Document background
The Indirect Cost Agreement serves as a crucial document for organizations operating in the UAE that need to establish a formal framework for allocating and recovering shared or overhead costs across multiple entities, projects, or business units. This agreement type is particularly important in complex organizational structures where indirect costs need to be fairly distributed and accounted for in accordance with UAE federal laws and accounting standards. The document provides detailed methodologies for cost allocation, ensures compliance with local regulations, and establishes clear procedures for cost recovery and dispute resolution. Used primarily in situations involving shared services, group operations, or joint ventures, the agreement helps maintain transparency and efficiency in cost management while meeting UAE regulatory requirements for financial reporting and corporate governance.
