Document background
In the UAE's dynamic business environment, a Memorandum of Intention serves as a crucial preliminary document for parties exploring potential business relationships or transactions. This document type is particularly valuable in the UAE context where business relationships often require careful structuring to comply with local laws and customs. It allows parties to outline their intentions and planned cooperation while maintaining flexibility before entering into fully binding agreements. The document typically includes key terms, proposed structure, and timeline, while clearly distinguishing between binding and non-binding provisions. Given the UAE's unique legal framework combining civil law and Sharia principles, the MOI must be carefully drafted to ensure it meets local legal requirements while serving its intended purpose as a stepping stone to a formal agreement.
