Special Purpose Vehicles (SPVs) in Jebel Ali Free Zone Authority (JAFZA) are widely used in the UAE for investment structuring, risk isolation, joint ventures, and shareholder management. They are regulated under Federal Decree-Law No. 32/2021 and the JAFZA Regulations 2016, and must comply with beneficial ownership, economic substance, and corporate tax rules. JAFZA SPVs are valued for their strong local banking recognition and access to the UAE’s double tax treaty network, making them highly effective for cross-border investments and asset protection. They provide governance flexibility through multiple share classes and tailored articles of association, but require careful planning, enhanced due diligence, and proper documentation to meet compliance and banking requirements. Compared to offshore jurisdictions such as Cayman or BVI, JAFZA SPVs offer greater credibility and acceptance, balancing flexibility, tax efficiency, and regulatory obligations.
Written by Aboubaker Karmustaji and Tanya Visakan.
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This article was first published by LexisNexis Middle East.
16 September, 2025
