What is
an SPV?

What are SPVs used for?

Ring-fencing one asset from another's liabilities; holding shares in a venture-backed company; owning real estate, vessels or aircraft; joint ventures where each party wants a clean entity; and layering under family-office structures and foundations. In venture deals, the ADGM SPV has become the region's default cap-table vehicle.

Choosing the UAE form

ADGM SPV — common-law, fast, internationally recognised, needs a UAE nexus. DIFC prescribed company — the DIFC's equivalent with qualifying-purpose conditions. RAK ICC — the lowest-cost registry, familiar in offshore-style holding. The choice follows what sits above and below the vehicle: courts, banking, substance and cost.

Does a UAE SPV pay Corporate Tax?

An SPV is a juridical person and registers like any company, but a passive holding SPV typically earns dividends and capital gains that are exempt under the participation exemption, or qualifying income at 0% where free-zone conditions are met. SPVs inside Family Foundation structures can be made tax-transparent by election. The treatment is designed, not automatic.

Can an SPV open a UAE bank account?

Yes, though banks apply enhanced diligence to passive vehicles: expect questions on purpose, source of funds and the people behind it. A clean structure chart and a real UAE nexus materially improve onboarding speed.

What does an ADGM SPV cost?

Among the cheapest common-law vehicles anywhere: modest incorporation and annual fees (typically low thousands of US dollars all-in with an agent), no office requirement, and light ongoing compliance — which is precisely why it became the regional default for holding structures.