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Trade Reference Letter for United Arab Emirates

Trade Reference Letter Template for United Arab Emirates

A Trade Reference Letter under UAE jurisdiction is a formal business document that provides verification of a company's trading history, creditworthiness, and business relationship with the issuing entity. This document, governed by UAE Commercial Law and banking regulations, serves as an official testimony of a company's business conduct and financial reliability. It typically includes details about the duration of the business relationship, payment history, transaction volumes, and general standing in the market. In the UAE context, these letters often carry significant weight in establishing business credibility and are frequently required for various commercial and banking purposes.

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What is a Trade Reference Letter?

The Trade Reference Letter is a crucial document in the UAE business environment, where formal documentation of business relationships carries significant weight. This document is typically required when companies seek to establish new business relationships, apply for credit facilities, participate in tenders, or engage in significant commercial transactions. The letter, governed by UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and related regulations, provides third-party verification of a company's business conduct, payment history, and creditworthiness. It serves as a risk assessment tool for potential business partners and financial institutions, offering insights into a company's commercial reliability and standing in the market. In the UAE's international trading hub environment, Trade Reference Letters often play a pivotal role in facilitating both local and cross-border business relationships.

What sections should be included in a Trade Reference Letter?

1. Letter Header: Company letterhead including full legal name, address, and contact details of the issuing company

2. Date and Reference: Current date and any reference numbers for tracking purposes

3. Recipient Details: Full name, title, and address of the recipient or their organization

4. Subject Line: Clear indication that this is a Trade Reference Letter for [Company Name]

5. Introduction: Statement confirming the purpose of the letter and the relationship between the issuing company and the subject company

6. Business Relationship Details: Duration and nature of business relationship between the parties

7. Payment History: Information about the subject company's payment behavior and credit terms

8. Transaction Volume: General indication of the scale of business conducted

9. Closing Statement: Professional closing with willingness to provide additional information

10. Signature Block: Name, title, and signature of the authorized representative

What sections are optional to include in a Trade Reference Letter?

1. Specific Transaction Examples: Include when detailed evidence of business relationship is requested

2. Credit Limit Information: Include when specifically authorized to disclose credit terms and limits

3. Market Standing: Include when asked to comment on the company's general reputation in the market

4. Future Business Outlook: Include when appropriate to comment on potential or planned future business relationships

5. Bank Details Confirmation: Include when specifically requested and authorized to confirm banking relationships

What schedules should be included in a Trade Reference Letter?

1. Transaction History Summary: Optional attachment showing summary of key transactions (if authorized and requested)

2. Company Profile: Basic company information document that may be attached for additional context

3. Authorization Letter: Written authorization from the subject company to release specific information

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

Reference Letter

Cost

Free to use
Relevant legal definitions




















Clauses















Relevant Industries

Retail

Wholesale

Manufacturing

Import/Export

Trading

Construction

Professional Services

Logistics

Financial Services

Technology

Healthcare

Real Estate

Energy

Telecommunications

Relevant Teams

Finance

Accounts

Legal

Commercial

Business Development

Credit Control

Procurement

Supply Chain

Treasury

Corporate Affairs

Risk Management

Customer Relations

Relevant Roles

Chief Executive Officer

Managing Director

Financial Controller

Credit Manager

Account Manager

Business Development Manager

Commercial Director

Finance Director

Treasury Manager

Procurement Manager

Supply Chain Manager

Relationship Manager

Company Secretary

Legal Counsel

Chief Financial Officer

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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