Sponsorship Contract for United Arab Emirates

Sponsorship Contract Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the sponsorship relationship between a UAE-based sponsor and a sponsored party. The document outlines the terms and conditions of sponsorship, including visa facilitation, legal representation, and compliance with UAE immigration requirements. It incorporates essential provisions required by UAE Federal Labor Law and Immigration regulations, detailing the rights, obligations, and responsibilities of both parties, financial arrangements, and termination conditions. The agreement ensures compliance with local laws while protecting the interests of both the sponsor and the sponsored party.

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What is a Sponsorship Contract?

The UAE Sponsorship Contract is a fundamental document required for foreign individuals and companies seeking to establish a presence or work in the United Arab Emirates. This contract type is necessitated by the UAE's sponsorship (kafala) system, which requires foreign workers and businesses to have a local sponsor. The document outlines the sponsor's responsibilities in facilitating visas, permits, and legal representation, while also defining the sponsored party's obligations and compliance requirements. It's particularly crucial for businesses establishing operations in the UAE, professionals seeking employment, and companies engaging in commercial activities. The agreement must comply with UAE Federal Laws, including UAE Federal Decree-Law No. 33 of 2021 (Labor Law) and Federal Decree-Law No. 29 of 2021 (Immigration Law), ensuring all aspects of the sponsorship relationship are legally protected and properly documented.

What sections should be included in a Sponsorship Contract?

1. Parties: Identification of the Sponsor and Sponsored Party with full legal names and details

2. Background: Context of the sponsorship relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including 'Sponsorship Period', 'Sponsorship Services', etc.

4. Scope of Sponsorship: Detailed description of sponsorship services and support to be provided

5. Term and Duration: Period of sponsorship, including start date and end date

6. Sponsor Obligations: Legal responsibilities of the sponsor including visa processing, permits, and other support

7. Sponsored Party Obligations: Responsibilities and commitments of the sponsored party

8. Financial Terms: Sponsorship fees, payment schedule, and financial obligations of both parties

9. Compliance Requirements: Obligations to comply with UAE laws, regulations, and immigration requirements

10. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

11. Termination: Circumstances and process for ending the sponsorship relationship

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

13. Notices: Process and contact details for formal communications between parties

What sections are optional to include in a Sponsorship Contract?

1. Insurance: Required when specific insurance coverage needs to be maintained by either party

2. Confidentiality: Required when sensitive information will be shared between parties

3. Non-Competition: Optional clause to restrict sponsored party's activities during and after sponsorship

4. Force Majeure: Optional provision for unforeseen circumstances affecting contract performance

5. Assignment: Required when transfer of rights needs to be addressed

6. Intellectual Property: Required when sponsorship involves use of trademarks or other IP

7. Marketing Rights: Required for sponsorships involving promotional or advertising rights

What schedules should be included in a Sponsorship Contract?

1. Schedule 1 - Services Description: Detailed scope of sponsorship services and support

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

3. Schedule 3 - Required Documents: List of documents required for visa and immigration processes

4. Schedule 4 - Contact Details: Key contact information for both parties

5. Appendix A - Compliance Checklist: Checklist of regulatory requirements and compliance obligations

6. Appendix B - Power of Attorney: If required for sponsor to act on behalf of sponsored party

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 Industries

Professional Services

Construction

Healthcare

Education

Technology

Retail

Manufacturing

Hospitality

Financial Services

Real Estate

Energy

Media and Entertainment

Transportation and Logistics

Relevant Teams

Legal

Human Resources

Compliance

Government Relations

Operations

Administration

Risk Management

Corporate Services

Executive Leadership

Business Development

Relevant Roles

Legal Counsel

HR Director

Immigration Specialist

Compliance Officer

Government Relations Manager

Business Development Manager

Operations Director

Managing Director

Chief Executive Officer

Administrative Manager

PRO (Public Relations Officer)

Risk Manager

Contract Manager

Corporate Services 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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