Dubai World Trade Centre Authority has launched a new regulatory framework allowing companies in its free zone to issue multiple classes of shares, expanding beyond traditional ordinary shares.

The framework enables registered businesses to implement varied share structures including preference shares, founder’s shares, restricted shares and tiered structures through class A/B/C/D categorisation. Companies can now customise these arrangements through their Memorandum of Association to specify different rights regarding dividends, voting powers, transfer conditions and redemption options.

Under the new regulations, businesses must incorporate specific governance measures to protect shareholder rights and maintain transparency in their operations. The framework includes provisions for minority shareholder protection and clear guidelines for implementing different share classes.

The free zone authority has confirmed that while ordinary shares will remain the standard option, registered companies now have the flexibility to adopt more complex share structures. These arrangements can be used for various purposes including investment attraction, succession planning and equity-based compensation.

The free zone currently hosts businesses from more than 40 sectors, operating under regulations that permit full foreign ownership and simplified licensing procedures.

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