Document background
The Sale And Leaseback Contract is a strategic financial instrument commonly used in the UAE business environment when organizations seek to unlock capital from their real estate assets while maintaining operational use of the property. This document type is particularly relevant in scenarios where companies need to improve their balance sheet position or require significant capital injection while continuing their business operations uninterrupted. The agreement must comply with UAE Federal laws, including the Civil Code and Commercial Transactions Law, as well as specific emirate-level property regulations. It typically includes detailed provisions for both the sale transaction and the subsequent lease arrangement, covering aspects such as property valuation, payment terms, lease duration, maintenance responsibilities, and compliance with local registration requirements. The document is structured to ensure enforceability under UAE law while potentially incorporating Sharia-compliant elements when required by the participating parties or financial institutions.
