Non Equity Partnership Agreement for United Arab Emirates

Non Equity Partnership Agreement Template for United Arab Emirates

This document establishes a non-equity partnership arrangement under UAE law, specifically complying with UAE Federal Law No. 32 of 2021 and related commercial regulations. It creates a formal business relationship between parties without equity sharing, defining operational parameters, profit-sharing mechanisms, responsibilities, and governance structures. The agreement incorporates UAE-specific legal requirements while establishing clear frameworks for collaboration, risk management, and dispute resolution in accordance with local jurisdiction requirements.

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What is a Non Equity Partnership Agreement?

The Non-Equity Partnership Agreement is essential for businesses seeking to establish formal collaborations in the UAE without sharing equity ownership. This document is particularly relevant in the UAE's dynamic business environment, where companies often seek strategic partnerships while maintaining separate ownership structures. It complies with UAE Federal Law No. 32 of 2021 and related commercial regulations, making it suitable for both local and international businesses operating in the UAE. The agreement typically includes comprehensive provisions for operational management, profit-sharing mechanisms, risk allocation, and dispute resolution procedures, while ensuring compliance with local legal requirements and business practices. It's commonly used for professional services arrangements, strategic alliances, and business collaborations where parties wish to maintain their independent legal status while working together in a structured partnership framework.

What sections should be included in a Non Equity Partnership Agreement?

1. Parties: Identification and details of all parties entering into the partnership agreement

2. Background: Context of the partnership arrangement and brief description of the parties' intentions

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Partnership Structure: Nature of the partnership, confirmation of non-equity status, and basic framework

5. Term and Commencement: Duration of the partnership and conditions for commencement

6. Roles and Responsibilities: Detailed description of each partner's duties, obligations, and areas of responsibility

7. Management and Decision Making: Governance structure, decision-making processes, and voting rights

8. Financial Arrangements: Fee structures, profit sharing mechanisms, and financial obligations

9. Operational Procedures: Day-to-day management procedures and operational protocols

10. Intellectual Property Rights: Ownership and usage rights of IP brought into or created during the partnership

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client/employee solicitation

13. Termination: Grounds and procedures for terminating the partnership

14. Dispute Resolution: Procedures for resolving disputes, including UAE-specific arbitration provisions

15. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant jurisdiction

What sections are optional to include in a Non Equity Partnership Agreement?

1. Marketing and Branding: Guidelines for use of names, logos, and marketing materials - include when brand presence is significant

2. Insurance: Insurance requirements and obligations - include when specific insurance coverage is necessary

3. Force Majeure: Provisions for unforeseen circumstances - important in certain industries or high-risk environments

4. Anti-Corruption and Compliance: Specific compliance requirements - include when dealing with government contracts or regulated industries

5. Environmental Compliance: Environmental obligations - include for partnerships involving industrial or environmental impacts

6. Data Protection: Data handling and privacy requirements - include when personal data processing is involved

7. Key Performance Indicators: Performance metrics and targets - include when specific performance monitoring is required

8. Training and Support: Training obligations and support services - include when knowledge transfer is significant

9. Change Control: Procedures for managing changes - include in technology or project-based partnerships

What schedules should be included in a Non Equity Partnership Agreement?

1. Business Plan: Detailed business objectives, strategies, and operational plans

2. Financial Terms: Detailed breakdown of financial arrangements, fee structures, and payment terms

3. Service Levels: Specific performance standards and service level requirements

4. Key Personnel: List of key personnel from each party and their roles

5. Intellectual Property Register: Detailed list of IP owned by each party and brought into the partnership

6. Operational Procedures Manual: Detailed procedures for day-to-day operations

7. Form of Reports: Templates and formats for required reporting

8. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

9. Approved Subcontractors: List of pre-approved subcontractors or third-party service providers

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

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Consulting

Technology

Healthcare

Real Estate

Financial Services

Legal Services

Engineering

Architecture

Education

Retail

Hospitality

Manufacturing

Media and Entertainment

Construction

Logistics

Relevant Teams

Legal

Finance

Operations

Business Development

Strategy

Commercial

Compliance

Corporate Development

Risk Management

Partnership Management

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Partner

Chief Financial Officer

Legal Director

Business Development Director

Operations Manager

Partnership Manager

Commercial Director

Strategy Director

General Counsel

Compliance Officer

Chief Operating Officer

Senior Partner

Managing Director

Head of Legal

Corporate Development Manager

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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