DWTC expands share class options to boost investment flexibility

The DWTC has confirmed the implementation of a new framework, which enables registered companies in the economic free zone to issue multiple share classes more aligned to their strategic requirements, moving beyond traditional ordinary shares.

Under the terms of the new framework, the number of available share classes has been widened to include preference shares, founder shares, restricted shares and tiered share structures such as class A/B/C/D shares, which can be tailored to cover specific restrictions or entitlements as outlined in the company’s memorandum of association. 

The framework also introduces new governance procedures aimed at ensuring transparency around the new offerings and protecting the rights of shareholders.

The DWTC said the changes would supports Dubai’s D33 economic agenda, which aims to position the emirate among the world’s top three urban economies by 2033.

Marie Chowdhry, a financial regulation expert with Pinsent Masons in the Middle East, said the new share roles would boost Dubai’s financial reputation.

“The introduction of multiple share classes is a strategic move that gives companies far greater flexibility in structuring capital and governance,” she said.

“It aligns Dubai with global best practice and signals to investors that the emirate is serious about creating sophisticated, investor-friendly frameworks to support growth and innovation.”