(MENAFN- Khaleej Times)

In a major step toward strengthening Dubai's position as a global investment hub, the Dubai World Trade Centre Authority (DWTCA) on Monday introduced a new multiple share class framework for companies operating within the DWTC Free Zone.

The reform is designed to give businesses more flexibility in how they raise capital, structure ownership, and attract investors - especially those with varying risk appetites and strategic interests.

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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.

This move comes as the DWTC Free Zone continues to grow rapidly. As of mid-2025, the zone hosts over 2,800 companies across more than 40 sectors, with hundreds of new businesses joining this year alone. The Free Zone's appeal lies in its central location, world-class infrastructure, and investor-friendly policies such as 100 per cent foreign ownership, zero per cent corporate tax, and simplified licensing.

What are multiple share classes - and why do they matter?

Traditionally, companies issue one type of share - known as ordinary shares - which give shareholders equal voting rights and dividend entitlements. However, the new framework allows DWTC Free Zone companies to issue a variety of share types, each with different rights and restrictions. These include:

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Preference shares, which may offer fixed dividends and priority over ordinary shares in case of liquidation.

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Founder's shares, which can give company founders enhanced voting rights or control.

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Restricted shares, often used for employee compensation, which may have conditions on when they can be sold.

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Tiered shares (Class A/B/C/D), which allow companies to customize voting power, dividend access, and transferability based on investor profiles.

This flexibility is especially valuable for startups and growth-stage companies. For example, a founder may want to retain control over key decisions while offering investors attractive returns. Or a company may want to reward employees with equity that vests over time. The new framework makes these options possible, helping businesses align their capital structure with long-term goals.

“This is a game-changer for Dubai's business landscape,” said Abdalla Al Banna, Vice President of Free Zone Regulatory Operations at DWTC.“By offering flexible and transparent corporate structures, we're enabling companies to scale efficiently, attract diverse investment, and retain top talent. It's a milestone not just for DWTC Free Zone, but for Dubai's broader ambition to be among the world's top three urban economies under the D33 Agenda.”

The framework also includes governance safeguards to protect shareholder rights and ensure transparency - key factors for institutional investors and family offices considering Dubai as a base.

The DWTC Free Zone's recent expansion to include One Za'abeel, a landmark sustainable development, has further boosted its appeal. The addition has increased available commercial space and extended Free Zone benefits to more companies, reinforcing Dubai's reputation as a forward-looking business destination.

With the introduction of differentiated share classes, DWTC Free Zone is not just keeping pace with global financial hubs - it's setting a new standard for how businesses in the region can grow, innovate, and attract capital.

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