The Acknowledgement of Loan is a critical document used in the United Arab Emirates to formally document and confirm the existence of a loan arrangement between parties. It serves as both a receipt of funds and a binding commitment to repay, making it essential in both personal and commercial lending contexts. This document is particularly important in the UAE legal framework, where written documentation of financial obligations is strongly emphasized for enforcement purposes. The document typically includes detailed information about the loan amount, repayment terms, parties involved, and any applicable interest or profit-sharing arrangements (ensuring compliance with both conventional and Islamic financing principles). It can be used for various types of loans, from personal borrowings to commercial financing, and holds significant evidential value in UAE courts if disputes arise.

1. Parties: Identification of the lender and borrower with full legal names, addresses, and any relevant registration numbers

2. Background: Brief context of the loan arrangement and relationship between parties

3. Definitions: Key terms used in the document including 'Loan Amount', 'Interest Rate' (if applicable), 'Repayment Date'

4. Loan Acknowledgment: Clear statement acknowledging receipt of the loan amount and confirmation of the debt

5. Loan Details: Specific details of the loan including amount, date of disbursement, and purpose if relevant

6. Repayment Terms: Details of how and when the loan will be repaid, including payment schedule

7. Interest Rate Declaration: Statement of applicable interest rate or profit rate (for Islamic financing)

8. Representations and Warranties: Borrower's declarations regarding their capacity to enter into the agreement and validity of information provided

9. Governing Law and Jurisdiction: Confirmation that UAE law governs the agreement and specification of jurisdiction for disputes