Finders Fee Agreement Template for the United Arab Emirates

A Finders Fee Agreement is a legally binding contract that formalizes the relationship between a principal company and an intermediary who facilitates valuable business connections or opportunities. In the United Arab Emirates, these agreements are governed by strict commercial laws and must comply with specific regulatory requirements to ensure enforceability and protection for both parties.

When do you need this document?

You need a Finders Fee Agreement when engaging intermediaries to identify potential business partners, clients, or investment opportunities. This document is essential when working with business introducers, corporate finance advisory firms, investment banking firms, or commercial agents who will receive compensation for successful introductions. The agreement becomes particularly important in mergers and acquisitions, joint venture formations, or when seeking new business relationships where the finder's network and expertise add significant value. Given the UAE's position as a regional business hub, these arrangements are common in sectors such as real estate, technology, healthcare, and financial services.

Key legal considerations

The agreement must clearly define what constitutes a "successful introduction" to avoid disputes over fee entitlement. You should specify the exact scope of the finder's permitted activities, as overstepping these boundaries could trigger commercial agency law requirements under UAE Federal Law No. 14 of 1988. Payment terms must be precisely outlined, including fee percentages, calculation methods, and payment schedules. The document should include exclusivity clauses if applicable, confidentiality provisions to protect sensitive business information, and clear termination procedures. Anti-money laundering compliance under UAE Federal Law No. 20 of 2018 is crucial, requiring proper documentation of all commission payments and recipient identification.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 5 of 1985 (Civil Code), all contractual relationships must meet specific formation requirements including clear offer, acceptance, and consideration. The agreement must identify all parties with full legal names, UAE addresses, and relevant registration details. UAE Federal Law No. 18 of 1993 (Commercial Code) governs the commercial aspects, requiring compliance with business transaction regulations. If the finder's activities involve ongoing representation or exclusive arrangements, you may need to consider UAE Federal Law No. 2 of 2015 (Commercial Companies Law) regarding the parties' legal capacity and status. The agreement should specify UAE courts' jurisdiction for dispute resolution and applicable UAE law. Documentation must be available in Arabic for official purposes, and notarization may be required depending on the transaction value and nature of the business relationship being facilitated.