Dubai allocates $3.5bn to expand Silicon Oasis free zone

Dubai Silicon Oasis, a special economic zone, will undertake a multibillion-dollar expansion as the emirate positions itself as a global hub for innovation and advanced technology.

The Dubai government has allocated AED12.8 billion ($3.5 billion) to expand the free zone, which is managed by the state-run Dubai Integrated Economic Zones Authority, Wam news agency reported.

The expansion plan includes two main projects: District IO and Block 14.

District IO will account for AED11 billion of the sum and aims to provide infrastructure to support future technologies and strengthen research, development and innovation, the UAE state-run news agency said.

The project will include over 20 properties compliant with the LEED green building rating system. It will also offer hospitality facilities including a conference centre.

The district will host more than 6,500 global companies, SMEs and startups across six main sectors including smart mobility, 3D printing, robotics, artificial intelligence and quantum computing.

Work on the first phase will start this year, while the second-phase development commences in 2027.

The first phase of the Block 14 project will support the Dubai 2040 urban master plan and the transit-oriented development model, with investments of AED1.8 billion.

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Located near the Dubai Metro Blue Line station in Silicon Oasis, the project will be wrapped up in 2029, in line with the Blue Line’s completion.

In November, Dubai’s Roads and Transport Authority said work on the Blue Line had been gaining pace since its groundbreaking in June.

The AED56.5 billion project spans 30km and includes 14 stations, linking the Red and Green lines and connecting major residential, economic and educational districts. Operations are set to begin in September 2029.

Dubai has approved its 2026-28 budget with AED302.7 billion in expenditure and AED329.2 billion in revenues. 

Almost 48 percent of the projected spending will be allocated to infrastructure investments, including roads, bridges, tunnels, public transport, sewage systems, parks and renewable energy facilities.