Asset Management Contract Template for United Arab Emirates

The Asset Management Contract serves as the primary agreement between professional asset managers and their clients in the UAE market. It is essential for establishing and governing investment management relationships in compliance with UAE Federal Law No. 14 of 2018 and SCA regulations. This document is typically used when a client (individual, institutional, or corporate) engages a licensed asset management firm to manage their investment portfolio or specific assets. The contract covers crucial elements including investment strategy, risk parameters, reporting requirements, fee structures, and regulatory compliance obligations. It can be customized for different types of assets (securities, real estate, private equity) and can incorporate Shariah-compliance provisions when required. The document reflects UAE's specific regulatory environment while addressing international best practices in asset management.

1. Parties: Identification of the Asset Manager and the Client with full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Appointment and Scope: Formal appointment of the asset manager and detailed scope of services

5. Authority and Discretion: Extent of manager's discretionary authority and any limitations

6. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any restrictions

7. Duties and Responsibilities: Detailed obligations of the asset manager including reporting, monitoring, and compliance

8. Client's Obligations: Client's responsibilities including providing information and maintaining minimum account requirements

9. Fees and Expenses: Management fees, performance fees, expense allocation, and payment terms

10. Representations and Warranties: Standard and specific representations by both parties

11. Risk Disclosures: Acknowledgment of investment risks and limitations of the manager's liability

12. Compliance and Regulatory Matters: Obligations regarding UAE regulatory requirements and compliance procedures

13. Confidentiality: Protection and handling of confidential information

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

15. Indemnification: Mutual indemnification provisions and limitations of liability

16. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.