{"id":109337,"date":"2025-11-11T00:00:00","date_gmt":"2025-11-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/dwtc-freezone-allows-firms-to-issue-multiple-share-classes-under-new-framework\/"},"modified":"2025-11-11T00:00:00","modified_gmt":"2025-11-11T00:00:00","slug":"dwtc-freezone-allows-firms-to-issue-multiple-share-classes-under-new-framework","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/11\/11\/dwtc-freezone-allows-firms-to-issue-multiple-share-classes-under-new-framework\/","title":{"rendered":"DWTC FreeZone allows firms to issue multiple share classes under new framework"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>DWTC firms can now issue multiple share classes:<\/strong> The Dubai World Trade Center Authority (DWTCA) introduced a new framework allowing companies registered in the DWTC FreeZone to issue different classes of shares beyond standard ordinary shares, according to a <a target=\"_blank\" href=\"https:\/\/www.dwtc.com\/en\/press\/dwtca-introduces-multiple-share-class-framework\/\" style=\"\" rel=\"noopener\">statement<\/a>. The reform expands capital structuring options for registered firms effective immediately.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What this means: <\/strong>Firms can now issue a wider variety of shares, beyond ordinary shares which offer all shareholders equal rights, including preference, restricted, and tiered shares ranging from A to D, each affording a different level of rights to shareholders. A company may set and define specific details \u2014 such as distinct voting, dividend, transfer, redemption, or conversion rights for each class \u2014 by amending its Memorandum of Association, providing more flexibility in governance and investment structures. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The rules cater to founders too:<\/strong> The framework enables equity-based incentive schemes and succession planning mechanisms, particularly relevant for startups and family-owned businesses. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Requirements: <\/strong>Companies must disclose class-specific rights in their constitutional documents and implement transparency safeguards to protect minority shareholders. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The rationale: <\/strong>The update aligns DWTC FreeZone\u2019s rules with global jurisdictions that permit differentiated ownership and control structures. It follows DWTCA\u2019s <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/a6b32db8-aa7b-404f-aa69-83403a0c9051\/this-morning:-sidara-makes-final-play-for-wood-group-%2B-president-in-china\" style=\"\" rel=\"noopener\">2024 jurisdiction extension to One Za\u2019abeel<\/a>, which expanded its regulatory remit, along with another regulatory framework update <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/2a795f0d-27fa-4956-b4f1-beb70404bfa9\/new-permit-allows-dubai-freezone-firms-to-expand-to-the-mainland\" style=\"\" rel=\"noopener\">from October<\/a> which allowed freezone firms to operate in mainland Dubai.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Under the new rules, companies can issue preference, founder\u2019s, restricted, and tiered shares<\/p>\n","protected":false},"author":1,"featured_media":109338,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1561],"tags":[87,7,135,160],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-109337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulation-watch","tag-dubai","tag-enterpriseam-uae","tag-regulation","tag-regulation-watch","wpautop","entry"],"acf":{"mongo_id":"f7b892aa-42fb-4ea0-a7d3-46444abb872f","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/10\/1097.jpg","photo_position":"above","homepage_title":"","full_issue_title":"DWTC FreeZone allows firms to issue multiple share classes under new framework","related_issue":[109330],"teaser":"Under the new rules, companies can issue preference, founder\u2019s, restricted, and tiered shares","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/11\/.8ff0638b-a2a6-4be4-9e75-802c7efb7639.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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