Newsroom
In a surprising trend, billionaires including Zhao Changpeng, the Adani family, Ray Dalio, and Vladimir Lisin are flocking to Abu Dhabi's international financial center, establishing special purpose vehicles (SPVs) to safeguard their fortunes.
The number of SPVs on the Abu Dhabi Global Market (ADGM) has skyrocketed from 46 in 2016 to over 5,000 today, reflecting a global shift in wealth protection.
These legal entities, famously utilized by Michael Milken in the '80s, act as financial shields, insulating the rich from risks. While the source of the assets and the reasons behind the move remain undisclosed, this influx underscores a transformation in global wealth protection strategies.
Abu Dhabi's SPVs, acting as wealth management holding companies, offer a haven for various assets, from real estate to shares. This surge in capital is reshaping the UAE's $509 billion economy, steering it away from oil dependence.
At a time when traditional tax havens face increased scrutiny, Abu Dhabi lures the affluent with its attractive features, allowing them to shield assets and benefit from the UAE's double tax treaties, potentially reducing their tax burdens.
The UAE's international allure extends beyond financial perks, offering residency permits and even passports to significant investors. Notably, figures like Zhao Changpeng find appeal in the UAE's crypto-friendly policies, despite legal challenges.
As global financial dynamics evolve, Abu Dhabi's rise as a financial powerhouse challenges traditional havens, providing a compelling alternative for the world's wealthiest individuals seeking to safeguard their riches in an ever-changing landscape.
