Shared Services Agreement for United Arab Emirates

Shared Services Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the framework for shared services arrangements between organizations or within corporate groups. The document outlines the scope of shared services, performance standards, cost allocation, governance structure, and operational procedures while ensuring compliance with UAE federal and local regulations. It addresses key aspects such as service delivery, performance metrics, data protection, confidentiality, and dispute resolution mechanisms specific to the UAE legal framework.

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What is a Shared Services Agreement?

The Shared Services Agreement is a critical document used when organizations wish to consolidate and optimize their operational functions through shared resource arrangements. This agreement, governed by UAE law, is particularly relevant in scenarios where companies seek to achieve economies of scale, standardize processes, or centralize support functions. The document encompasses detailed provisions for service delivery, performance standards, cost allocation, and governance structures, while ensuring compliance with UAE regulations including the Civil Code, Commercial Code, and relevant sector-specific legislation. It is commonly used in corporate restructuring, efficiency improvement initiatives, or when establishing group-wide service centers.

What sections should be included in a Shared Services Agreement?

1. Parties: Identification of the service provider and recipient entities, including their legal status and registration details

2. Background: Context of the agreement, relationship between parties, and purpose of the shared services arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Services Scope: Comprehensive description of the shared services to be provided

5. Service Levels: Performance standards, KPIs, and measurement criteria

6. Charges and Payment: Cost allocation methodology, payment terms, and invoicing procedures

7. Governance: Management structure, reporting requirements, and decision-making processes

8. Term and Termination: Duration of the agreement and circumstances for termination

9. Confidentiality: Protection of confidential information and trade secrets

10. Data Protection: Compliance with UAE data protection laws and data handling procedures

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. Force Majeure: Provisions for unforeseen circumstances affecting service delivery

13. Dispute Resolution: Procedures for resolving disputes under UAE law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Shared Services Agreement?

1. Technology Transfer: Include when shared services involve significant technology or system sharing

2. Intellectual Property Rights: Include when services involve creation or use of intellectual property

3. Staff Transfer: Include when employees will be transferred or seconded between parties

4. Business Continuity: Include for critical services requiring disaster recovery planning

5. Change Control: Include when service scope may require frequent modifications

6. Compliance with Specific Regulations: Include when services are in regulated sectors

7. Exit Management: Include when complex transition arrangements are needed post-termination

8. Security Requirements: Include when services involve sensitive operations or data

What schedules should be included in a Shared Services Agreement?

1. Service Descriptions: Detailed specifications of each service category

2. Service Levels and KPIs: Detailed performance metrics and measurement methodologies

3. Pricing and Cost Allocation: Detailed pricing structure and cost sharing mechanisms

4. Governance Procedures: Detailed procedures for service management and oversight

5. Contact Details: Key personnel and escalation contacts for both parties

6. Technical Requirements: Systems, infrastructure, and technical specifications

7. Form of Reports: Templates and formats for required service reports

8. Business Continuity Plan: Detailed procedures for service continuity

9. Exit Plan: Detailed procedures for service transition upon termination

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 Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Financial Services

Healthcare

Technology

Manufacturing

Real Estate

Retail

Energy

Telecommunications

Professional Services

Education

Hospitality

Construction

Transportation

Logistics

Relevant Teams

Legal

Finance

Operations

Human Resources

Information Technology

Procurement

Facilities Management

Risk and Compliance

Project Management

Business Development

Service Delivery

Administration

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Head of Shared Services

Legal Counsel

Operations Director

Finance Director

HR Director

IT Director

Procurement Manager

Facilities Manager

Service Delivery Manager

Contract Manager

Compliance Officer

Risk Manager

Project Manager

Business 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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