Letter Of Support for United Arab Emirates

Letter Of Support Template for United Arab Emirates

A Letter of Support under UAE law is a formal document issued typically by a parent company or major stakeholder, expressing their intention to provide financial, operational, or technical support to a subsidiary, project company, or related entity. While not always creating legally binding obligations, it serves as an important comfort document in the UAE business environment, governed by Federal Law No. 5 of 1985 (UAE Civil Code) and related commercial legislation. The document outlines the nature, extent, and conditions of the support being offered, providing assurance to stakeholders while maintaining flexibility in its commitments.

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What is a Letter Of Support?

A Letter of Support is a crucial document in the UAE business landscape, commonly utilized when one entity needs to provide assurance of support to another without creating fully binding guarantees. This document type is particularly relevant in project finance, corporate restructuring, and commercial transactions within the UAE jurisdiction. While governed by UAE law, including the Civil Code and Commercial Transactions Law, Letters of Support offer a flexible mechanism for expressing commitment while maintaining certain limitations on liability. They typically include details about the supporting party's capacity, the nature and extent of support offered, and any conditions or limitations. This document type is especially valuable in the UAE's dynamic business environment, where international companies often need to provide comfort to local partners or financial institutions without entering into full guarantees.

What sections should be included in a Letter Of Support?

1. Letter Header: Including date, sender's details, recipient's details, and reference number if applicable

2. Subject Line: Clear identification of the purpose of the letter and any relevant project or entity references

3. Opening Statement: Introduction identifying the supporting entity and the entity being supported

4. Background Context: Brief description of the relationship between parties and the reason for providing support

5. Nature of Support: Clear statement of the type and extent of support being offered (financial, operational, technical, etc.)

6. Duration of Support: Timeframe or conditions under which the support will be provided

7. Limitations and Conditions: Any specific limitations, conditions, or qualifications to the support being offered

8. Closing Statement: Standard closing paragraph reaffirming the commitment

9. Signature Block: Authorized signatory details, title, and company stamp if required

What sections are optional to include in a Letter Of Support?

1. Financial Capacity Statement: Optional section confirming the financial capacity of the supporting entity - used when the support is primarily financial

2. Regulatory Compliance: Statement regarding compliance with relevant regulations - included when dealing with regulated industries or entities

3. Group Structure Description: Brief description of corporate relationship between parties - included when the relationship is complex or needs clarification

4. Previous Support Reference: Reference to any existing or previous support arrangements - included when building upon existing relationships

5. Governing Law Statement: Explicit statement of governing law - included when cross-border elements exist or when specifically requested

What schedules should be included in a Letter Of Support?

1. Corporate Authority Evidence: Copy of board resolution or power of attorney authorizing the signatory

2. Financial Information: Recent financial statements or other evidence of financial capacity (if required)

3. Corporate Structure Chart: Diagram showing relationship between supporting and supported entities (if complex)

4. Project Details: Summary of project or venture being supported (if applicable)

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

Publisher

Genie AI

Document Type

Service Letter

Cost

Free to use
Relevant Industries

Banking and Financial Services

Construction and Infrastructure

Real Estate Development

Energy and Utilities

Healthcare

Technology and Telecommunications

Manufacturing

Trading and Commerce

Transportation and Logistics

Hospitality and Tourism

Relevant Teams

Legal

Finance

Corporate Affairs

Treasury

Risk Management

Compliance

Commercial Operations

Business Development

Corporate Communications

Investment

Project Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Director

Corporate Finance Manager

Project Finance Manager

Commercial Director

Risk Manager

Treasury Manager

Company Secretary

General Counsel

Business Development Director

Investment Manager

Corporate Banking Manager

Relationship Manager

Compliance Officer

Industries
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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