Short Term Investment Contract Template for United Arab Emirates

The Short Term Investment Contract serves as a foundational document for structuring temporary investment relationships in the UAE market. This document is particularly relevant for investments ranging from 3 to 24 months and is commonly used in both conventional and Islamic finance contexts. It addresses crucial elements including investment strategy, profit distribution mechanisms, risk disclosure, and regulatory compliance under UAE law. The contract is designed to align with UAE Central Bank regulations, SCA requirements, and where applicable, free zone regulations such as those of the DIFC or ADGM. It includes necessary provisions for anti-money laundering compliance, investor protection, and market conduct rules specific to the UAE jurisdiction. The document is essential for protecting both investor and investment manager interests while ensuring transparency and regulatory compliance in short-term investment activities.

1. Parties: Identification of the investor and investment manager/company

2. Background: Context of the investment opportunity and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Investment Amount and Terms: Specification of investment amount, duration, and key commercial terms

5. Investment Strategy: Detailed description of how the funds will be invested

6. Profit Distribution: Terms for calculation and distribution of investment returns

7. Risk Disclosure: Mandatory disclosure of investment risks

8. Duration and Exit: Investment period, termination rights, and exit procedures

9. Representations and Warranties: Standard declarations by both parties

10. Confidentiality: Protection of confidential information

11. Governing Law and Jurisdiction: Specification of UAE law application and dispute resolution