Document background
This document serves as the primary contractual framework for litigation funding arrangements in the UAE, where a third party agrees to finance litigation in exchange for a return from the proceeds. The Litigation Financing Agreement is particularly relevant in complex commercial disputes where claimants seek external funding to pursue their claims. It addresses specific requirements of UAE federal laws, including Civil Code provisions, financial regulations, and where applicable, DIFC requirements. The agreement typically covers funding amount, success fee calculations, control rights, termination provisions, and confidentiality obligations. It's designed to provide clarity on the rights and obligations of both the funder and funded party while ensuring compliance with local regulations regarding financial transactions and litigation procedures. This document type has become increasingly important as litigation funding gains traction in the UAE market, particularly for commercial and international disputes.
