Abu Dhabi Global Market (ADGM) – Special Purpose Vehicles (SPV) And Foundations

S
STA Law Firm

Contributor

STA Law Firm logo
STA is a full practice law firm headquartered in Dubai with offices across UAE (Abu Dhabi, Dubai, Sharjah and Ras Al Khaimah) and overseas (Bahrain, Delhi, Doha, Luxembourg, Moscow, Portugal and Mumbai). We work alongside several groups of companies within the Oil and Gas, Maritime, Logistics, Real estate, Construction, Hospitality and Healthcare sectors in the region and internationally providing them with our signature bespoke and cogent legal advice. We successfully represent our clients at various courts and arbitration centers across the UAE. We are also approached by several investors internationally who wish to find suitable business partners in the region.
As a company within the Middle East, there are many seemingly insurmountable risks, such as financing, asset transfers or high-risk opportunities, which risks previously held no viable risk
United Arab Emirates Wealth Management

As a company within the Middle East, there are many seemingly insurmountable risks, such as financing, asset transfers or high-risk opportunities, which risks previously held no viable risk mitigation alternatives. However, the ADGM now supplies a competitive entity for which mitigates such risks. The risks as abovementioned could include, for example, should a company wish to engage in a project that is considered to be high-risk – such as the purchasing of an aircraft – such company may utilize the creation of an SPV to isolate this project risk from the parent company. In what follows will be a comprehensive breakdown of the many advantages of SPV's as well as their practicality and ease of company formation in ADGM.

At the outset, it is pertinent to thoroughly examine what an SPV is and why a company would utilize such an entity. An SPV is a legal establishment which is formed to fulfil a limited, specific or temporary purpose. They are entities distinctively used by companies to isolate the parent company from a particular financial unpredictability. The official definition of an SPV is "a fenced organisation having limited predefined purposes and a legal personality."

The ADGM has stepped into the forefront in respect of their SPV regime, offering a dynamic and extensive scheme which caters to numerous industry sectors and a range of uses.

In the below table is a depiction of the typical uses of SPVs

To read the full article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More