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The Inter Company Loan Agreement is essential for UAE-based corporate groups managing internal financing arrangements between affiliated entities. This document is typically used when one company within a group provides financing to another group company, whether for operational needs, expansion, or restructuring purposes. The agreement must comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and UAE Central Bank regulations, particularly regarding related party transactions. It includes crucial elements such as loan terms, interest calculations, security provisions, and default remedies, while potentially incorporating Sharia-compliant structures if required. The document is particularly important for UAE companies operating across multiple sectors or free zones, ensuring proper documentation of intercompany financial relationships and compliance with local regulatory requirements.

1. Parties: Identification of the Lender and Borrower companies, including registration details and addresses

2. Background: Context of the loan arrangement and relationship between the companies

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Facility: Details of the loan amount, purpose, and availability

5. Interest: Interest rate, calculation method, and payment terms

6. Repayment: Repayment schedule, prepayment provisions, and payment mechanics

7. Representations and Warranties: Standard corporate representations and specific financial warranties

8. Conditions Precedent: Documents and conditions required before loan disbursement

9. Covenants: Ongoing obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Changes to Parties: Assignment and transfer provisions

12. Notices: Communication procedures between parties

13. General Provisions: Boilerplate clauses including amendments, waivers, and severability

14. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions