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The Personal Guarantee Agreement is a crucial document in UAE business practices, commonly used to secure commercial loans, rental obligations, and business transactions. It provides creditors with additional security by allowing them to seek payment from a guarantor if the principal debtor defaults. The agreement must be structured in accordance with UAE Federal Laws, particularly the Civil Code and Commercial Transactions Law, and should respect Sharia principles regarding guarantees (Kafala). This document is particularly important in the UAE business environment where personal guarantees are frequently required by banks, financial institutions, and commercial entities as additional security for various business obligations. The agreement includes detailed provisions about the guaranteed amount, duration, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon.

1. Parties: Identification of the Guarantor, Beneficiary (Creditor), and the Principal Debtor

2. Background: Context of the guarantee, including reference to the principal debt or obligation being guaranteed

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Event of Default', and 'Guarantee Period'

4. Guarantee and Indemnity: Core guarantee provisions, including the scope of guaranteed obligations and indemnification terms

5. Nature of Guarantee: Specifies that the guarantee is continuing, irrevocable, and unconditional as per UAE law requirements

6. Guarantor's Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial status

7. Payment Provisions: Terms regarding timing, method, and currency of payments under the guarantee

8. Enforcement and Remedies: Rights and remedies available to the Beneficiary upon default

9. Preservation of Rights: Provisions ensuring the guarantee remains valid despite changes to the principal obligation

10. Costs and Expenses: Allocation of costs related to the preparation and enforcement of the guarantee

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction of UAE courts