Security Bank Guarantee for United Arab Emirates

Security Bank Guarantee Template for United Arab Emirates

A Security Bank Guarantee is a formal undertaking issued by a bank in the United Arab Emirates, where the bank promises to pay a specified sum to a beneficiary if the principal fails to fulfill certain obligations. This document, governed by UAE law including Federal Law No. 18 of 1993 and UAE Central Bank regulations, serves as a risk mitigation tool in commercial transactions. It contains specific terms regarding the guarantee amount, validity period, conditions for demand, and claim procedures, all structured to comply with UAE banking regulations and commercial law requirements.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Security Bank Guarantee

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Security Bank Guarantee?

The Security Bank Guarantee is a fundamental financial instrument widely used in UAE business transactions to provide financial security and risk mitigation. This document is typically required in situations where one party needs to provide financial assurance to another party regarding the fulfillment of contractual obligations. Under UAE law, particularly Federal Law No. 18 of 1993 and Central Bank regulations, these guarantees must follow specific formatting and content requirements to ensure their enforceability. The Security Bank Guarantee can be used for various purposes including bid bonds, performance bonds, advance payment guarantees, and retention bonds. It specifies the guaranteed amount, validity period, conditions for calling the guarantee, and the process for making claims. The document is particularly crucial in the UAE's business environment, where bank guarantees are commonly required for government contracts, construction projects, and large commercial transactions.

What sections should be included in a Security Bank Guarantee?

1. Bank Details and Reference Number: Full details of the issuing bank, branch information, and unique guarantee reference number

2. Beneficiary Details: Complete information of the party in whose favor the guarantee is issued

3. Principal Details: Complete information of the party on whose behalf the guarantee is being issued

4. Guarantee Amount: The specific amount of the guarantee in both figures and words, including currency

5. Purpose of Guarantee: Clear statement of the underlying transaction or obligation being guaranteed

6. Validity Period: Explicit start and end dates of the guarantee, including any auto-renewal conditions

7. Terms of Demand: Specific conditions under which the guarantee can be called upon and payment procedure

8. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant jurisdiction for disputes

9. Guarantee Terms and Conditions: Standard terms including claim process, reduction provisions, and expiry conditions

What sections are optional to include in a Security Bank Guarantee?

1. Counter Guarantee Reference: Required when the guarantee is issued based on a counter-guarantee from another bank

2. Reduction Clause: Include when the guarantee amount can be reduced over time based on specific conditions

3. Assignment Provisions: Required when the beneficiary may need to assign the guarantee rights

4. Language Declaration: Required when the guarantee is issued in multiple languages, specifying which version prevails

5. Advance Payment Details: Required for advance payment guarantees, specifying the details of the advance payment

6. Performance Criteria: Required for performance guarantees, detailing the performance standards being guaranteed

What schedules should be included in a Security Bank Guarantee?

1. Form of Demand: Template for making a valid demand under the guarantee

2. Supporting Documents List: List of required documents to be submitted with any demand

3. Authorized Signatory List: List of persons authorized to make demands under the guarantee

4. Underlying Contract Summary: Brief summary of the main contract or obligation being guaranteed (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

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant Industries

Banking and Financial Services

Construction and Real Estate

International Trade

Government and Public Sector

Manufacturing

Energy and Utilities

Retail and Commercial

Infrastructure Development

Telecommunications

Healthcare

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Commercial Operations

Procurement

Contract Administration

Project Management

Business Development

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Contract Manager

Project Manager

Legal Counsel

Compliance Officer

Risk Manager

Commercial Director

Procurement Manager

Business Development Manager

Bank Relationship Manager

Credit Manager

Financial Controller

Operations 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

Find the exact document you need

Performance Bank Guarantee Charges

UAE-compliant fee structure document for Performance Bank Guarantees, outlining charges and payment terms under UAE banking regulations.

find out more

Deferred Payment Bank Guarantee

A UAE law-governed bank guarantee that provides for scheduled future payments, typically used in international trade to secure deferred payment obligations.

find out more

Foreign Bank Guarantee

A UAE-governed bank guarantee issued by a foreign bank, providing financial security for commercial transactions with specific payment obligations upon demand.

find out more

Labour Bank Guarantee

A mandatory bank guarantee required under UAE law to secure workers' rights and financial entitlements, issued in favor of the Ministry of Human Resources and Emiratisation.

find out more

International Bank Guarantee

UAE-governed bank guarantee template incorporating local banking regulations and international standards for cross-border financial security.

find out more

Bank Guarantee Against Fd

A UAE-law governed banking document establishing terms for a bank guarantee secured against a fixed deposit, commonly used in commercial and government transactions.

find out more

Cheque Guarantee Letter

A UAE-governed formal guarantee instrument ensuring payment of specified cheque(s), providing additional security for beneficiaries under UAE commercial law.

find out more

Bank Guarantee Contract

A UAE-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon demand, subject to UAE Federal Laws and Central Bank regulations.

find out more

Bank Guarantee Against Property

A UAE law-governed agreement establishing a bank guarantee secured by real property, detailing security arrangements and enforcement rights under UAE jurisdiction.

find out more

Bank Financial Guarantee

A UAE-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon default of the principal party, subject to UAE Federal Law and Central Bank regulations.

