Image: DWTCA
Dubai World Trade Centre Authority (DWTCA) has introduced a new framework allowing companies registered in the DWTC Free Zone to issue multiple classes of shares, in a move aimed at increasing capital structuring flexibility and attracting a wider pool of investors.
The reform, announced on Monday, enables businesses to issue various share types beyond traditional ordinary shares, including preference, founder’s, restricted, and tiered share classes such as A, B, C, and D.
These can be customised in a company’s Memorandum of Association to define specific rights and restrictions, covering dividends, voting powers, transfer conditions, and safeguards for minority shareholders.
The initiative, part of Dubai’s ongoing drive to strengthen its position as a global business hub, aligns with the Dubai Economic Agenda D33, which seeks to double the size of the emirate’s economy by 2033 and rank it among the world’s top three urban economies.
“With this pioneering step, the DWTC Free Zone is setting a new industry standard for capital structuring in the region,” said Abdalla Al Banna, VP of Free Zone Regulatory Operations at DWTC Free Zone. “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.”
DWTCA framework to help firms attract investors
The framework is designed to help companies attract investors with varying risk appetites, protect founders’ long-term interests, assist family offices in succession planning, and incentivise employees through equity-based rewards.
While ordinary shares will remain the default option, businesses now have the flexibility to adopt advanced capital structures to support sustainable growth.
The announcement follows other recent developments within the DWTC Free Zone, including the 2024 expansion of its jurisdiction to One Za’abeel, the landmark project developed by the Investment Corporation of Dubai.
The free zone, which offers full foreign ownership, a 0 per cent corporate tax rate, and streamlined licensing, currently hosts companies across more than 40 sectors.
DWTCA said the new share framework reinforces Dubai’s reputation as a progressive and competitive global destination for enterprise and innovation.
