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Due Diligence Engagement Letter Template for United Arab Emirates

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Key Requirements PROMPT example:

Due Diligence Engagement Letter

"I need a Due Diligence Engagement Letter for our Dubai-based accounting firm to conduct financial and operational due diligence on a real estate development company, with work starting March 2025 and including specific RERA compliance requirements."

Document background
The Due Diligence Engagement Letter is a crucial document used when initiating a formal due diligence investigation in the United Arab Emirates. It is typically employed before significant business transactions such as mergers, acquisitions, investments, or major commercial partnerships. The document, governed by UAE law, particularly Federal Law No. 2 of 2015 (Commercial Companies Law) and related regulations, establishes the professional mandate for conducting thorough investigations of business, financial, legal, and operational aspects of a target entity. It includes essential elements such as scope of work, methodology, timelines, fee structures, confidentiality obligations, and liability limitations, while ensuring compliance with UAE regulatory requirements and professional standards.
Suggested Sections

1. Letter Header and Date: Professional letterhead, date, and recipient details

2. Introduction: Identification of parties and brief context of the engagement

3. Engagement Overview: Brief description of the purpose of the engagement and the target of due diligence

4. Scope of Services: Detailed outline of the due diligence services to be provided, including areas of investigation

5. Timeline and Deliverables: Expected duration of the engagement and format of deliverables

6. Fees and Payment Terms: Professional fees, payment schedule, and expenses policy

7. Confidentiality: Obligations regarding confidential information and data protection

8. Team and Resources: Key team members and resources to be allocated to the engagement

9. Client Responsibilities: Expected cooperation and information provision from the client

10. Limitation of Liability: Professional liability limitations and disclaimers

11. Governing Law: Specification of UAE law as governing law and jurisdiction

12. Acceptance: Signature blocks and acceptance terms

Optional Sections

1. Conflict Checks: Section addressing potential conflicts of interest, used when working with multiple parties or in sensitive industries

2. Third Party Access: Terms for sharing findings with third parties, needed when other stakeholders require access to due diligence findings

3. Special Industry Considerations: Additional terms specific to regulated industries or special sectors

4. Travel Requirements: Terms regarding on-site visits and travel arrangements, if physical presence is required

5. Translation Services: Terms regarding document translation services, if dealing with multiple jurisdictions

6. Electronic Data Room: Terms regarding the use and access of virtual data rooms, if applicable

7. Termination Rights: Specific termination provisions, if requiring more detail than standard terms

Suggested Schedules

1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of due diligence areas and specific items to be reviewed

2. Schedule B - Fee Structure: Detailed breakdown of fees, including hourly rates, fixed fees, and expenses

3. Schedule C - Team Structure: Detailed information about team members, roles, and responsibilities

4. Schedule D - Timeline: Detailed project timeline with key milestones and deliverables

5. Schedule E - Required Information List: Checklist of documents and information required from the client

6. Appendix 1 - Standard Terms and Conditions: Firm's standard terms and conditions for professional services

7. Appendix 2 - Compliance Requirements: Specific compliance and regulatory requirements applicable to the engagement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































Clauses






























Relevant Industries

Financial Services

Real Estate

Manufacturing

Technology

Healthcare

Retail

Energy

Telecommunications

Professional Services

Construction

Hospitality

Education

Transportation

Mining

Agriculture

Relevant Teams

Legal

Finance

Mergers & Acquisitions

Corporate Development

Risk & Compliance

Strategy

Investment

Due Diligence

Transaction Advisory

Corporate Finance

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Head of Mergers & Acquisitions

Investment Director

Due Diligence Manager

Corporate Finance Director

Managing Partner

Engagement Partner

Transaction Advisory Partner

Legal Director

Compliance Officer

Risk Manager

Financial Controller

Business Development Director

Strategy Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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