The Dubai World Trade Centre Authority (DWTCA) has unveiled a new framework that allows companies registered within the DWTC Free Zone to issue multiple classes of shares, providing greater flexibility in meeting their strategic objectives.
This landmark reform enhances flexibility in capital structuring and governance, offering businesses greater control over their growth and investment strategies.
The reform further strengthens Dubai’s position as a global business hub, aligning with the Dubai Economic Agenda, D33. This ambitious plan aims to double the emirate’s economy by 2033 and establish Dubai among the top three urban economies worldwide, positioning it as a key player in the global market.
DWTCA’s Reform: Customizable Share Classes for Tailored Business Growth
Under the new framework, companies registered in the DWTC Free Zone can now issue a broader range of share classes beyond the traditional 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 (MOA) to define specific rights and restrictions covering dividend entitlements, voting powers, transfer conditions, redemption or conversion options, and safeguards for minority shareholders. The DTWCA framework also establishes robust governance safeguards designed to protect shareholder rights and maintain transparency.
Abdalla Al Banna Vice President Free Zone Operations DWTC
“With this pioneering step, the DWTC Free Zone is setting a new industry standard for capital structuring in the region. By aligning with Dubai’s vision to be among the world’s leading global business hubs, we are creating an environment that empowers companies to scale and attract investment. Today’s 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 Dubai’s role as a progressive, globally competitive destination for enterprise and innovation.”
DWTCA Empowers Companies to Adopt Sophisticated Capital Structures
By introducing differentiated share classes, DWTCA is providing companies with the tools to attract investment from stakeholders with diverse risk appetites, safeguard founders’ long-term vision, support family offices with succession planning, and incentivize talent through equity-based compensation.
While ordinary shares will continue to serve as the default class for most companies, DWTC Free Zone businesses now have the flexibility to adopt more sophisticated structures that support their sustainable growth and long-term planning.
