Abu Dhabi Global Market launches Special Purpose Vehicle regime

Abu Dhabi Global Market, the relatively new international financial centre located in the United Arab Emirates’ capital city of Abu Dhabi, has launched a Special Purpose Vehicle regime that it says is aimed at giving corporations, financial institutions, sovereign wealth funds, family offices and individual investors added flexibility in the structuring of financial entities. 

Since the new SPV platform went “live” last Tuesday, more than 50 SPVs have been successfully registered under the regime, the ADGM said in a statement formally announcing the  SPV regime’s launch on Sunday.

The new SPV regime is bench-marked against comparable offerings currently available in rival international jurisdictions in terms of features, cost and ease of set-up, the ADGM said, and thus far has already “gained exceptional industry recognition and business endorsements” from the local as well as international business community.

“Local and regional UAE firms and family businesses are now able to effectively address their business needs and domicile assets and investments via [the new] ADGM SPV regime without going to overseas jurisdictions,” the ADGM said in its statement.

Special Purpose Vehicles are set up by companies for a specific project or task, typically to hold assets, and are not intended to make a profit.

The ADGM is Abu Dhabi’s answer to the highly-successful Dubai International Financial Centre (DIFC). It was formally established (by “Federal Decree”) in 2013, and opened for business in the oil-rich emirate – which is home to the Abu Dhabi Investment Authority (ADIA), one of the richest sovereign wealth funds in the world– in October of 2015.

Abu Dhabi Global Market is located on Al Maryah Island, a 114-hectare “business, leisure and entertainment hub”, which is also home to such hotels as the Rosewood and Four Seasons; what is said to be the “first-ever specialty Cleveland Clinic Hospital outside of the US”; and up-market shopping facilities.

In September, the DIFC introduced its own SPV structuring facility, which it called the “Intermediate Special Purpose Vehicles” regime. It said this would offer an alternate and complementary option  to its own already-established “DIFC Special Purpose Companies” structure, by providing for the structuring of a range of types of investments from the DIFC, including those in which no financing element was involved.

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