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What is SPV Special Purpose Vehicle in Dubai?

by | Dec 19, 2025 | Blogs

What is a Special Purpose Vehicle (SPV) entity in Dubai? A Special Purpose Vehicle (SPV) in Dubai is a flexible, low-risk offshore entity used to protect assets, hold investments, and manage financial liability. SPV allows you to manage assets without exposing your company to risk. This guide explains what an SPV is, who is eligible for it, the costs to set up an SPV, and how Dahhan Business Services, the business setup in Dubai helps you to set up an SPV. Whether you’re an investor purchasing a property in Dubai or managing wealth, protecting your assets is one of the biggest priorities. That’s exactly where an SPV comes in.

Special Purpose Vehicle to protecting your assets

What is SPV in Dubai?

An SPV acts like a protective shield around your investments. Just like offshore company formation, this SPV entity simplifies ownership and ensures that your primary business or personal assets remain safe. In the UAE, SPVs have become extremely popular due to:

Flexible corporate tax for selected business activities

Simplified ownership rules

Ease of setting up in free zones like AGDM, DIFC, and RAKEZ

Strong asset-protection laws

If you’re planning to invest in Dubai properties – an SPV can become your smartest financial strategy in 2026 and beyond. In short, SPV entity is just like a “Container”, created to hold something valuable without exposing your main business or personal wealth.

Benefits of an SPV in Dubai

shields the parent company from financial and legal risks

used to hold property, assets, and investments

100% foreign ownership allowed

minimal operational requirements

cost-effective setup option

perfect for wealth management and purchasing properties

Where to Setup a SPV Entity in the UAE?

The most popular and credible places to setup a SPV Entity are:

Abu Dhabi Global Market (ADGM)

Dubai International Financial Centre (DIFC)

Ras Al Khaimah (RAK ICC & RAKEZ)

In addition to these major hubs, the UAE also offers other free zones business setup that provide holding-company frameworks suitable for SPV-style structures. These can be used for simplified asset ownership, internal corporate structuring, family wealth planning, and special investment vehicles.

Each location differs in terms of cost, structure, regulatory environment, and global recognition. Whether it’s holding real estate, managing investments, or protecting assets, SPV is the right choice for you.

Important Notes Before You Choose a Location

SPVs Are Not Commercial Entities

A Special Purpose Vehicle (SPV) is not designed to carry out day-to-day trading activities. It cannot sell goods, provide services, or employ operational staff. Its primary role is to hold assets, isolate financial or legal risk, or support structured investments and financing arrangements.

Local or Regional Connection May Be Required

In some jurisdictions, an SPV must demonstrate a legitimate business connection to the country or surrounding region. This may include holding assets locally, having shareholders or beneficiaries from the region, or being part of a broader investment or ownership structure linked to that market.

Registered Address and Corporate Service Support

Most SPVs are required to maintain a registered office and appoint an approved corporate or professional service provider. However, they generally do not need physical office space, warehouses, or operational facilities like trading companies.

Low or No Capital Requirements

In many jurisdictions, SPVs do not have a mandatory paid-up capital requirement. This makes them a cost-effective option for asset holding, investment structuring, and risk management purposes.

Why SPVs Are Becoming a Top Strategy for UAE Investors 2026

The UAE has become a global hub for asset protection due to:

Stable legal environment

Strong investor protections

Zero personal income tax

Competitive corporate tax for qualifying activities

Growing property market

Increased use of holding structures by GCC families

Whether you’re a single investor or managing a global portfolio, an SPV provides safety, and long-term peace of mind.

How Dahhan Business Services Helps You Set Up an SPV in the UAE

Choosing the right jurisdiction – ADGM, DIFC, RAK ICC, or others – is crucial, and the setup must be done correctly to meet compliance requirements and achieve your financial goals. That’s where Dahhan Business Services becomes your trusted partner. Our experts guide you through every step – from selecting the best jurisdiction to handling documentation, approvals, renewals, banking support, and long-term compliance. We ensure your SPV is structured properly, aligned with UAE regulations, and optimized for maximum protection and efficiency.

Set Up a SPV Company Now,

Setting up an SPV in Dubai is one of the most powerful strategies for investors, property buyers, and business owners who want to protect assets, simplify ownership, and build long-term financial security.

Ready to safeguard your assets with a UAE SPV? Connect with Dahhan Business Services today and build a secure financial future with confidence.

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