Advisory Engagement Letter Template for United Arab Emirates

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Key Requirements PROMPT example:

Advisory Engagement Letter

"I need an Advisory Engagement Letter for my Dubai-based financial consulting firm to provide investment advisory services to a UAE government entity, with service commencement from March 1, 2025, including strict confidentiality provisions and compliance with local regulatory requirements."

What is a Advisory Engagement Letter?

The Advisory Engagement Letter is a crucial document used in the United Arab Emirates to formalize professional advisory relationships between service providers and their clients. This document is essential when establishing any professional advisory service arrangement, whether for management consulting, financial advisory, strategic planning, or other professional services. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), among other relevant regulations. The letter typically includes detailed scope of services, fee arrangements, delivery timelines, and terms of engagement, while incorporating necessary provisions for UAE regulatory compliance. It serves as both a formal agreement and a project initiation document, protecting the interests of all parties involved while ensuring clarity in the professional relationship.

What sections should be included in a Advisory Engagement Letter?

1. Letter Header: Professional letterhead, date, reference number, and recipient's details

2. Salutation: Formal greeting to the appropriate contact person

3. Introduction: Opening paragraph confirming the engagement and thanking the client for selecting the firm

4. Scope of Services: Detailed description of the advisory services to be provided, including specific deliverables and any limitations

5. Team Structure: Key personnel who will be involved in providing the services and their roles

6. Fees and Payment Terms: Clear outline of fee structure, payment schedule, and any additional costs

7. Timeline: Expected duration of the engagement and key milestones

8. Confidentiality: Commitments regarding the protection of sensitive information

9. Professional Standards: Statement of commitment to professional standards and quality of service

10. Termination Provisions: Conditions and process for ending the engagement

11. Acceptance and Execution: Instructions for acknowledging and accepting the engagement terms

What sections are optional to include in a Advisory Engagement Letter?

1. Regulatory Compliance: Specific section for regulated industries requiring additional compliance statements or disclosures

2. Conflict Resolution: Detailed dispute resolution procedures, recommended for high-value or complex engagements

3. Insurance Coverage: Details of professional indemnity insurance, particularly relevant for high-risk advisory services

4. Sub-contractor Provisions: Required when external specialists or sub-contractors may be involved in service delivery

5. International Considerations: Necessary for cross-border advisory services involving multiple jurisdictions

6. Force Majeure: Detailed force majeure provisions, recommended for long-term engagements

7. Data Protection: Specific data handling and protection commitments, essential when dealing with personal or sensitive data

What schedules should be included in a Advisory Engagement Letter?

1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of services, methodologies, and deliverables

2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule C - Team Profiles: Detailed biographies and qualifications of key team members

4. Schedule D - Project Timeline: Detailed project plan with specific milestones and deadlines

5. Appendix 1 - Standard Terms and Conditions: Firm's standard terms and conditions applicable to all engagements

6. Appendix 2 - Required Client Information: List of information and documents required from the client

7. Appendix 3 - Compliance Requirements: Specific regulatory or compliance requirements applicable to the engagement

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 Industries

Financial Services

Management Consulting

Legal Services

Technology

Healthcare

Real Estate

Construction

Manufacturing

Energy

Telecommunications

Education

Retail

Hospitality

Transportation

Professional Services

Government Services

Relevant Teams

Legal

Finance

Procurement

Operations

Risk Management

Compliance

Business Development

Strategy

Executive Leadership

Project Management

Contract Administration

Corporate Governance

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Legal Counsel

Procurement Manager

Project Manager

Business Development Director

Operations Director

Finance Director

Contract Manager

Department Head

Senior Executive

Company Secretary

Risk Manager

Compliance Officer

Strategy Director

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 in the UAE
UAE Federal Law No. 2 of 2015 on Commercial Companies: Governs corporate entities and their business activities, including professional services firms
UAE Federal Law No. 4 of 2012 on Competition: Ensures fair competition and prevents monopolistic practices, relevant for advisory service arrangements
UAE Federal Law No. 24 of 2006 on Consumer Protection: Protects rights of service recipients and ensures transparency in professional relationships
UAE Federal Decree-Law No. 33 of 2021 on Commercial Companies: Updated regulations affecting business operations and professional services in the UAE
DIFC Law No. 6 of 2004 (if applicable): Specific regulations for contracts within Dubai International Financial Centre jurisdiction
UAE Federal Law No. 1 of 2006 on Electronic Commerce: Governs electronic transactions and digital signatures if the engagement letter is executed electronically
UAE Federal Law No. 2 of 2019 on Anti-Money Laundering: Compliance requirements for advisory firms regarding AML obligations and due diligence
UAE Federal Law No. 19 of 2016 on Combating Commercial Fraud: Ensures truthful representation of services and prevents fraudulent practices in professional engagements
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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