Sponsorship Agreement for United Arab Emirates

Sponsorship Agreement Template for United Arab Emirates

A legally binding agreement governed by UAE law that establishes a sponsorship relationship between a UAE national or company (sponsor) and a foreign entity (sponsored entity). The agreement details the rights, obligations, and responsibilities of both parties in compliance with UAE federal and emirate-specific regulations. It covers essential aspects such as sponsorship services, fees, term, compliance requirements, and termination provisions, ensuring alignment with UAE Commercial Companies Law and other relevant legislation. The document serves as a crucial framework for foreign businesses to establish and maintain their presence in the UAE market.

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What is a Sponsorship Agreement?

This Sponsorship Agreement template is designed for use in the United Arab Emirates, where foreign businesses often require local sponsorship to operate. The document is essential for compliance with UAE federal laws, including Federal Law No. 2 of 2015 (Commercial Companies Law) and related regulations. The Sponsorship Agreement outlines the complete relationship between the local sponsor and the sponsored entity, including detailed provisions for sponsorship services, fees, compliance requirements, and mutual obligations. It is particularly crucial for foreign entities establishing or maintaining their presence in the UAE market, ensuring clear documentation of the sponsor's role in facilitating business operations and governmental interactions. The agreement includes necessary protections for both parties while maintaining alignment with UAE legal requirements and business practices.

What sections should be included in a Sponsorship Agreement?

1. Parties: Details of the Local Sponsor (UAE National/Company) and the Sponsored Entity

2. Background: Context of the sponsorship arrangement and brief description of the parties' business activities

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

4. Scope of Sponsorship: Detailed description of sponsorship services and obligations of the local sponsor

5. Term and Renewal: Duration of the sponsorship agreement and conditions for renewal

6. Sponsor's Obligations: Detailed responsibilities of the sponsor including governmental liaison and administrative support

7. Sponsored Entity's Obligations: Responsibilities and commitments of the sponsored entity including compliance with local laws

8. Sponsorship Fees: Fee structure, payment terms, and payment schedule

9. Compliance with Laws: Obligations to comply with UAE laws and regulations

10. Confidentiality: Provisions for protecting confidential information of both parties

11. Termination: Grounds for termination and termination procedure

12. Post-Termination Obligations: Responsibilities and obligations of both parties after agreement termination

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

What sections are optional to include in a Sponsorship Agreement?

1. Power of Attorney: Required if sponsor will be granted specific powers to act on behalf of the sponsored entity

2. Non-Competition: Include when sponsor needs to be restricted from sponsoring competing businesses

3. Insurance: Include when specific insurance requirements need to be maintained by either party

4. Force Majeure: Include for protection against unforeseen circumstances preventing performance

5. Anti-Bribery and Corruption: Include for international companies or when required by corporate policies

6. Assignment and Subcontracting: Include when either party may need to transfer rights or delegate obligations

7. Change Control: Include when the scope of sponsorship services may need modification during the term

What schedules should be included in a Sponsorship Agreement?

1. Schedule 1 - Sponsorship Services: Detailed list of services to be provided by the sponsor

2. Schedule 2 - Fee Schedule: Detailed breakdown of sponsorship fees and payment terms

3. Schedule 3 - Required Licenses and Permits: List of licenses and permits to be maintained during the term

4. Schedule 4 - Key Contacts: Contact details of key personnel from both parties

5. Schedule 5 - Compliance Requirements: Specific regulatory and compliance requirements applicable to the sponsorship

6. Appendix A - Form of Power of Attorney: Template power of attorney document if required

7. Appendix B - Required Documents: List of documents required for various governmental processes

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
Clauses
Relevant Industries

Construction

Oil and Gas

Professional Services

Trading

Manufacturing

Technology

Real Estate

Healthcare

Education

Retail

Hospitality

Financial Services

Consulting

Maritime

Logistics

Relevant Teams

Legal

Compliance

Operations

Business Development

Finance

Corporate Affairs

Commercial

Risk Management

Administrative

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Legal Director

Compliance Officer

Country Manager

Business Development Manager

Operations Director

Corporate Secretary

General Counsel

Commercial Director

Chief Financial Officer

Regional Manager

Head of Legal

Business Owner

Company Secretary

Contracts 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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