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Shared Use Agreement
I need a shared use agreement for a community space that will be utilized by multiple organizations, outlining the schedule for usage, maintenance responsibilities, and a conflict resolution process, with a focus on ensuring equitable access and compliance with local regulations.
What is a Shared Use Agreement?
A Shared Use Agreement sets out the terms for multiple parties to jointly use a space, facility, or resource in the UAE. These agreements are common when organizations want to split access to valuable assets like office buildings, warehouses, or equipment while keeping their operations separate and managing liability.
Under UAE commercial law, these agreements protect all parties by clearly defining schedules, maintenance responsibilities, cost-sharing formulas, and dispute resolution procedures. They're especially useful in free zones and business hubs where companies often share infrastructure and facilities to reduce overhead costs while maintaining legal compliance with local property regulations.
When should you use a Shared Use Agreement?
Consider a Shared Use Agreement when multiple businesses need to share physical spaces or resources in the UAE. This is particularly relevant for companies in free zones sharing conference facilities, logistics firms splitting warehouse space, or professional services firms dividing premium office locations to manage costs while maintaining their independent operations.
The agreement becomes essential before starting any shared facility arrangements, especially in Dubai and Abu Dhabi's commercial hubs. It helps prevent disputes by documenting exactly how the space will be used, who pays for what, and what happens if someone damages shared equipment or defaults on payments - critical protections under UAE commercial law.
What are the different types of Shared Use Agreement?
- Basic Property Sharing: Most common in UAE free zones, covering shared office spaces with clear access schedules and cost divisions
- Equipment and Facility Use: Popular among industrial companies, detailing maintenance responsibilities and usage protocols for shared machinery
- Mixed-Use Commercial: Used in retail complexes for shared amenities like parking, security, and common areas
- Academic/Research Facility: Common among educational institutions sharing specialized equipment or laboratory space
- Event Space Agreement: Tailored for temporary sharing of conference centers or exhibition spaces, especially in Dubai's business districts
Who should typically use a Shared Use Agreement?
- Property Owners: Landlords or facility owners who want to maximize asset utilization while maintaining control over their properties
- Business Tenants: Companies in UAE free zones sharing premium office spaces or facilities to reduce operational costs
- Legal Consultants: Draft and review agreements to ensure compliance with UAE property laws and commercial regulations
- Facility Managers: Oversee daily operations and enforce the terms of shared use arrangements
- Property Management Companies: Coordinate between multiple parties and handle practical implementation of sharing schedules
How do you write a Shared Use Agreement?
- Property Details: Gather exact facility specifications, location details, and any existing UAE property documentation
- Usage Schedule: Map out specific times, dates, and duration for each party's access to shared spaces
- Cost Allocation: Calculate how utilities, maintenance, and operational expenses will be divided among users
- Insurance Requirements: Document mandatory coverage levels under UAE regulations for shared commercial spaces
- Dispute Resolution: Define clear procedures aligned with local commercial laws for handling conflicts
- Compliance Check: Verify agreement terms against UAE property regulations and free zone requirements
What should be included in a Shared Use Agreement?
- Party Information: Full legal names, addresses, and trade license details of all participating entities
- Property Description: Precise details of shared spaces, including floor plans and access points
- Usage Terms: Specific schedules, permitted activities, and restrictions aligned with UAE property laws
- Cost Structure: Clear breakdown of shared expenses, payment terms, and security deposit requirements
- Maintenance Obligations: Detailed responsibilities for upkeep and repairs
- Termination Clauses: Valid grounds for ending the agreement under UAE commercial law
- Dispute Resolution: Local arbitration procedures and applicable jurisdiction details
What's the difference between a Shared Use Agreement and a Shared Facilities Agreement?
While a Shared Use Agreement and a Shared Facilities Agreement might seem similar, they serve distinct purposes in UAE business operations. A Shared Use Agreement typically focuses on temporary or scheduled access to specific spaces or resources, while a Shared Facilities Agreement governs long-term joint ownership or management of entire facilities.
- Scope and Duration: Shared Use Agreements usually cover specific times and limited spaces, while Shared Facilities Agreements encompass permanent infrastructure sharing arrangements
- Financial Structure: Use agreements involve usage fees and scheduling costs, while facilities agreements include capital investments and long-term maintenance commitments
- Legal Framework: Shared Use Agreements operate under UAE commercial tenancy laws, while Facilities Agreements fall under property ownership and management regulations
- Management Control: Use agreements maintain clear separate control, while facilities agreements often require joint management committees
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