find out more

Security Bank Guarantee

A UAE law-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon default of the principal party's obligations.

find out more

Letter Of Guarantee For Loan

A UAE law-governed guarantee instrument where a guarantor secures a borrower's loan obligations to a bank, providing additional security for the lending facility.

find out more

Bank Guarantee As Collateral Security

A UAE-law governed bank guarantee document where a bank provides security for a principal debtor's obligations to a beneficiary, subject to UAE banking regulations and commercial law.

find out more

Contract Performance Bank Guarantee

A UAE-governed bank guarantee that secures the performance obligations of a contractor/supplier, providing financial assurance to the project owner through an unconditional bank undertaking.

find out more

Post Bank Guarantee

A UAE-governed bank guarantee document providing financial security through an irrevocable undertaking by a bank to pay a specified sum upon demand.

find out more

Guarantee Cheque Against Advance Payment

UAE-governed agreement establishing terms for an advance payment secured by a guarantee cheque, including payment conditions and cheque presentation terms.

find out more

Bank Guarantee For Supply Of Goods

A UAE-governed bank guarantee securing payment obligations in goods supply transactions, issued by a bank to protect the buyer against supplier default.

find out more

Bank Deposit Government Guarantee

UAE-governed agreement establishing government guarantee for eligible bank deposits, setting out protection mechanisms and claim procedures under UAE federal law.

find out more

Bank Personal Guarantee

A UAE-law governed guarantee agreement where an individual personally guarantees a debtor's obligations to a bank, creating an enforceable security interest under UAE banking regulations.

find out more

Bank Standby Letter Of Credit

A UAE-governed bank guarantee instrument that provides payment security to beneficiaries in case of default by the applicant, subject to UAE banking laws and regulations.

find out more

Open Bank Guarantee

A UAE-law governed bank guarantee providing an independent, irrevocable undertaking to pay a specified sum upon demand, with an open-ended or automatically renewable duration.

find out more

Purchase Bank Guarantee

A UAE-governed bank guarantee securing payment obligations in purchase transactions, issued by a bank to protect sellers against buyer default.

find out more

Bank Guarantee Lost Original

A UAE law-governed declaration for obtaining a replacement for a lost bank guarantee, including necessary indemnities and undertakings.

find out more

Bank Account Government Guarantee

A UAE-governed bank guarantee instrument providing government entities with security over specified bank accounts, regulated under UAE federal banking and civil laws.

find out more

Construction Bank Guarantee

A UAE-governed bank guarantee document that provides financial security for construction project obligations, ensuring protection for project owners under UAE law.

find out more

Bank Guarantee By Government

A UAE-law governed financial instrument where a government entity provides a guarantee through a bank to secure specified obligations to a beneficiary.

find out more

Bank Endorsement Guarantee

A UAE-governed bank guarantee document where a bank guarantees its client's obligations to a third party, regulated by UAE Federal Laws and Central Bank regulations.

find out more

Authorization Letter To Collect Bank Guarantee

A UAE-compliant legal document authorizing a designated person to collect a bank guarantee on behalf of a company or individual.

find out more

Down Payment Bank Guarantee

A UAE-law governed bank guarantee securing advance payments made to contractors, providing financial security to project owners under UAE Federal Laws and Central Bank regulations.

find out more

Indirect Bank Guarantee

A UAE law-governed financial instrument where a foreign bank issues a guarantee through a local UAE bank, establishing terms and conditions for financial security in cross-border transactions.

find out more

Corporate Guarantee For Bank Loan

UAE-governed corporate guarantee agreement securing bank loan obligations, structured under UAE Civil Code and Banking regulations.

find out more

Bid Security Bank Guarantee

A UAE-governed bank guarantee that secures a bidder's obligations in a tender process, protecting the tender issuer against bid withdrawal or non-compliance with tender conditions.

find out more

Surety Bond Bank Guarantee

A UAE-governed bank guarantee document where a bank provides financial security for a principal's obligations to a beneficiary, structured under UAE Federal Laws.

find out more

Bank Guarantee Transferable

A UAE law-governed bank guarantee that allows the beneficiary to transfer their rights to receive payment to third parties, subject to specified conditions and Central Bank regulations.

find out more

Bank Guarantee First Demand

A UAE law-governed bank guarantee providing unconditional payment obligation upon first demand, commonly used as security in commercial transactions.

find out more

Advance Bank Guarantee

A UAE-law governed bank guarantee securing advance payments made by a beneficiary to a principal, ensuring refund if contractual obligations are not met.

find out more

Unsecured Bank Guarantee

A UAE law-governed Unsecured Bank Guarantee document establishing a bank's commitment to pay a specified sum to a beneficiary without requiring collateral from the applicant.

find out more

Standby Bank Guarantee

A UAE law-governed bank undertaking to pay a specified sum to a beneficiary upon the principal's default, subject to UAE Federal Laws and Central Bank regulations.

find out more

Financial Guarantee And Performance Guarantee

A UAE law-governed dual-purpose guarantee document that provides both financial security and performance assurance, typically issued by banks or financial institutions in commercial transactions.

find out more

Domestic Bank Guarantee

A UAE-governed bank guarantee document where a UAE bank provides a financial commitment to a beneficiary on behalf of its client, subject to UAE banking laws and regulations.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now