Dubai is expanding its digital commerce infrastructure with a new AED 1.8 billion investment in Dubai CommerCity, as demand for office, logistics and retail space continues to rise across the emirate’s digital economy.
Dubai CommerCity has launched the second phase of its expansion, which will add more than 91,000 square metres of new space across its Business, Logistics and Social clusters. The development is expected to be delivered in stages between the first quarter of 2027 and the fourth quarter of 2028.
The investment comes as occupancy across Dubai CommerCity approaches 96%, highlighting growing demand from businesses operating in e-commerce, logistics, technology and related sectors.
Expansion Responds to Growing Business Demand
Dubai CommerCity is a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group and is positioned as a dedicated hub for digital commerce companies.
Under the latest expansion, approximately 86,000 square metres will be added to the Business and Social clusters. Plans include six new office buildings alongside retail outlets, restaurants, cafés and other services.
Businesses will have access to different workspace formats, including shell-and-core offices, fitted spaces and flexible plug-and-play facilities.
The expansion follows strong growth across DIEZ’s wider network of economic zones. During the first half of 2026, the number of companies operating within DIEZ zones increased 13% year-on-year, while the workforce expanded by 24%.
Logistics Infrastructure Gets a Major Upgrade
A significant part of the project will focus on logistics and fulfilment.
Dubai CommerCity plans to introduce a new 5,600-square-metre facility called The Hive, featuring 181 flexible units starting from five square metres.
The facility will include climate-controlled fulfilment areas, digitally managed loading and unloading zones and infrastructure designed specifically for last-mile delivery operations. Electric vehicle charging stations and renewable-energy systems are also planned.
These investments are becoming increasingly important as online retailers and digital brands seek faster fulfilment and more efficient cross-border distribution.
E-Commerce Activity Continues to Rise
The expansion is being supported by significant growth in Dubai CommerCity’s operational volumes.
The number of e-commerce parcels shipped through the hub increased 152% over the past year, while cargo volumes processed through the DCC Way transit platform grew 14% in 2025.
Dubai CommerCity has also been strengthening its cross-border digital trade infrastructure. Earlier in 2026, it expanded integration with Dubai Customs, Dubai Municipality and NAQEL Express to automate processes ranging from customs clearance to final delivery.
The combination of physical infrastructure and digital trade systems reflects Dubai’s broader strategy of making it easier for companies to use the emirate as a base for regional and international e-commerce operations.
Dubai Strengthens Its Position in Digital Commerce
Digital commerce has become an increasingly important part of Dubai’s economic diversification strategy.
Rather than focusing solely on traditional retail, the emirate is investing in an ecosystem that combines e-commerce, logistics, digital payments, artificial intelligence, automation and cross-border trade.
Dubai’s growing international role was visible at WORLDEF Dubai 2026, hosted at Dubai CommerCity, which attracted more than 18,000 visitors, investors, founders, executives and other participants from over 80 countries. Discussions focused on areas including AI, cybersecurity, supply chains, digital payments and the future of cross-border commerce.
The UAE’s first Applied Artificial Intelligence Innovation Centre was also announced at Dubai CommerCity earlier this year, further connecting the free zone with Dubai’s wider technology ambitions.
Part of Dubai’s Wider Economic Strategy
The AED 1.8 billion expansion also supports the objectives of the Dubai Economic Agenda D33, which seeks to strengthen Dubai’s position among the world’s leading economic cities.
For Dubai, building the digital economy increasingly involves more than attracting technology companies. It requires warehouses, fulfilment facilities, digital customs systems, flexible offices and infrastructure that allows businesses to move products efficiently between markets.
The near-full occupancy of Dubai CommerCity suggests demand for that ecosystem is already significant.
With new facilities scheduled to come online between 2027 and 2028, the latest investment represents another step in Dubai’s effort to establish itself as a major international centre for digital commerce, logistics and technology-driven trade.
