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Investment Commitment Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Investment Commitment Agreement

"I need an Investment Commitment Agreement for a UAE-based technology startup, where a venture capital firm will invest AED 5 million in three tranches, with the first tranche to be released in March 2025, including specific performance milestones for each funding round."

Document background
The Investment Commitment Agreement is a crucial document used in the UAE investment landscape when an investor agrees to provide funding to a business entity. It serves as the primary contractual framework governing the investment relationship, typically used in various scenarios including venture capital investments, private equity transactions, and corporate funding arrangements. The agreement must comply with UAE Federal Law No. 19 of 2018 (Foreign Direct Investment Law) and related regulations, while potentially also addressing free zone-specific requirements where applicable. This document outlines key aspects such as investment structure, conditions precedent, governance rights, and regulatory compliance requirements, with particular attention to UAE's foreign ownership restrictions and, where relevant, Sharia compliance principles. The Investment Commitment Agreement is essential for protecting both investor and investee interests while ensuring alignment with UAE's legal and regulatory framework.
Suggested Sections

1. Parties: Identification of the investor(s) and investee(s), including full legal names, registration details, and addresses

2. Background: Context of the investment, relationship between parties, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including investment-specific terminology

4. Investment Commitment: Details of the investment amount, type, and form of investment

5. Investment Terms: Specific conditions, timing, and mechanics of the investment

6. Conditions Precedent: Prerequisites that must be satisfied before investment obligation becomes binding

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Covenants: Ongoing obligations of the parties during the investment period

9. Investment Process: Procedures for making and receiving investments, including drawdown mechanisms

10. Governance Rights: Investor's rights in relation to company management and decision-making

11. Regulatory Compliance: Obligations regarding UAE laws, regulations, and reporting requirements

12. Events of Default: Circumstances constituting breach and corresponding remedies

13. Term and Termination: Duration of agreement and circumstances for early termination

14. Confidentiality: Protection of sensitive information and trade secrets

15. Notices: Communication procedures between parties

16. Governing Law and Jurisdiction: Specification of UAE law and courts' jurisdiction

17. General Provisions: Standard boilerplate clauses including amendment, assignment, and severability

Optional Sections

1. Shariah Compliance: Required when the investment must comply with Islamic finance principles

2. Anti-Dilution Protection: Include when protecting against future dilution of investment value

3. Tag-Along Rights: Optional protection allowing investor to join in sale of shares by other shareholders

4. Drag-Along Rights: Optional right to force minority shareholders to join in sale of company

5. Right of First Refusal: Include when parties want pre-emptive rights on future share transfers

6. Information Rights: Detailed reporting requirements beyond standard governance rights

7. Exit Mechanisms: Include specific provisions for investment exit strategies

8. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

9. Security Arrangements: Required when investment includes security or collateral arrangements

Suggested Schedules

1. Investment Schedule: Detailed breakdown of investment amounts, timing, and tranches

2. Conditions Precedent Checklist: List of all required conditions and their status

3. Corporate Documents: Copies of relevant corporate authorizations and registrations

4. Key Performance Indicators: Metrics and targets related to the investment

5. Calculation Methods: Formulas and methods for calculating various financial terms

6. Form of Drawdown Notice: Template for requesting investment disbursements

7. Shareholders Agreement Terms: Key terms from related shareholders agreement if applicable

8. Compliance Requirements: Detailed regulatory and reporting requirements

9. Security Documents: Forms of any security or guarantee documents

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





































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Relevant Industries

Technology

Real Estate

Financial Services

Healthcare

Education

Manufacturing

Retail

Energy

Infrastructure

Transportation

Hospitality

E-commerce

Islamic Finance

Telecommunications

Media and Entertainment

Professional Services

Industrial

Agriculture

Construction

Relevant Teams

Legal

Finance

Investment

Compliance

Risk Management

Corporate Development

Treasury

Board of Directors

Executive Management

Mergers and Acquisitions

Due Diligence

Corporate Governance

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Investment Officer

Investment Director

Legal Counsel

Corporate Lawyer

Investment Manager

Fund Manager

Managing Director

Finance Director

Compliance Officer

Company Secretary

Board Director

General Counsel

Investment Analyst

Risk Manager

Portfolio Manager

Transaction Manager

Business Development 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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