Benefits of a special purpose vehicle in ADGM

Benefits of a special purpose vehicle in ADGM

A Special Purpose Vehicle (SPV) provides the following key benefits:

Business Activities

The entity may carry out any manner of passive activities, typically

  • Holding
  • Proprietary Asset Management

The entity may receive any form of passive income in the form of

  • Dividends,
  • Royalties,
  • Commissions,
  • Interest,
  • Rental income

In case the entity will carry out activities resulting in other types of income, it may convert to a fully operating entity.

An SPV is a highly efficient entity when used in conjunction with other structures within a group.


  • 0% corporation tax
  • 0% withholding tax
  • 0% restriction on repatriation of profits

There is a comprehensive list of Double Taxation Treaties in place between the United Arab Emirates and other countries.

Legal Framework

One of the key aspects that make ADGM a jurisdiction of choice for international and local businesses is the legal framework which is based on English common law.

ADGM provides a modern legal framework with a comprehensive list of modern laws, as well as a Court and Arbitration center that sit within ADGM and are represented by renowned judges and arbitrators.

In essence, ADGM provides a similar legal framework to that of the United Kingdom within the Middle East.


There is a limited level of public disclosure for SPV's at ADGM and at a public level, the Directors and Shareholders are disclosed but the Ultimate Beneficial Owners are not disclosed.

A higher level of confidentiality can be achieved by registering the SPV as a Restricted Scope Company (RSC), in which case there is no public record of Directors, Shareholders or Ultimate Beneficial Owners.

Full disclosure of beneficial ownership must be provided to the authority for all types of SPV.


Entities registered at ADGM are fully supported by the local and international banks present in the United Arab Emirates.