As raising capital from Middle East banks is challenging, investors are often driven to find alternative forms of financing, so this liberalisation may prove invaluable.
One powerful method of financing is securitisation, which provides a controlled opportunity to invite people to invest in a structure. UAE securitisation commonly involves transferring an asset into a special purpose vehicle (SPV), which then raises the desired capital by issuing securities, such as shares and bonds. These securitisation SPVs can be structured to be either Shari'ah or non-Shari'ah compliant.
Thanks to the recent change in foreign ownership laws, clients can now feel absolute confidence in using securitisation structures in the UAE – facilitating local transactions with local expertise, in a time-zone that makes it easy for everyone involved.
At Ocorian, we have deep and direct experience of what can be achieved in the DIFC and ADGM. As one example, our UAE team has completed a major UAE securitisation transaction for a local bank, using an SPV structure domiciled in ADGM for the purchase of a portfolio of UAE logistic and residential assets worth US$90 million. Ocorian tailored its offering to provide close assistance through the incorporation of the SPV, dealing with the ADGM registry, onboarding shareholders, coordinating board meetings and liaising with legal counsel.