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Using ADGM SPVs as passive holding companies
This episode is also available as a blog post: https://10leaves.ae/publications/adgm/adgm-spvs-as-holding-companies
Why hold assets in an ADGM SPV? What are the benefits and uses?
Flexibility of ownership
Shareholding in operational companies:
Holding shares in operational companies in the name of an SPV, instead of in individual names, helps better manage business-related liabilities, and also provide for potential investments in the business. The UAE mainland, for instance, has a 51%/49% share structure for trading entities. These shares are usually held in individual names.
Holding these shares in the name of ADGM SPVs can provide many benefits, including more robust arrangements, under Common Law, for the relationship between the UAE National and the expatriate partners.
Can ADGM SPVs hold property?
Yes! Investors who wish to purchase property, or have already purchased property, can use ADGM SPVs to hold these assets.
We have seen investors using one SPV per property, primarily when such assets are bought for onward sale. Others use ADGM SPVs to consolidate their portfolios by region (in this case, by Emirate), or by type of property (residential, commercial) etc.
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By 10 LeavesThis episode is also available as a blog post: https://10leaves.ae/publications/adgm/adgm-spvs-as-holding-companies
Why hold assets in an ADGM SPV? What are the benefits and uses?
Flexibility of ownership
Shareholding in operational companies:
Holding shares in operational companies in the name of an SPV, instead of in individual names, helps better manage business-related liabilities, and also provide for potential investments in the business. The UAE mainland, for instance, has a 51%/49% share structure for trading entities. These shares are usually held in individual names.
Holding these shares in the name of ADGM SPVs can provide many benefits, including more robust arrangements, under Common Law, for the relationship between the UAE National and the expatriate partners.
Can ADGM SPVs hold property?
Yes! Investors who wish to purchase property, or have already purchased property, can use ADGM SPVs to hold these assets.
We have seen investors using one SPV per property, primarily when such assets are bought for onward sale. Others use ADGM SPVs to consolidate their portfolios by region (in this case, by Emirate), or by type of property (residential, commercial) etc.