The team's lineage stretches back to 1991 and the founding of Jordan Grand Prix by Eddie Jordan at Silverstone. The Midland group purchased the Silverstone-based squad in 2005, renaming it Midland F1 in 2006. Less than two years after Alex Shnaider had bought the team from Jordan, rumours of a further sale circulated through the paddock. On 9 September 2006 it was confirmed that Spyker Cars, a Dutch manufacturer of hand-built sports cars, had purchased the team for $106.6 million. With the change of ownership came a change of identity: the cars adopted an orange and silver livery for the final three races of 2006 — orange being the national colour of the Netherlands — and the entry was renamed Spyker MF1 Racing to comply with FIA regulations that prohibit a full team-name change mid-season.
Spyker F1 Team was only the second Formula One constructor to carry Dutch registration, after Boro Racing, which had competed in the 1976 and 1977 seasons.
Colin Kolles, who had served as team principal at Midland, retained that role into 2007. Michiel Mol joined as Director of F1 Racing and board member, and Mike Gascoyne was appointed Chief Technology Officer. The team switched from Toyota power units — which were transferred to Williams — to customer 2006-specification Ferrari engines. Car numbers 20 and 21 were assigned to the entry, with Christijan Albers confirmed at launch and Adrian Sutil, a 2006 test driver, named as his team-mate.
In March, a sponsorship agreement with Abu Dhabi entities Etihad Airways and Aldar Properties gave the entry its official season-long title. Four test and reserve drivers were also signed: Adrián Vallés, Fairuz Fauzy, Giedo van der Garde, and Markus Winkelhock.
On 10 July, Albers was released mid-season after the sponsorship funds that were to underwrite the team's development programme failed to materialise. Director Michiel Mol described it as one of the toughest decisions of his career. Christian Klien tested with the team shortly after, but it was Winkelhock who replaced Albers for the 2007 European Grand Prix. During that race at the Nürburgring, Winkelhock — having started on wet tyres while the field ran slicks — led briefly, becoming the only driver ever to head a Grand Prix in a Spyker. He did not retain the race seat, which subsequently passed to Sakon Yamamoto.
A B-Spec upgrade initially failed the FIA rear crash test ahead of the Turkish Grand Prix, but the revised car cleared the test in time to race at Monza.
The team's sole points finish came on 30 September at the Japanese Grand Prix at Fuji. Adrian Sutil crossed the line ninth, but was elevated to eighth — and into the points — when stewards issued a 25-second post-race penalty to Toro Rosso's Vitantonio Liuzzi for passing Sutil under a yellow flag on lap 55. The single point represented the entire return from 17 rounds of racing.
On 14 August, Spyker Cars disclosed that financial pressures might force a sale of all or part of the team. Following shareholder approval, the team was sold to a consortium called Orange India, led by Indian businessman Vijay Mallya and existing board member Michiel Mol. Mallya attended the Chinese Grand Prix as the incoming owner. The team was renamed Force India for the 2008 season, carrying forward the Silverstone infrastructure and personnel that had originated with Jordan Grand Prix seventeen years earlier.