Dubai CommerCity announces Dhs 1.8 billion expansion to boost digital economy growth

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Dubai CommerCity (DCC) has announced a significant expansion plan, investing over Dhs 1.8 billion to enhance its role as a hub for digital commerce. This second phase of development is set to take place between the first quarter of 2027 and the fourth quarter of 2028, reflecting the growing demand for digital commerce infrastructure in the region.

As the first free zone dedicated exclusively to digital commerce, DCC aims to bolster its integrated platform to support the digital economy. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Integrated Economic Zones Authority (DIEZ), emphasized that this expansion aligns with Dubai’s vision for resilience and competitiveness in the face of global economic challenges. He noted that the emirate’s development model is designed to capitalize on emerging opportunities in the global economy.

Expansion Details and Infrastructure Growth

The expansion will introduce new projects across DCC’s three key districts: the Business Cluster, Logistics Cluster, and Social Cluster, adding over 91,000 square meters of office space. This increase in capacity is expected to accommodate the rising number of digital commerce and technology companies, with current occupancy rates nearing 96% across existing facilities.

The Business Cluster will see the addition of six new buildings, offering a variety of office solutions tailored to businesses of different sizes. These include shell-and-core offices and fully fitted workspaces, designed to meet the evolving needs of companies as they grow. The first phase of these developments is scheduled for completion in early 2027.

Innovative Logistics Solutions

Within the Logistics Cluster, a notable feature of the expansion is ‘The Hive,’ a 5,600 square meter facility designed to optimize logistics operations through its vertical layout. This facility will include 181 flexible units and climate-controlled fulfillment areas, enhancing the efficiency of last-mile delivery services. The design incorporates sustainability features, including EV charging stations and renewable energy solutions, adhering to LEED certification standards.

Dr. Mohammed Al Zarooni, Executive Chairman of DIEZ, highlighted that this expansion is a strategic move to reinforce Dubai’s position as a global leader in digital commerce and technology. He noted that the project reflects the strong partnership between DIEZ and Wasl Group, aimed at creating an integrated destination that supports business growth and access to regional and global markets.

Market Demand and Future Prospects

The decision to expand comes amid robust operational growth, with a reported 152% increase in e-commerce parcels shipped over the past year. Additionally, cargo volumes processed through the DCC Way transit platform grew by 14% in 2025, indicating a rising demand for advanced, technology-enabled operational capabilities.

Hesham Abdulla Al Qassim, Vice Chairman and Group CEO of Wasl Group, reiterated the importance of this expansion in meeting the needs of the growing digital commerce and logistics sectors. He stated that the project aligns with the Dubai Economic Agenda, D33, aimed at enhancing the emirate’s competitiveness and delivering long-term value for businesses and investors.

The expansion of Dubai CommerCity is poised to create a more efficient operating environment, focusing on customer needs and supporting the rapid growth of digital commerce. As the region continues to evolve, DCC’s developments will play a crucial role in shaping the future of commerce in Dubai and beyond.

According to Gulf Today, the expansion reflects a strategic vision to enhance operational efficiency and scalability for businesses operating in the digital economy.

For more insights on business developments in the region, visit our Business section.

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