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The Shareholder Loan Agreement is commonly used in Qatar when a company requires additional financing and opts to receive it from existing shareholders rather than external lenders. This arrangement is particularly relevant for companies seeking to maintain their existing ownership structure while securing necessary funding. The document must comply with Qatar's legal framework, including the Commercial Companies Law No. 11 of 2015 and the Civil Code, while incorporating Sharia-compliant financing principles. It typically includes detailed terms about the loan amount, profit rate (as opposed to interest), repayment schedule, any security arrangements, and relevant corporate approvals. This type of agreement is especially useful for companies in growth phases, during project financing, or when conventional bank financing may not be optimal or available.

1. Parties: Identification of the Lender (Shareholder) and Borrower (Company), including full legal names and registration details

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

3. Definitions and Interpretation: Key terms used in the agreement, interpretation rules, and currency definitions

4. The Loan: Principal amount, purpose, and drawdown mechanics

5. Profit Rate and Payments: Profit rate (instead of interest), calculation method, payment dates, and compliance with Sharia principles

6. Representations and Warranties: Standard company representations and specific Qatar law compliance declarations

7. Conditions Precedent: Documents and conditions required before loan availability

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

9. Events of Default: Circumstances constituting default and consequences

10. Payments and Calculations: Payment mechanics, business day conventions, and currency provisions

11. Changes to Parties: Transfer and assignment provisions

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Qatar law as governing law and jurisdiction provisions

14. Language: Specification of controlling language version and any translations