What is an ADGM SPV?

What is an ADGM SPV?

A Special Purpose Vehicle (SPV), also known as a Special Purpose Company (SPC) or a Special Purpose Entity (SPE), is an entity which is considered ‘bankruptcy- remote’. An SPV is usually a subsidiary which is protected in case the parent company goes bankrupt and considered isolated in case the same happens in reverse. An SPV can be used to finance as well as buy and sell assets which are often held on an off- balance sheet aiming to limit lability isolate financial risk. Setting up an SPV in the UAE can either be done through the Abu Dhabi Global Market (ADGM) or the Dubai International Financial Centre (DIFC).