4 October 2026
Dubai CommerCity, the free zone dedicated exclusively to digital commerce, will invest more than AED 1.8 billion in the second phase of its expansion and add more than 91,000 sqm of new space, Dubai Media Office announced on 4 October 2026. Delivery is scheduled between the first quarter of 2027 and the fourth quarter of 2028 across the free zone’s Business, Logistics and Social clusters. The plan includes six new office buildings and The Hive, a 5,600 sqm vertical logistics facility with 181 flexible units starting from 5 sqm. Occupancy at Dubai CommerCity is close to 96% across its office, logistics and retail space.
Key facts at a glance
| Item | What has been announced |
|---|---|
| Project | Dubai CommerCity Phase Two expansion |
| Investment | more than AED 1.8 billion |
| New space | more than 91,000 sqm, of which 86,000 sqm in the Business and Social clusters |
| Delivery window | Q1 2027 to Q4 2028 |
| Offices | six new buildings, first phase Q1 2027, second phase Q1 2028 |
| Logistics | The Hive: 5,600 sqm, 181 units from 5 sqm, fulfilment areas operating 24/7 |
| Developer | joint venture of DIEZ and Wasl Group |
| Occupancy today | close to 96% across offices, logistics and retail |
What was announced
The announcement was made by Dubai Media Office on Sunday, 4 October 2026. Dubai CommerCity (DCC) is a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group. According to the free zone’s website, the two partners originally established it with an investment of AED 3.2 billion, and it is located near Dubai International Airport.
Phase Two is a series of projects across the three districts that make up the free zone. Together they add more than 91,000 sqm. The Business and Social clusters account for 86,000 sqm of that total, and the Logistics Cluster receives The Hive. The release gives a delivery window from the first quarter of 2027 to the fourth quarter of 2028. For the office buildings it names two phases: the first in Q1 2027 and the second in Q1 2028.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, said Phase Two “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 linked the project to the objectives of the Dubai Economic Agenda D33. Dr Mohammed Al Zarooni, Executive Chairman of DIEZ and Chairman of the Board of Dubai CommerCity, said the expansion responds to growing demand from companies in digital commerce and technology. Hesham Abdulla Al Qassim, Vice Chairman and Group CEO of Wasl Group, described it as a result of the partnership between Wasl and DIEZ.
Business Cluster: six new office buildings
The Business Cluster expansion includes six new office buildings. They will offer three formats: shell-and-core offices that the tenant fits out, fully fitted workspaces, and plug-and-play solutions. The free zone says the mix is designed for companies at various stages of growth. The first phase of the buildings is due in Q1 2027 and the second in Q1 2028.
The release does not publish rents, office sizes or the date from which leasing will open. Companies planning to take space in the new buildings will need to request these details from the free zone directly.
The Hive: a vertical logistics facility
In the Logistics Cluster, Phase Two introduces The Hive, a 5,600 sqm facility built around a vertical logistics model for digital commerce businesses. According to the release, it will include:
- 181 flexible units starting from 5 sqm;
- climate-controlled fulfilment areas operating around the clock;
- digitally managed loading and unloading zones;
- dedicated last-mile delivery facilities;
- electric vehicle charging stations and renewable energy solutions.
The facility has been designed in line with sustainability standards aligned with LEED certification requirements. A minimum unit of 5 sqm means the format is not limited to companies that lease a full warehouse.
Social Cluster
The Social Cluster will add retail outlets, restaurants, cafes and service facilities for the business community working inside the free zone. Together with the Business Cluster, it accounts for 86,000 sqm of the new space.
Demand behind the expansion
The release ties the expansion to demand. Occupancy at Dubai CommerCity has reached nearly 96% across its office, logistics and retail spaces. Over the past year, the number of e-commerce parcels shipped increased by 152%, and cargo volumes processed through the DCC Way transit platform grew by 14% in 2025.
