Dubai World Trade Centre Authority (DWTCA) has launched a framework that allows registered companies in the DWTC Free Zone to issue multiple classes of shares according to their needs.
The reform provides flexibility in capital structuring and governance, enabling businesses to scale, attract investment and innovate.
It supports Dubai’s status as a hub for business and aligns with the Dubai Economic Agenda, D33, which aims to double the size of the emirate’s economy by 2033 and position it among the world’s top three urban economies.
DWTC Free Zone introduces multiple share classes for registered companies
Companies registered in the DWTC Free Zone can now issue a range of share classes beyond ordinary shares, including preference shares, founder’s shares, restricted shares and tiered structures such as class A/B/C/D shares.
These share structures can be tailored through a company’s Memorandum of Association to define rights and restrictions covering dividend entitlements, voting powers, transfer conditions, redemption or conversion options and safeguards for minority shareholders.
The framework establishes governance safeguards to protect shareholder rights and maintain transparency.
“With this pioneering step, the DWTC Free Zone is setting a new industry standard for capital structuring in the region. By aligning with Dubaiโs vision to be among the worldโs leading global business hubs, we are creating an environment that empowers companies to scale and attract investment. Todayโs founders and investors need flexible and transparent corporate structures to balance control, raise capital and retain talent. This framework is not only a milestone for our Free Zone, but also a catalyst for the wider business community, reinforcing Dubaiโs role as a progressive, globally competitive destination for enterprise and innovation,” Abdalla Al Banna, VP of Free Zone Regulatory Operations at DWTC Free Zone said in a statement.
Benefits for Dubai companies and investors
The differentiated share classes provide companies with tools to attract investment from stakeholders with different risk appetites, safeguard founders’ vision, support family offices with succession planning, and incentivise talent through equity-based compensation.
Ordinary shares will continue to serve as the default class for most companies, but DWTC Free Zone businesses now have the flexibility to adopt structures that support their growth and planning.
The announcement builds on developments within DWTC Free Zone, including the 2024 extension of its jurisdiction to One Za’abeel, the project developed by the Investment Corporation of Dubai.
This expansion enhances the Free Zone’s scale and scope, combining infrastructure with business advantages such as full foreign ownership, simplified licensing, 0% corporate tax and a regulatory environment.
DWTC Free Zone is home to companies across more than 40 sectors and remains focused on delivering solutions that enable businesses to establish, scale and succeed.
