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A Credit Facility Agreement is essential for documenting lending arrangements in the UAE banking sector. This agreement type is used when a financial institution extends credit to a borrower, whether for general corporate purposes, specific projects, or asset financing. The document must comply with UAE Federal laws, particularly the UAE Central Bank Law and Commercial Code, and may need to accommodate both conventional and Islamic financing structures. It includes comprehensive provisions covering facility terms, conditions precedent, security arrangements, covenants, and enforcement mechanisms. The agreement is particularly important in the UAE context due to specific local requirements regarding interest calculations, security perfection, and banking regulations.

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and addresses

2. Background: Recitals explaining the context and purpose of the facility

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. The Facility: Details of the credit facility including type, amount, and purpose

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for utilizing the facility

7. Interest: Interest calculation, periods, and payment provisions

8. Repayment: Terms and schedule of repayment

9. Prepayment: Voluntary and mandatory prepayment provisions

10. Representations and Warranties: Borrower's confirmations regarding its status and capacity

11. Covenants: Positive and negative undertakings of the borrower

12. Events of Default: Circumstances constituting default and consequences

13. Changes to Parties: Assignment and transfer provisions

14. Payment Mechanics: Payment procedures, timing, and currency provisions

15. Costs and Expenses: Allocation of fees, costs, and expenses

16. Indemnities: Borrower's indemnification obligations

17. Notices: Communication procedures and contact details

18. Calculations and Certificates: Basis for calculations and evidential value of certificates

19. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions