Document background
The Entity Purchase Agreement is a fundamental transaction document used in mergers and acquisitions in the UAE, designed to facilitate the transfer of ownership of a business entity while ensuring compliance with local laws and regulations. This agreement is essential for both domestic and cross-border transactions, incorporating specific provisions required under UAE commercial law, companies law, and foreign ownership regulations. The document typically includes detailed sections covering purchase price mechanisms, warranties and indemnities, conditions precedent (including regulatory approvals), and completion mechanics. It must address UAE-specific considerations such as foreign ownership restrictions, local corporate governance requirements, and the new corporate tax regime. The agreement is particularly important in the context of the UAE's growing M&A market and its position as a regional business hub, requiring careful attention to both international best practices and local legal requirements.
