Dubai continues to strengthen its position as a global business and investment hub with the Dubai World Trade Centre Authority (DWTC Freezone) launching a new multiple share class framework for companies operating within the DWTC Free Zone.
This new structure gives businesses greater flexibility in how they raise capital, manage ownership, and attract investors. The move is expected to boost confidence among institutional investors, family offices, and startups alike.
What Does the New Framework Mean for Businesses?
Until now, most companies issued only one type of share called ordinary shares, offering equal rights to all shareholders. Under the new system, DWTC Free Zone companies can now issue different types of shares, including:
- Preference Shares: offering fixed dividends and priority in liquidation.
- Founder’s Shares: granting enhanced voting rights or control to founders.
- Restricted Shares: often used for employee rewards, with conditions on transfer or sale.
- Tiered Shares (Class A/B/C/D): allowing companies to tailor voting rights, dividend access, and transferability to suit various investor profiles.
These options can be customised in the company’s Memorandum of Association (MOA) to match specific business goals, ensuring transparency and protection for all shareholders.
A Boost for Entrepreneurs and Investors
The introduction of multiple share classes gives companies, especially startups and growth-stage businesses, the ability to design ownership structures that support sustainable growth.
For example, founders can retain control while offering investors attractive returns, or introduce employee share schemes that vest over time to reward long-term contribution.
Reinforcing Dubai’s Global Appeal
With over 2,800 companies across 40 sectors already based in the DWTC Free Zone, and new developments like One Za’abeel expanding its reach, this latest update reinforces Dubai’s reputation as a forward-thinking business destination.
Coupled with benefits such as 100% foreign ownership, favourable taxation, and simplified licensing, the DWTC Free Zone continues to be one of the UAE’s most dynamic and investor-friendly environments.
Need Help Understanding What This Means for Your Business?
If you’re considering setting up or restructuring your company in the DWTC Free Zone, or want to know how the new share framework could benefit you, get in touch with our team today. We’ll guide you through your options and help you make the most of Dubai’s evolving business landscape.
