Managed Services Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Managed Services Agreement

"I need a Managed Services Agreement for IT infrastructure services, including cloud hosting and cybersecurity monitoring, to be provided to our Dubai-based financial services company starting March 2025, with particular emphasis on data protection compliance and service level requirements."

Document background
This Managed Services Agreement is designed for use in the United Arab Emirates, providing a robust legal framework for outsourcing operational services to specialized service providers. It is particularly relevant in today's business environment where organizations increasingly rely on external expertise for managing their technical, operational, or business processes. The agreement encompasses essential elements required under UAE law, including compliance with Federal Decree-Law No. 45 of 2021 on Personal Data Protection, UAE Commercial Transactions Law, and relevant sector-specific regulations. It provides comprehensive coverage of service delivery parameters, performance metrics, risk allocation, and governance mechanisms while accommodating UAE-specific requirements such as local sponsorship (where applicable) and Emiratisation considerations.
Suggested Sections

1. Parties: Identification of contracting parties including full legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between parties, and high-level purpose of the managed services arrangement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Term and Renewal: Duration of the agreement, commencement date, and renewal provisions

5. Services Scope: Overview of services to be provided, with reference to detailed service descriptions in schedules

6. Service Levels: Key performance indicators, service level requirements, and measurement metrics

7. Customer Obligations: Responsibilities and obligations of the customer, including provision of access, information, and resources

8. Provider Obligations: Core obligations of the service provider, including service delivery standards and compliance requirements

9. Personnel and Key Staff: Requirements for service provider's personnel, key staff provisions, and any security/vetting requirements

10. Charges and Payment: Fee structure, payment terms, invoicing procedures, and financial obligations

11. Governance and Reporting: Management structure, reporting requirements, meeting cadence, and escalation procedures

12. Intellectual Property Rights: Ownership and licensing of IP, including pre-existing IP and newly created materials

13. Confidentiality: Protection and handling of confidential information from both parties

14. Data Protection and Security: Compliance with UAE data protection laws, security requirements, and data handling procedures

15. Liability and Indemnities: Limitation of liability, indemnification obligations, and risk allocation between parties

16. Force Majeure: Events constituting force majeure and consequences

17. Termination: Termination rights, procedures, and consequences

18. Exit and Migration: Exit management and transition services upon termination

19. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.

Optional Sections

1. Regulatory Compliance: Specific section for heavily regulated industries (e.g., healthcare, financial services) detailing compliance requirements

2. Business Continuity and Disaster Recovery: Detailed BC/DR requirements for critical services

3. Environmental and Social Responsibility: For services with environmental impact or social responsibility requirements

4. Local Content Requirements: For services subject to UAE local content or Emiratisation requirements

5. Security Clearance: For services involving government or sensitive facilities

6. Insurance: Detailed insurance requirements beyond standard coverage

7. Parent Company Guarantee: When financial backing from parent company is required

8. Anti-Corruption and Ethics: Enhanced compliance requirements for government or high-risk services

Suggested Schedules

1. Schedule 1 - Detailed Service Description: Comprehensive technical and operational description of all services

2. Schedule 2 - Service Levels and KPIs: Detailed service levels, measurement methodologies, and remedies

3. Schedule 3 - Charges and Pricing: Detailed pricing structure, rate cards, and payment mechanisms

4. Schedule 4 - Governance and Reports: Detailed governance structure, reporting templates, and meeting schedule

5. Schedule 5 - Security Requirements: Detailed security policies, procedures, and compliance requirements

6. Schedule 6 - Customer Dependencies: Detailed customer obligations and dependencies

7. Schedule 7 - Staff and Key Personnel: Details of key staff, roles, qualifications, and replacement procedures

8. Schedule 8 - Exit Management Plan: Detailed exit procedures, timelines, and responsibilities

9. Schedule 9 - Business Continuity Plan: Detailed BC/DR procedures and requirements

10. Schedule 10 - Change Control Procedure: Process for managing changes to services or agreement

11. Appendix A - Technical Requirements: Detailed technical specifications and requirements

12. Appendix B - Form of Change Order: Template for documentary changes to the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Telecommunications

Healthcare

Financial Services

Oil & Gas

Government Services

Education

Real Estate

Hospitality

Manufacturing

Retail

Transportation & Logistics

Construction

Professional Services

Media & Entertainment

Relevant Teams

Legal

Procurement

Information Technology

Operations

Finance

Risk & Compliance

Commercial

Technical Operations

Project Management

Contract Management

Vendor Management

Business Operations

Service Delivery

Relevant Roles

Chief Information Officer

Chief Technology Officer

Head of Procurement

Legal Counsel

Commercial Director

Operations Director

Service Delivery Manager

Contract Manager

Chief Financial Officer

Risk Manager

Compliance Officer

IT Director

Procurement Manager

Project Manager

Vendor Manager

Business Unit Head

Chief Operating Officer

Technical Operations Manager

Legal Director

Commercial Manager

Industries
UAE Civil Code (Federal Law No. 5 of 1985): Fundamental law governing contractual relationships, obligations, and general principles of contracts in the UAE
UAE Commercial Transactions Law (Federal Law No. 18 of 1993): Regulates commercial transactions and business relationships between parties
Federal Law No. 2 of 2019 on the Use of ICT in Healthcare: Relevant if managed services involve healthcare data or systems, governing health data protection and electronic health information systems
UAE Federal Law No. 2 of 2015 on Commercial Companies: Important for understanding the legal framework governing business entities and their operations in the UAE
Federal Decree-Law No. 45 of 2021 on Personal Data Protection: Governs the collection, processing, and transfer of personal data, crucial for managed services involving data handling
Federal Law No. 4 of 2012 on Competition Regulation: Relevant for non-compete provisions and market competition aspects of the agreement
UAE Federal Law No. 8 of 1980 (UAE Labor Law): Essential if the managed services agreement involves staff deployment or secondment arrangements
Federal Law No. 31 of 2021 (UAE Cyber Crime Law): Crucial for managed services involving IT systems, cybersecurity, and digital services
Federal Law No. 37 of 1992 on Trademarks: Important for protecting intellectual property rights and trademarks in the service delivery
Electronic Transactions and Commerce Law (Dubai Law No. 2 of 2002): Relevant for electronic transactions and digital aspects of service delivery if operating in Dubai
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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