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16 April 2024

DIFC registers more than 200 intermediate special purpose vehiclesand companies

Pic: WAM


Dubai International Financial Centre (DIFC), has reaffirmed its commitment to innovation as the number of its registered intermediate special purpose vehicles (ISPVs) and special purpose companies (SPCs) crossed the 200 mark.

DIFC provides ISPV and SPC structures that support a broad spectrum of industry sectors including transport, education and energy. Clients include regional companies, family businesses and international conglomerates.

ISPVs are used by a range of businesses, particularly those that are vulnerable in foreign markets. They often serve as a succession planning tool for private or family companies. In addition, fund management companies use them to ring fence assets and liabilities from other fund structures within the same company group.

SPCs play a pivotal role in financial markets through offering a new legal entity as a company limited by shares, incorporated under DIFC law to arrange specific structured financial transactions.

Typically, SPCs are used by clients for either structured Islamic or conventional financial transactions (such as securitisation, structured debt or sukuk issuance), as a loan facility or finance transaction as part of a corporate acquisition.

Arif Amiri, Chief Executive Officer of DIFC Authority, said, "DIFC is now home to more than 200 SPCs and ISPVs that are becoming increasingly popular as financing structures, particularly in the Middle East, Asia and Africa. This milestone reinforces the financial hub’s status as a domicile of choice for innovative structured finance transactions."

An ideal destination for ambitious international businesses, DIFC continues to play a pivotal role in meeting the growing financial services needs of the Middle East, Africa and South Asia region.