ADGM Removes Nexus Requirements for Special Purpose Vehicles
A Regulatory Update That Enhances Structuring Flexibility
ADGM has officially removed the Nexus Requirement for Special Purpose Vehicles (SPVs), eliminating the previous obligation to demonstrate a connection to ADGM, the UAE, or the GCC. This update simplifies the establishment of non-regulated SPVs and strengthens ADGM's position as a leading jurisdiction for international structuring.
FASTER SETUP
Faster, cleaner onboarding.
GREATER FLEXIBILITY
For international holding and asset-protection structures.
REDUCED OVERHEAD
For international holding and asset-protection structures.
WHAT WAS PREVIOUSLY REQUIRED
Under Licensing Conditions Rule 22, applicants had to demonstrate a qualifying "nexus" through one of the following:
Ownership or control
by a UAE/GCC company, family office, or individual.
Holding assets
located in the UAE or GCC.
Facilitating transactions
that provided real or economic benefit to the UAE.
Issuing securities
intended for listing or trading on an ADGM-recognised exchange or platform.
Structures with no UAE or GCC connection — including foreign, non-resident entities holding offshore assets — did not meet the Nexus Requirement, even if appointing an ADGM or UAE-based CSP.
WHAT HAS CHANGED?
SPVs no longer need to evidence local ties. This means:
Faster, cleaner onboarding.
Greater flexibility for international holding and asset-protection structures
Reduced administrative burden for cross-border planning
WHY THIS MATTERS?
The removal of the Nexus Requirement aligns ADGM with global best practice and enhances its competitiveness for international SPVs. Clients benefit from a more accessible, efficient, and cost-effective structuring environment.
MABA Corporate Services continues to advise on SPV setup, governance, and ongoing administration under the updated framework.
For guidance on how this change may impact your structure or future planning, our team is ready to assist.
OUR SUPPORT
LET'S DISCUSS
Get in touch with our team to explore how this development supports your goals.
