You can create a Special Purpose Vehicle (SPV) in the UAE in straightforward steps. First, choose a suitable jurisdiction, then gather the required documents, submit an online application, and pay the necessary fees.
A Special Purpose Vehicle (SPV) in the UAE is a separate legal entity established for a defined purpose – typically to hold assets, manage investments, or isolate financial risk. These structures are popular among investors, multinational corporations, and family offices seeking a secure, tax-efficient, and compliant way to manage their holdings.
By separating assets and liabilities from the parent company, SPVs provide greater protection and flexibility in corporate structuring. They’re widely used for real estate investments, intellectual property ownership, and multi-jurisdictional ventures. The UAE’s well-regulated financial centers – such as ADGM, DIFC, and RAK ICC – have made SPVs a preferred choice for entrepreneurs and global investors looking to safeguard wealth and streamline cross-border transactions.
In this guide, you’ll learn everything you need to know about setting up a Special Purpose Vehicle (SPV) in the UAE – including how they work, the step-by-step setup process, key jurisdictions, common uses, required documents, costs, benefits, and how Creative Zone can support you throughout.
What is a Special Purpose Vehicle (SPV)?
An SPV is a separate legal entity created for a specific business objective, most commonly to protect assets, structure investments, or manage financial risk.
In simple terms, an SPV acts as a “ring-fenced” company that isolates particular assets or liabilities from the parent business or individual owner. It operates independently, with its own legal identity, allowing investors and corporations to carry out defined activities while safeguarding their core assets from external exposure.
In the UAE, SPVs are widely used to hold ownership of real estate, shares in other companies, or valuable intellectual property such as patents and trademarks. They are also used by family offices and high-net-worth individuals (HNWIs) to manage wealth, consolidate holdings, and plan for succession.
Why set up an SPV in the UAE?
Setting up an SPV in the UAE helps with asset protection and risk segregation, ownership structuring and succession planning, tax efficiency and privacy, and ease of compliance and management.
Asset protection and risk segregation
An SPV isolates specific assets or projects from the parent company or investor, creating a legal barrier that limits financial exposure. If the parent business faces liabilities, creditors, or operational challenges, the SPV’s assets remain protected. This segregation of risk is a key reason multinational corporations, investment funds, and family offices choose SPVs in the UAE: they allow you to safeguard valuable holdings while maintaining control over operations and outcomes.
Ownership structuring and succession planning
SPVs are highly effective tools for ownership consolidation, holding family assets, and estate planning. This simplifies succession planning, ensuring that ownership transitions smoothly to beneficiaries without legal complications.
Tax efficiency and privacy
SPVs benefit from the country’s 0% corporate tax regime (subject to qualifying conditions) and full repatriation of capital and profits. They also offer enhanced confidentiality: ownership and financial details are kept private within the regulatory framework.
Ease of compliance and management
SPVs are straightforward to manage, with minimal operational and staffing requirements compared to trading companies. This simplicity allows investors to maintain lean, efficient structures while benefiting from the UAE’s robust regulatory oversight and internationally recognized corporate governance standards.
Where can you establish an SPV in the UAE? (Key jurisdictions)
You can establish an SPV in several leading UAE jurisdictions. The most popular options include Abu Dhabi Global Market (ADGM), Dubai International Financial Centre (DIFC), and Ras Al Khaimah International Corporate Centre (RAK ICC).
Abu Dhabi Global Market (ADGM)
ADGM is one of the UAE’s leading jurisdictions for SPV formation. It operates under an independent legal framework based on English common law, making it highly trusted by international investors.
Dubai International Financial Centre (DIFC)
Operating under its own independent legal system based on English common law, DIFC offers a sophisticated environment for holding companies, investment vehicles, and cross-border ownership structures.
Ras Al Khaimah International Corporate Centre (RAK ICC)
RAK ICC provides one of the most cost-effective SPV solutions in the UAE. It is best suited for individuals and corporations looking to hold assets or manage international investments without the higher costs associated with financial free zones.
Common uses of SPVs in the UAE
The main applications for SPVs in the UAE are:
- Holding real estate assets
- Group or subsidiary structuring
- Securitization or investment holding
- Intellectual property or trademark holding
- Family wealth and succession planning
Documents required for SPV formation in the UAE
Key documents required to establish an SPV in the UAE include:
- Passport copies of all shareholders and directors – these confirm the identity of individuals involved in the SPV.
- Proof of address – to verify their residential address
- Memorandum and Articles of Association (MOA/AOA) – these define the SPV’s structure, objectives, and internal governance rules.
- Business plan or statement of purpose – this is used to outline the SPV’s purpose.
- Resolution of parent company (if applicable) – if the SPV is being established by an existing company, a board, or shareholder resolution authorizing its formation, this confirms corporate approval and identifies the appointed representatives.
Step-by-step process to set up an SPV in the UAE
Setting up an SPV in the UAE involves selecting the right jurisdiction, preparing the necessary documents, submitting your application, and obtaining approval and your operating license.
Step 1: Choose the right jurisdiction
The first step is deciding where to establish your SPV. The most popular jurisdictions are ADGM, DIFC, and RAK ICC, each offering 100% foreign ownership, strong legal protection, and tax advantages.
