The Back to Back Bank Guarantee is essential in complex international transactions where direct guarantees between parties are not practical or acceptable. This document is particularly relevant when a beneficiary requires a guarantee from a local bank in their jurisdiction, but the principal's bank is located in a different country. Under UAE law, this arrangement allows the principal's bank (counter-guarantor) to issue a counter-guarantee to a local UAE bank (guarantor), which then issues a separate guarantee to the beneficiary. The document must comply with UAE Federal Law No. 18 of 1993 (Commercial Code) and UAE Central Bank regulations, while often incorporating international banking practices such as the ICC Uniform Rules for Demand Guarantees. It typically includes detailed provisions for payment mechanisms, demand requirements, expiry conditions, and dispute resolution procedures.

1. Parties: Identifies all parties involved: the Counter-Guarantor Bank (First Bank), the Guarantor Bank (Second Bank), and reference to the ultimate beneficiary

2. Background: Explains the context of the guarantee, including reference to the underlying commercial transaction and the original guarantee

3. Definitions: Defines key terms used in the guarantee, including 'Original Guarantee', 'Counter-Guarantee', 'Guaranteed Amount', and 'Expiry Date'

4. Counter-Guarantee Amount: Specifies the maximum amount of the counter-guarantee and the currency

5. Scope of Counter-Guarantee: Details the specific obligations being guaranteed and the conditions under which the guarantee can be called

6. Payment Terms: Specifies the conditions and process for payment under the counter-guarantee, including required documentation

7. Demand Requirements: Lists the formal requirements for making a valid demand under the guarantee

8. Reduction and Release: Conditions under which the guarantee amount may be reduced and when the guarantee will be released

9. Expiry Provisions: Details when and how the guarantee expires and the process for handling claims near expiry

10. Governing Law and Jurisdiction: Specifies UAE law as governing law and determines jurisdiction for disputes