Dubai World Trade Centre Authority (DWTCA) has launched a new framework allowing companies registered in the DWTC Free Zone to issue multiple classes of shares, a move aimed at enhancing capital structuring and corporate governance. The initiative provides businesses with greater flexibility to scale, attract investment, and innovate, reinforcing Dubai’s role as a global business hub and supporting the emirate’s economic agenda, D33, which seeks to double the economy by 2033.

Under the framework, companies can now offer a variety of share classes beyond ordinary shares, including preference, founder’s, restricted, and tiered structures such as class A/B/C/D shares. These shares can be structured in a company’s Memorandum of Association to define rights and restrictions related to dividends, voting powers, transfer conditions, and redemption or conversion options, while safeguarding minority shareholders. The framework also includes governance measures designed to maintain transparency and protect shareholder interests.

Abdalla Al Banna, vice president of Free Zone Regulatory Operations at DWTC Free Zone, described the reform as a step toward “setting a new industry standard for capital structuring in the region.” He emphasized that flexible corporate structures enable companies to balance control, raise capital, and retain talent while supporting Dubai’s vision as a leading global business destination.

The differentiated share classes allow companies to attract investors with varying risk profiles, protect founders’ long-term vision, support family office succession planning, and incentivize employees through equity-based compensation. Ordinary shares remain the default, but companies now have the option to adopt more complex structures to support sustainable growth.

This framework complements recent expansions within DWTC Free Zone, including the 2024 extension to One Za’abeel, a sustainable development by the Investment Corporation of Dubai. The Free Zone offers full foreign ownership, simplified licensing, a 0% corporate tax rate, and regulatory support, hosting businesses across more than 40 sectors.

Photo credits: Government of Dubai Media Office

Oksana Bozhko

Oksana Bozhko is a Contributor to Dubai Voice.