Your choice should depend on the SPV’s intended activities, the type of assets it will hold, and the financial or legal services you require.
Creative Zone’s team of expert consultants will guide you through every step of the process, ensuring a smooth and compliant SPV setup.
Step 2: Prepare the required documentation
Next, gather all the necessary documents for your SPV application. You’ll need the Memorandum of Association (MOA), a power of attorney, and a commercial register extract if corporate shareholders are involved. Add a declaration from the SPV’s managing director, plus copies of passports, Emirates IDs, and certified corporate documents for all shareholders and directors. Finally, make sure you have a registered office address ready to complete your application.
Step 3: Submit the application
Once all documents are ready, submit your application through the jurisdiction’s official online portal. The process is fully digital, allowing you to upload documents, review requirements, and make secure payments.
Step 4: Await approval and receive your license
After review, the regulatory authority will issue approval and send your SPV license via email. This document officially registers your entity and confirms your compliance with the jurisdiction’s framework.
Cost of setting up an SPV in the UAE
The cost of setting up an SPV in the UAE typically ranges between AED 8,000 and AED 20,000, depending on the chosen jurisdiction, service provider, and scope of support required.
Here is a breakdown of the main costs involved:
- Registration and incorporation fees – These fees vary, typically starting from AED 5,000.
- Name reservation and government fees – A small fee is payable to reserve your company name and cover administrative government charges.
- Annual renewal fees – These usually range between AED 3,000 and AED 7,000.
- Office address or registered agent fee – These annual fees for service typically range from AED 2,000 to AED 5,000.
Benefits of setting up an SPV in the UAE
Setting up an SPV in the UAE offers investors, corporations, and family offices legal asset protection, international credibility and recognition, access to the UAE’s double-tax treaties, simplified compliance and reporting, and full foreign ownership and full profit repatriation.
Legal asset protection
An SPV allows you to isolate assets and liabilities within a distinct legal structure, ensuring that risks from one entity do not affect another. This “ring-fencing” of assets provides an extra layer of security against potential claims, creditors, or operational losses.
International credibility and recognition
SPVs established in ADGM and DIFC benefit from internationally recognized legal systems based on English common law. This gives investors and institutions around the world confidence in the structure’s transparency, governance, and enforceability – essential for cross-border transactions and partnerships.
Access to UAE’s double tax treaties
The UAE has an extensive network of double taxation treaties with more than 130 countries. SPVs incorporated in the UAE can leverage these agreements to reduce or eliminate withholding tax on cross-border dividends, interest, and royalties.
Simplified compliance and reporting
SPVs have minimal operational and reporting requirements compared to trading or service companies. They’re not permitted to engage in commercial activity, which reduces the need for audits, staffing, and complex regulatory filings.
100% foreign ownership and full repatriation
SPVs in UAE jurisdictions such as ADGM, DIFC, and RAK ICC allow 100% foreign ownership, giving investors full control over their assets. In addition, all profits, dividends, and capital can be repatriated freely without restrictions.
Why choose Creative Zone for SPV setup in the UAE
Creative Zone offers expert guidance on establishing SPVs in the UAE’s leading jurisdictions, including ADGM, DIFC, and RAK ICC. With over a decade of experience in company formation and regulatory advisory, Creative Zone helps investors, entrepreneurs, and family offices navigate complex corporate structures with clarity and confidence.
Our team provides end-to-end support throughout the entire SPV formation journey – from selecting the right jurisdiction and preparing documentation to managing bank account openings and ensuring full compliance with local regulations. Whether your goal is asset protection, succession planning, or global investment management, we make the process simple, seamless, and fully compliant.
As one of the UAE’s most trusted advisory firms, Creative Zone has helped thousands of clients successfully establish and maintain their corporate entities. If you’re considering forming an SPV or any other structure, our specialists in business setup in Dubai are ready to help you structure your venture for long-term success. Contact our office today to get started.
Frequently asked questions
What is the purpose of an SPV in the UAE?
An SPV in the UAE is established to isolate financial and legal risks, protect assets, and manage investments efficiently. It acts as a separate legal entity that holds ownership of assets such as property, shares, or intellectual property.
What are the differences between ADGM, DIFC, and RAK ICC SPVs?
ADGM and DIFC are financial free zones with frameworks based on English common law, ideal for institutional and international investors. RAK ICC offers a more cost-effective alternative, suitable for individuals and businesses seeking asset holding or family wealth management structures.
How much does it cost to set up an SPV in the UAE?
The cost typically ranges between AED 8,000 and AED 20,000, depending on the jurisdiction, documentation requirements, and professional services used.
Can foreigners own SPVs in the UAE?
Yes. SPVs in the UAE allow 100% foreign ownership, giving investors full control over their assets and business structure. Profits and capital can also be repatriated freely.
Are SPVs subject to UAE corporate tax?
SPVs may qualify for 0% corporate tax, provided they meet specific regulatory and operational conditions. Most SPVs are non-trading entities, which generally keeps them outside the corporate tax framework.
