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The Profit Participating Loan Agreement is a specialized financing instrument used in Qatar when parties wish to structure funding arrangements that align the interests of lenders and borrowers through profit-sharing mechanisms rather than traditional interest payments. This agreement type is particularly relevant in Qatar's legal framework, which combines civil law principles with Sharia requirements. The document is commonly used for growth capital, project financing, or business expansion where the lender takes a quasi-equity position without direct ownership. It includes detailed provisions for profit calculation and sharing, reporting obligations, and compliance requirements under Qatar law. The agreement balances the lender's need for security and returns with the borrower's operational flexibility, while maintaining compliance with both Qatar Central Bank regulations and Islamic finance principles.

1. Parties: Identification of the Lender and Borrower with full legal names and registration details

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

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement, including financial and technical terms related to profit calculation

4. Facility Amount and Purpose: Details of the loan amount and specified purposes for which it can be used

5. Profit Sharing Mechanism: Detailed explanation of how profits will be calculated, shared and paid, including calculation periods and payment dates

6. Conditions Precedent: Conditions that must be satisfied before the loan is advanced

7. Drawdown Mechanics: Procedures and requirements for drawing down the loan

8. Repayment Terms: Terms for repayment of principal amount, including schedule and mechanisms

9. Representations and Warranties: Standard and transaction-specific representations and warranties from the borrower

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Information Rights: Borrower's obligations to provide financial and operational information

12. Events of Default: Circumstances constituting default and consequences

13. Sharia Compliance: Provisions ensuring the agreement complies with Islamic finance principles

14. Boilerplate Provisions: Standard legal provisions including notices, amendments, governing law, and jurisdiction