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Financial Investment Agreement for United Arab Emirates

Financial Investment Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the terms and conditions for financial investments between parties. The agreement complies with UAE Federal laws and regulations, including those set by the Securities and Commodities Authority (SCA) and the UAE Central Bank. It details investment structure, rights and obligations, regulatory compliance requirements, risk disclosures, governance mechanisms, and dispute resolution procedures specific to the UAE jurisdiction. The document incorporates necessary provisions for both conventional and Islamic financial structures, considering the UAE's dual financial system.

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Financial Investment Agreement

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What is a Financial Investment Agreement?

The Financial Investment Agreement is a crucial document used in the United Arab Emirates to formalize investment relationships between investors and investment managers or companies. It is particularly relevant in Dubai and Abu Dhabi's growing financial sectors, where both conventional and Islamic financial transactions are common. The agreement must comply with UAE Federal Law No. 2 of 2015 (Commercial Companies Law), UAE Federal Law No. 14 of 2018 (regarding the Central Bank & Organization of Financial Institutions), and various SCA regulations. The document typically includes detailed provisions for investment structure, regulatory compliance, risk management, reporting requirements, and dispute resolution mechanisms. It is essential for protecting investors' interests while ensuring compliance with UAE's robust financial regulatory framework.

What sections should be included in a Financial Investment Agreement?

1. Parties: Identification of all parties to the agreement, including their legal status and authority

2. Background: Context of the investment agreement and relationship between parties

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Investment Structure: Details of the investment amount, type, and structure

5. Investment Terms: Specific terms including investment period, returns, and exit mechanisms

6. Representations and Warranties: Statements of fact and assurances from all parties

7. Regulatory Compliance: Compliance with UAE financial regulations and reporting requirements

8. Risk Disclosures: Mandatory risk warnings and disclosures as per UAE regulations

9. Rights and Obligations: Detailed responsibilities and rights of each party

10. Governance: Decision-making processes and control mechanisms

11. Reporting and Valuations: Requirements for financial reporting and asset valuations

12. Confidentiality: Protection of confidential information and trade secrets

13. Term and Termination: Duration of agreement and termination provisions

14. Dispute Resolution: Process for resolving disputes under UAE law

15. General Provisions: Standard legal provisions including notices, amendments, and governing law

What sections are optional to include in a Financial Investment Agreement?

1. Shariah Compliance: Required for Islamic investment structures, defining compliance with Shariah principles

2. Special Purpose Vehicle: Required when investment is structured through an SPV, defining its role and governance

3. Co-Investment Rights: Include when there are multiple investors or co-investment opportunities

4. Tag-Along/Drag-Along Rights: Include for investments with potential future ownership transfers

5. Anti-Dilution Provisions: Include for investments where additional capital raising may occur

6. Free Zone Provisions: Required when investment involves UAE free zone entities

7. Management Rights: Include when investor has specific management or board representation rights

8. Environmental, Social and Governance (ESG): Include when investment has specific ESG requirements

What schedules should be included in a Financial Investment Agreement?

1. Schedule 1 - Investment Details: Detailed breakdown of investment amount, structure, and payment terms

2. Schedule 2 - Business Plan: Detailed business plan and investment objectives

3. Schedule 3 - Financial Projections: Financial forecasts and performance targets

4. Schedule 4 - Key Performance Indicators: Specific metrics for measuring investment performance

5. Schedule 5 - Reporting Templates: Standard formats for required financial and operational reports

6. Schedule 6 - Compliance Checklist: Detailed regulatory compliance requirements and checklist

7. Schedule 7 - Due Diligence Results: Summary of completed due diligence findings

8. Appendix A - Corporate Authorities: Copies of corporate approvals and authorizations

9. Appendix B - Regulatory Approvals: Copies of relevant regulatory approvals and licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions





















































Clauses

































Relevant Industries

Financial Services

Investment Banking

Private Equity

Venture Capital

Real Estate Investment

Asset Management

Islamic Finance

Family Office Services

Corporate Finance

Infrastructure Development

Technology Investment

Healthcare Investment

Relevant Teams

Legal

Compliance

Investment

Risk Management

Finance

Corporate Development

Regulatory Affairs

Portfolio Management

Fund Administration

Corporate Governance

Treasury

Business Development

Relevant Roles

Chief Investment Officer

Investment Manager

Legal Counsel

Compliance Officer

Financial Director

Risk Manager

Portfolio Manager

Investment Analyst

Managing Director

Board Member

Chief Financial Officer

Fund Administrator

Investment Advisor

Corporate Lawyer

Regulatory Affairs Manager

Industries








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