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Financial Contract for United Arab Emirates

Financial Contract Template for United Arab Emirates

A comprehensive financial contract governed by UAE law, incorporating both federal and emirate-specific regulations, designed to document financial arrangements between parties. The document adheres to UAE Civil Code requirements and Central Bank regulations, with optional provisions for Sharia compliance where required. It includes detailed terms for financial obligations, security arrangements, regulatory compliance, and risk mitigation measures, all structured to be enforceable under UAE jurisdiction and compatible with local business practices.

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What is a Financial Contract?

This Financial Contract template is designed for use in the United Arab Emirates, serving as a foundational document for various financial arrangements including loans, facilities, and financing agreements. It incorporates mandatory provisions required by UAE federal laws, including the UAE Civil Code and UAE Commercial Transactions Law, while providing flexibility to accommodate both conventional and Islamic financing structures. The document is particularly relevant for transactions involving UAE-based entities or assets, requiring compliance with UAE Central Bank regulations and local commercial practices. It includes provisions for security arrangements, regulatory compliance, and dispute resolution specific to the UAE legal framework, making it suitable for both domestic and cross-border transactions with a UAE nexus.

What sections should be included in a Financial Contract?

1. Parties: Identification of the contracting parties with full legal names, addresses, and registration details as per UAE requirements

2. Background: Context of the financial arrangement and relationship between parties

3. Definitions: Comprehensive definitions of financial and legal terms used in the agreement

4. Facility/Financial Terms: Core financial provisions including amount, purpose, and key commercial terms

5. Conditions Precedent: Prerequisites that must be satisfied before the financial obligations become effective

6. Representations and Warranties: Standard and financial-specific representations by parties

7. Payment Terms: Detailed payment obligations, schedules, and mechanics

8. Interest/Profit Rate: Interest or profit rate calculations and payment terms (structured to ensure Sharia compliance if required)

9. Security: Details of any security or collateral arrangements

10. Covenants: Financial and general covenants, including reporting requirements

11. Events of Default: Comprehensive list of default events and consequences

12. Remedies: Rights and remedies available to parties upon default or breach

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

14. Notices: Communication procedures and contact details

15. Execution: Execution blocks meeting UAE formal requirements

What sections are optional to include in a Financial Contract?

1. Sharia Compliance: Required for Islamic financial products, including relevant principles and compliance statements

2. Regulatory Compliance: Specific section for regulated financial products requiring detailed compliance provisions

3. Tax Provisions: Required when transaction has significant tax implications or cross-border elements

4. Assignment and Transfer: Include when transfer or syndication rights are relevant

5. Agency Provisions: Required for syndicated facilities or where agents are involved

6. Account Bank Provisions: Required when specific account management terms are needed

7. Insurance: Required when insurance of assets or risks is part of the arrangement

8. Force Majeure: Optional but recommended for longer-term financial arrangements

What schedules should be included in a Financial Contract?

1. Payment Schedule: Detailed breakdown of payment dates, amounts, and calculations

2. Security Documents: Forms of security documents and perfection requirements

3. Conditions Precedent Documents: List of required documents and conditions to be satisfied

4. Form of Notices: Standard form notices for drawdowns, transfers, etc.

5. Financial Covenants Calculations: Detailed methodology for financial covenant calculations

6. Fee Schedule: Breakdown of all applicable fees and charges

7. Reporting Requirements: Templates and requirements for periodic financial reporting

8. Know Your Customer Requirements: List of required KYC documents and verification procedures

Authors

Alex Denne

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

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




















































Clauses





































Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Trading

Technology

Healthcare

Education

Retail

Hospitality

Infrastructure

Energy

Transportation

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Finance

Credit

Operations

Commercial

Strategy

Investment

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Corporate Finance Manager

Financial Controller

Investment Manager

Credit Manager

Banking Relationship Manager

Corporate Secretary

Business Development Manager

Finance Manager

Transaction Manager

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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