Hi Michael,

I'm Shilpa Sharma, and yes, a UAE Free Zone company can set up a Special Purpose Vehicle (SPV). The SPV is established as a separate legal entity, not as a branch or extension of your existing company.

Businesses typically use SPVs to hold assets such as shares, intellectual property, or investments while keeping them separate from the risks of their operating business. This structure helps ring-fence specific assets and liabilities, making it a popular choice for investment holding and corporate structuring.

Most SPVs are registered in specialised jurisdictions such as Abu Dhabi Global Market (ADGM) or the Dubai International Financial Centre (DIFC), although certain commercial free zones, including DMCC and JAFZA, also offer suitable structures depending on your objectives.

One important thing to remember is that an SPV is designed to be a passive entity. It isn't meant to carry out day-to-day trading, provide services to customers, or employ operational staff. Instead, it serves as a vehicle to own and manage assets or investments.

Before choosing where to register your SPV, it's worth considering what you want it to achieve. The ideal jurisdiction can vary depending on whether you're holding shares, protecting intellectual property, or structuring investments for future growth.