Share Purchase Agreement for United Arab Emirates

Share Purchase Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that documents the terms and conditions for the sale and purchase of shares in a company. This document outlines the complete transaction structure, including purchase price, payment terms, warranties, and conditions precedent, while ensuring compliance with UAE Federal Law No. 32 of 2021 (Companies Law) and other relevant UAE regulations. It includes specific provisions for due diligence findings, representations and warranties, and post-completion obligations, adapted to meet UAE legal requirements and business practices.

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What is a Share Purchase Agreement?

A Share Purchase Agreement (SPA) is a crucial document used in corporate acquisitions and investments in the UAE, facilitating the transfer of company ownership through share sales. The agreement must comply with UAE Federal Law No. 32 of 2021 and related regulations, particularly regarding foreign ownership restrictions and commercial regulations. It is typically used when a company or individual wishes to acquire all or part of a target company's shares, requiring detailed provisions for purchase price, warranties, indemnities, and conditions precedent. The document becomes especially important in the UAE context due to specific local requirements around company ownership, commercial licensing, and foreign investment restrictions. It should be drafted with careful consideration of both UAE legal requirements and international best practices in M&A transactions.

What sections should be included in a Share Purchase Agreement?

1. Parties: Identification of the seller(s), purchaser(s) and the target company, including their full legal names and registration details

2. Background: Context of the transaction, including brief description of the target company and purpose of the agreement

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

4. Sale and Purchase: Core transaction terms including the shares being sold, purchase price, and payment mechanisms

5. Conditions Precedent: Conditions that must be satisfied before completion of the transaction

6. Pre-Completion Obligations: Obligations of parties between signing and completion, including conduct of business requirements

7. Completion: Mechanics of closing the transaction, including timing, location, and actions required

8. Warranties: Seller's representations and warranties about the company, shares, and business

9. Limitations on Liability: Limitations on warranty claims and general liability caps

10. Confidentiality: Obligations regarding confidential information and announcements

11. Further Assurance: Obligations to take additional actions necessary to give effect to the agreement

12. Notices: Process and requirements for formal communications between parties

13. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

What sections are optional to include in a Share Purchase Agreement?

1. Tag Along Rights: Include when minority shareholders need protection to sell their shares alongside majority shareholders

2. Drag Along Rights: Include when majority shareholders need the right to force minority shareholders to join in a sale

3. Non-Competition: Include when sellers need to be restricted from competing with the business post-sale

4. Management Provisions: Include when sellers will continue to be involved in management post-completion

5. Earn-out Provisions: Include when part of the purchase price is contingent on future performance

6. Employee Matters: Include when specific arrangements for key employees are part of the transaction

7. Tax Covenant: Include when specific tax indemnities or arrangements are required

8. Transitional Services: Include when seller will provide services to the business for a period post-completion

What schedules should be included in a Share Purchase Agreement?

1. Details of the Company: Complete corporate information including share capital, directors, and subsidiaries

2. Conditions Precedent: Detailed list of all conditions to be satisfied before completion

3. Completion Requirements: Detailed list of documents and actions required at completion

4. Warranties: Full set of warranties given by the seller

5. Properties: Details of all real estate owned or leased by the company

6. Intellectual Property: Schedule of all IP owned or licensed by the company

7. Material Contracts: List and details of key commercial contracts

8. Employee Information: Details of employees, benefits, and employment terms

9. Financial Information: Recent financial statements and management accounts

10. Disclosure Letter: Seller's disclosures against the warranties

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

Agreement Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Financial Services

Technology

Real Estate

Manufacturing

Healthcare

Retail

Energy

Telecommunications

Professional Services

Construction

Hospitality

Trading

Media

Transportation

Education

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Business Development

Executive Leadership

Investment

Risk Management

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Corporate Lawyer

Legal Counsel

Investment Director

M&A Director

Business Development Manager

Company Secretary

Finance Director

General Counsel

Compliance Officer

Corporate Development Manager

Investment Manager

Board Director

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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