Five factors to consider when selecting the UAE for your SPV
The United Arab Emirates (UAE) has positioned itself as a significant player in the global economy through rapid modernisation and the proactive implementation of pro-business policies. The UAE is also proving to be an increasingly compelling destination for international investment and securitisation. While SPVs can serve numerous purposes in the UAE, they are most commonly used for the structuring of real-estate investments, capital raising and intellectual property management.
Here are the top five reasons why the UAE is a leading choice for entity incorporation and should be on your list of preferred jurisdictions.
The UAE is home to two of the world’s most sophisticated financial services centres: the Dubai International Finance Centre (DIFC) and the Abu Dhabi Global Market (ADGM). Together, these centres form a business-friendly, efficient and legally robust entity framework. Both have emerged as leading jurisdictions for establishing SPVs, offering a favourable legal structure based on English common law.
Dubai boasts a highly business-friendly regulatory environment, world-class infrastructure, and straightforward procedures. It ranks first in MENA and 16th globally on the world bank’s ease of doing business index. The D33 economic agenda seeks to cement its position among the top four global financial hubs.
The UAE has a well-established legal & regulatory framework to govern SPVs, ensuring transparency, investor protection and alignment with international best practices. It features both civil and common law frameworks, providing flexibility through the application of civil law in the mainland and free zones, and common law in the DIFC & ADGM. Financial regulators in Dubai and the UAE align closely with international standards, ensuring transparency and security for foreign investors.
Businesses benefit from 100% foreign ownership in most sectors, unrestricted repatriation of capital and profits, and access to competitive tax regimes.
SPVs can offer tax efficiency and structuring benefits. Depending on their legal structure and operations, corporate entities are eligible for favourable tax treatments, which can enhance the overall profitability and return on investment for stakeholders. The UAE has a vast network of bilateral investment protection agreements and double taxation treaties, including with most major financial hubs and G20 members.
How can Ocorian help?
We act as an invaluable partner for businesses aiming to set up a SPVs in the UAE, leveraging the country's dynamic financial landscape, regulatory support, and world-class infrastructure. We manage the documentation and application process for licensing and bank account opening, ensuring that the SPV meets all legal requirements from the outset. Once established, our expertise allows businesses to focus on their core activities while ensuring that their SPV is compliant, efficient, and optimally structured for success in the region.
To learn more about incorporating a company in the UAE, contact our team today and download our useful jurisdictional SPV guide.
