Document background
The Loan Agreement Document serves as the primary legal instrument for documenting financial facilities in the United Arab Emirates. It is essential for any lending transaction, whether conventional or Islamic, and must comply with UAE Federal Law No. 5 of 1985 (Civil Code), Federal Law No. 18 of 1993 (Commercial Code), and UAE Central Bank regulations. The agreement is used when a lender provides financial facilities to a borrower, detailing all aspects of the loan including amount, term, interest/profit rate, security, and enforcement mechanisms. This document type requires careful consideration of UAE's dual legal system, incorporating both civil law principles and Sharia requirements where applicable. The agreement's structure and content must reflect local legal requirements while providing adequate protection for all parties involved in the transaction.
