Dubai CommerCity Expansion 2026: Dubai CommerCity is entering a major new phase of growth, with more than AED 1.8 billion being invested in its second expansion phase. The project will add more than 91,000 square metres of new space and introduce new business and logistics facilities for the digital-commerce sector.

The expansion was announced on October 4, 2026, as demand for Dubai's digital-commerce infrastructure continues to rise. Dubai CommerCity has reported occupancy of nearly 96% across its office, logistics and retail spaces, creating the need for additional capacity.

Dubai CommerCity Phase 2 expansion

The second phase will be developed across Dubai CommerCity's three main clusters: Business, Logistics and Social.

The new development is scheduled to be delivered in stages. The first phase is targeted for Q1 2027, while the second phase is planned for Q4 2028.

The expansion is designed to increase the capacity of Dubai CommerCity and strengthen its role as an environment for companies involved in digital commerce, technology, logistics and related services.

Dubai CommerCity describes itself as a dedicated free zone for digital commerce and operates as a joint venture between the Dubai Integrated Economic Zones Authority (DIEZ) and Wasl Group.

The Hive: Dubai CommerCity's new logistics facility

One of the most notable parts of the expansion is The Hive, a new 5,600-square-metre facility in the Logistics Cluster.

Instead of relying only on conventional horizontal warehouse space, The Hive will use a vertical logistics model to make better use of available space.

The facility is planned to include 181 flexible units, with units starting from just 5 square metres. It will also provide 24/7 climate-controlled fulfilment areas, digitally managed loading and unloading zones and dedicated last-mile delivery facilities.

The project will also incorporate EV charging infrastructure and renewable-energy solutions, with sustainability features designed around leading standards aligned with LEED certification requirements.

For smaller e-commerce companies, the flexible-unit model could be one of the more significant features to watch as the new facility moves toward delivery.

Six new buildings planned for the Business Cluster

The Business Cluster will receive additional office capacity through six new buildings.

The planned offices will include shell-and-core units, fully fitted workplaces and flexible plug-and-play solutions. The Business and Social clusters together are expected to account for about 86,000 square metres of additional space.

This gives businesses more options as they move from small operations to larger regional offices.

Dubai CommerCity Expansion 2026: Why the expansion matters

The timing of the expansion is important.

Dubai CommerCity's latest figures show strong demand for its existing infrastructure. The wider DIEZ economic-zone portfolio, which includes Dubai CommerCity, Dubai Airport Freezone and Dubai Silicon Oasis, recorded 96% occupancy during the first half of 2026. DIEZ also reported a 13% increase in companies and 24% growth in its workforce compared with H1 2025.

For Dubai, the CommerCity expansion is therefore more than a property-development project. It is part of the emirate's wider push to build infrastructure around digital trade, technology and future commerce.

Dubai CommerCity business setup and licences

Dubai CommerCity is designed specifically around businesses operating in digital commerce and related activities.

Its official licence options currently include:

  • E-commerce Licence

  • Trade Licence

  • General Trading Licence

  • Service Licence

  • Industrial Licence

  • Dual Licence with DET

The E-commerce Licence is intended for businesses selling goods or services online and managing digital transactions. Trade and General Trading licences cover activities such as import, export, storage and distribution, while the Industrial Licence supports light manufacturing, packaging and assembly.

The official site also states that companies can access customs and logistics services, office facilities and other infrastructure within the CommerCity ecosystem.

Businesses considering setting up should check the current activity requirements and fees directly with Dubai CommerCity because licence costs can vary according to the activity, company structure, office requirements and visa needs.

Dubai CommerCity location

Dubai CommerCity is located in Umm Ramool, close to Dubai International Airport.

Its location is one of the reasons the free zone is positioned as a gateway for regional and international digital-commerce operations. The official CommerCity website highlights its proximity to Dubai International Airport and its access to regional and global markets.

The location also supports its logistics-focused model, where warehousing, fulfilment and last-mile services form part of the wider business ecosystem.

A bigger digital-commerce ecosystem

The expansion follows several other developments aimed at strengthening the digital-trade infrastructure around Dubai CommerCity.

In May 2026, Dubai CommerCity announced an enhanced cross-border e-commerce platform involving Dubai Customs, Dubai Municipality and NAQEL Express. The platform is designed to automate parts of the trade journey, from order placement and customs clearance through to final delivery.

This means the new physical capacity is being developed alongside digital infrastructure rather than as a standalone office or warehouse expansion.

What businesses can expect next

The immediate milestone to watch is Q1 2027, when the first part of the latest expansion is scheduled for delivery.

The full programme is expected to continue through Q4 2028, gradually adding office, logistics and lifestyle capacity across the three clusters.

The combination of additional office space, smaller logistics units, fulfilment infrastructure and digital trade services could make the next phase particularly relevant to e-commerce brands looking to establish or expand regional operations from Dubai.

For Verity Gulf readers, Dubai CommerCity expansion 2026 is therefore a more useful search topic than simply tracking the free zone itself. The AED 1.8 billion investment, 91,000-square-metre expansion and new Hive logistics facility provide several specific developments to follow as construction and delivery progress into 2027.

Note: Licence fees, availability and business-setup requirements can change. Companies should verify current commercial terms directly with Dubai CommerCity before making business decisions.