Thursday 24 May 2018

Milestone reinforces DIFC’s status as leading financial centre for ISPVs, SPCs in MEASA region

DIFC hits new landmark as special purpose firms top 200

DUBAI, May 14, 2017

Dubai International Financial Centre (DIFC), the leading financial hub in the MEASA region, has announced that 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 ringfence 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. – TradeArabia News Service

Tags: Dubai International Financial Centre | DIFC | SPC |

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