It is widely known that many wealthy people all over the world have preferred to keep assets abroad. Destination usually ranged from the Cayman Islands, the British Virgin Islands, Switzerland. However, now that things changed, Abu Dhabi is gradually acquiring popularity among high net worth individuals, Bloomberg writes.
Details. In 2016, there were only 46 so-called special purpose vehicles (SPVs) in the country, which were used to secure assets. Nowadays they number over 5,000.
SPV is a separate legal entity or a company. It usually contains equity and property.
Billionaire Ray Dalio, the co-founder of Binance Changpeng Zhao, billionaire Indian family of Adani, Russian businessman and steel magnate Vladimir Lisin are reported to have set up SPVs this year. Moreover, the city is progressively gaining approval and interest of the royal families. Thus, National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, the brother of the President, has also set up such companies.
Speaking about Abu Dhabi's attractiveness, it is worth mentioning that the UAE offers its residents asset protection, confidentiality and low taxes. Additionally, investors have opportunities to obtain long-term residence permits, and sometimes, even UAE citizenship.
All in all, the free zone in the UAE is very appealing to rich stratum of society thanks to a range of reasons, such as use of English common law, strong protection of an investor, and, undoubtedly, low taxation. Some people were attracted by the absence of any sanctions and restrictions. More precisely, the UAE restrained from any sanctions against Russia, while the USA, UK, EU countries strengthened various restrictions. Lastly, SPVs has no requirement on minimum share capital, no national restrictions. Shareholders possess the ease of share transfer.
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