Post by : Badri Ariffin

Dubai World Trade Centre Authority (DWTCA) has unveiled a landmark framework allowing companies in the DWTC Free Zone to issue multiple types of shares, marking a major shift in how businesses can structure capital and governance. This initiative aims to give companies greater flexibility in raising funds, retaining talent, and planning long-term growth, further reinforcing Dubai’s standing as a leading global business hub.

Traditionally limited to ordinary shares, companies can now explore a wider spectrum of share types including preference shares, founder’s shares, restricted shares, and tiered options like Class A/B/C/D shares. These structures can be customized in a company’s Memorandum of Association (MOA) to define voting powers, dividend rights, transfer rules, conversion options, and protections for minority shareholders. This flexibility allows businesses to align ownership and control with strategic goals while safeguarding investor and founder interests.

The framework also ensures transparency and robust governance, helping companies attract a diverse range of investors and stakeholders. By enabling differentiated share classes, businesses can balance risk appetites, support family succession planning, and implement equity-based incentives to retain talent. Ordinary shares remain the default option, but companies now have tools to implement sophisticated structures tailored to their growth ambitions.

This reform complements DWTC Free Zone’s recent developments, including the 2024 expansion to One Za’abeel, a sustainable mega-project developed by the Investment Corporation of Dubai. With world-class infrastructure, full foreign ownership, simplified licensing, and 0% corporate tax, the Free Zone continues to attract companies across more than 40 sectors, offering tailored solutions for setup, scaling, and long-term success.

The move positions DWTC Free Zone as a progressive environment that empowers companies to innovate, expand, and attract global investment, supporting Dubai’s economic vision to become one of the world’s top urban economies by 2033.

#Dubai #UAE News