The wider DIEZ group shows a similar picture. According to DIEZ data reported by Gulf News, its three zones (Dubai Airport Freezone, Dubai Silicon Oasis and Dubai CommerCity) recorded 96% occupancy in the first half of 2026, the number of companies rose 13% year on year and the combined workforce grew 24%. At the Dubai Technology Entrepreneur Campus, new company registrations increased 57% and registrations of AI-focused companies rose 95% in the first half. We covered the half-year results in our article on 96% occupancy across Dubai free zones in H1 2026.
What the expansion means for companies
For a company choosing where to register an e-commerce or trading business in Dubai, Phase Two changes the supply of space rather than the rules. The announcement does not change licensing, customs or visa procedures at Dubai CommerCity. What changes is the amount and type of space: new offices from Q1 2027, The Hive with small fulfilment units, and more retail and service facilities on site.
According to the free zone’s website, Dubai CommerCity issues e-commerce, trade, general trading, service and industrial licences. It also offers a dual licence with the Dubai Department of Economy and Tourism (DET), which lets a DCC company apply for a DET licence without the need for physical office space. Electricity, air conditioning and water are provided free of charge for office spaces, an onsite customs team handles clearance, and facilities operate 24 hours a day. The choice between a free zone and a mainland licence is covered in our guide mainland vs free zone company in the UAE.
Checklist: before you set up in Dubai CommerCity
- Match your activities to the licence type: e-commerce, trade, general trading, service or industrial.
- Decide whether you need storage and fulfilment on site or only an office, and whether The Hive format fits your volumes.
- Check what space is available now: occupancy is close to 96%, and the new office buildings are scheduled from Q1 2027.
- Prepare UBO documents: the free zone asks for a UBO declaration, certified passport copies, proof of address not older than 3 months and a group structure chart for corporate shareholders.
- Plan visas for owners and staff and the corporate bank account as part of the same timeline.
- If you also need to work onshore in Dubai, review the dual licence with DET.
How Atlant Capital can help
Atlant Capital helps entrepreneurs choose a free zone and licence for e-commerce and trading activities, compare Dubai CommerCity with other Dubai free zones and the mainland, and prepare the documents for registration. Our company setup in the UAE service covers licensing and registration from the first consultation, and our corporate bank account opening service takes the company through to an active account. For the full step-by-step process, see our company formation guide for the UAE.
Conclusion
Dubai CommerCity will invest more than AED 1.8 billion in Phase Two and add more than 91,000 sqm across its Business, Logistics and Social clusters between Q1 2027 and Q4 2028. The package includes six new office buildings and The Hive, a 5,600 sqm vertical logistics facility with 181 units from 5 sqm. The free zone is close to 96% occupied today, and rents and leasing dates for the new space have not yet been published.
Source: Gulf News, Emirates 24/7 (Dubai Media Office release).
FAQ
How much is Dubai CommerCity investing in its Phase Two expansion?
More than AED 1.8 billion, according to Dubai Media Office on 4 October 2026. The investment adds more than 91,000 sqm of new space across the Business, Logistics and Social clusters, with delivery between Q1 2027 and Q4 2028. Dubai CommerCity is a joint venture of DIEZ and Wasl Group.
What is The Hive in Dubai CommerCity?
A 5,600 sqm vertical logistics facility in the Logistics Cluster, built as part of Phase Two. It will have 181 flexible units starting from 5 sqm, climate-controlled fulfilment areas operating 24/7, digitally managed loading and unloading zones, last-mile delivery facilities and electric vehicle charging.
When will the new office space in Dubai CommerCity be ready?
The six new office buildings in the Business Cluster are scheduled in two phases: the first in Q1 2027 and the second in Q1 2028. The full Phase Two programme runs to Q4 2028. As of 4 October 2026, rents and leasing dates have not been published.
What licences does Dubai CommerCity issue?
According to the free zone’s website: e-commerce, trade, general trading, service and industrial licences, plus a dual licence with the Dubai Department of Economy and Tourism that lets a DCC company apply for a DET licence without the need for physical office space.
