Document background
The Finance Lease Agreement is a crucial document in UAE business operations, commonly used when entities require asset financing while optimizing their balance sheet structure. It enables businesses to acquire and use assets without immediate capital expenditure, while providing financial institutions with secured lending opportunities. The agreement must comply with UAE federal legislation, including the Commercial Code (Federal Law No. 18 of 1993) and Civil Code (Federal Law No. 5 of 1985), as well as Central Bank regulations. When structured as Islamic finance, it often takes the form of an Ijara agreement, requiring additional Sharia compliance considerations. The document typically includes detailed provisions on asset specifications, payment schedules, maintenance obligations, insurance requirements, and end-of-lease arrangements, making it suitable for various types of assets from equipment to vehicles and real estate.
