Development Funding Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Development Funding Agreement

"I need a Development Funding Agreement under UAE law for a mixed-use real estate project in Dubai with a conventional funding structure of AED 500 million, including specific provisions for phased disbursement and environmental compliance requirements."

Document background
The Development Funding Agreement is a crucial document used in the United Arab Emirates for structuring and documenting development project financing arrangements. It serves as the primary agreement between funding institutions and developers, establishing the framework for project financing, implementation, and monitoring. This agreement type is particularly important in the UAE's dynamic development landscape, where large-scale projects require structured financing solutions. The document must align with UAE federal legislation, including the Civil Code (Federal Law No. 5 of 1985) and relevant banking regulations, while potentially incorporating Islamic finance principles where applicable. It details funding amounts, disbursement schedules, security arrangements, project milestones, reporting requirements, and compliance obligations. The agreement is essential for both conventional and Islamic financing structures and may need to account for specific free zone regulations depending on the project location.
Suggested Sections

1. Parties: Identification of the funding entity and developer/borrower, including full legal names and registration details

2. Background: Context of the development project, purpose of funding, and brief overview of the arrangement

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

4. Purpose and Scope: Detailed description of the development project and scope of funding

5. Funding Amount and Disbursement: Total funding amount, tranches, and conditions for disbursement

6. Conditions Precedent: Prerequisites that must be satisfied before funding disbursement

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Developer Obligations: Key responsibilities and commitments of the developer regarding the project

9. Funder's Rights and Obligations: Rights and responsibilities of the funding entity

10. Security and Collateral: Details of security arrangements and collateral for the funding

11. Monitoring and Reporting: Requirements for project progress reporting and financial monitoring

12. Events of Default: Circumstances constituting default and corresponding remedies

13. Term and Termination: Duration of agreement and circumstances for early termination

14. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Islamic Finance Compliance: Required when the funding follows Islamic finance principles

2. Environmental Compliance: Required for projects with significant environmental impact

3. Government Approvals: Required when specific government permits or approvals are needed

4. Joint Venture Provisions: Required when the development involves multiple developers or joint venture partners

5. Force Majeure: Optional section detailing force majeure events and consequences

6. Step-In Rights: Required when funder needs right to take control of project in specific circumstances

7. Insurance Requirements: Detailed insurance obligations when project requires specific coverage

8. Third Party Rights: Required when agreement affects rights of specific third parties

Suggested Schedules

1. Project Description: Detailed technical specifications and scope of the development project

2. Development Timeline: Detailed project milestones and completion deadlines

3. Disbursement Schedule: Breakdown of funding tranches and associated conditions

4. Security Documents: Forms of security documents and collateral arrangements

5. Required Approvals: List of required permits, licenses, and regulatory approvals

6. Reporting Requirements: Templates and specifications for required project reports

7. Key Personnel: List of key project team members and their responsibilities

8. Form of Drawdown Notice: Template for requesting funding disbursements

9. Technical Specifications: Detailed technical requirements and standards for the development

10. Financial Model: Projected financials and funding utilization plan

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Infrastructure Development

Commercial Property

Industrial Development

Hospitality Development

Healthcare Facilities

Educational Facilities

Mixed-use Development

Renewable Energy

Smart City Development

Retail Development

Residential Development

Relevant Teams

Legal

Finance

Project Development

Risk Management

Compliance

Treasury

Commercial

Construction

Investment

Corporate Finance

Project Management

Real Estate

Relevant Roles

Chief Financial Officer

Development Director

Project Finance Manager

Legal Counsel

Project Manager

Financial Controller

Risk Manager

Compliance Officer

Development Manager

Investment Director

Treasury Manager

Construction Manager

Commercial Director

Corporate Finance Manager

Senior Legal Advisor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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