Document background
The Equity Commitment Agreement serves as a crucial document in UAE corporate transactions where investors formally commit to providing equity funding to a company. It is commonly used in private equity investments, corporate restructurings, project finance, and strategic investments. The agreement, governed by UAE law, typically includes detailed provisions on investment amount, funding conditions, representations and warranties, and regulatory compliance requirements. It ensures alignment with UAE corporate regulations, including the Commercial Companies Law and foreign ownership restrictions, while providing certainty and enforceability for both investors and recipients. The document is particularly important in complex transactions where funding may be contingent on various conditions or required in multiple tranches.
