Document background
The Assignment Of Proceeds Agreement is a crucial document in UAE commercial practice, commonly used in financing arrangements, project developments, and commercial transactions. It enables businesses to monetize their receivables, secure financing, or restructure payment arrangements by legally transferring their rights to receive future payments. Under UAE law, such assignments must comply with specific provisions of the Civil Code regarding hawala (assignment) and should consider Sharia law principles where applicable. The agreement typically details the scope of assigned proceeds, payment mechanics, and notification requirements to debtors. It's particularly valuable in project finance, construction contracts, and trade finance where future payment streams need to be assigned for financing or security purposes. The document must address UAE-specific requirements for valid assignments, including clear identification of rights and proper notification procedures.
