital economy and future commerce.

Key components of the expansion include the Business Cluster and Social Cluster, which will collectively add 86,000 square meters of new space. The Business Cluster will see the addition of six new buildings, featuring a range of office spaces, including shell-and-core offices, fully fitted workspaces, and flexible plug-and-play solutions.

Meanwhile, the Logistics Cluster will introduce The Hive, a 5,600 square meter facility offering a novel logistics model. This includes 181 flexible units, climate-controlled fulfillment areas, and digitally managed loading and unloading zones.