Suretyship Agreement for United Arab Emirates

Suretyship Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law, specifically structured under Federal Law No. 5 of 1985 (UAE Civil Code), that establishes a guarantee relationship where one party (the surety) undertakes to fulfill the obligations of another party (the principal debtor) to a third party (the beneficiary) if the principal debtor fails to do so. The agreement details the scope of the guarantee, conditions for enforcement, rights and obligations of all parties, and includes specific provisions compliant with UAE legal requirements and, where necessary, Sharia principles. It serves as a risk mitigation tool widely used in commercial and financial transactions within the UAE jurisdiction.

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
Suretyship Agreement

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 Suretyship Agreement?

The Suretyship Agreement is a crucial legal instrument in the UAE business environment, commonly used to secure commercial obligations and financial commitments. This document is essential when one party seeks to guarantee the performance or payment obligations of another party, providing security and comfort to the beneficiary. The agreement must comply with UAE Civil Code (Federal Law No. 5 of 1985) requirements, particularly Articles 1056-1093 governing suretyship contracts. It can be used in various contexts, from securing loan obligations to guaranteeing performance in construction projects, and can be structured to accommodate both conventional and Islamic finance requirements. The document typically includes detailed provisions on the scope of guarantee, enforcement mechanisms, and the rights and obligations of all parties involved, making it a vital tool for risk management in commercial transactions within the UAE.

What sections should be included in a Suretyship Agreement?

1. Parties: Identification of the Surety (Guarantor), the Principal Debtor, and the Beneficiary (Creditor)

2. Background: Context of the underlying obligation and the purpose of the suretyship

3. Definitions: Key terms used throughout the agreement

4. Scope of Guarantee: Clear definition of the obligations being guaranteed and the extent of the surety's liability

5. Nature of Guarantee: Specification that this is a continuing, irrevocable, and binding guarantee

6. Surety's Obligations: Detailed obligations of the surety, including payment terms and conditions

7. Representations and Warranties: Statements of fact and assurances from the surety regarding their capacity and authority

8. Enforcement and Claims: Process and conditions for making claims under the guarantee

9. Duration and Release: Term of the guarantee and conditions for discharge or release

10. Preservation of Rights: Beneficiary's rights preservation and waiver of surety's defenses

11. Notices: Communication requirements and contact details

12. Governing Law and Jurisdiction: Specification of UAE law and jurisdiction for dispute resolution

What sections are optional to include in a Suretyship Agreement?

1. Islamic Finance Compliance: Required when the agreement needs to be Sharia-compliant, including relevant provisions and structure

2. Counter-Indemnity: Include when the surety requires indemnification from the principal debtor

3. Security: When additional security is provided to support the guarantee

4. Multiple Sureties: Required when there is more than one surety, defining their respective obligations

5. Assignment and Transfer: Include if the rights under the guarantee need to be transferable

6. Costs and Expenses: Detailed provisions regarding costs when significant expenses are anticipated

7. Amendments and Variations: Required when flexibility for future changes needs to be built in

8. Language: Required when dual language versions are needed, specifying the prevailing language

What schedules should be included in a Suretyship Agreement?

1. Schedule 1 - Guaranteed Obligations: Detailed description of the underlying obligations being guaranteed

2. Schedule 2 - Form of Demand: Template for making claims under the guarantee

3. Schedule 3 - Security Details: Details of any security or collateral provided

4. Schedule 4 - Principal Debtor Information: Detailed information about the principal debtor and the primary obligation

5. Appendix A - Required Documents: List of documents required for guarantee enforcement

6. Appendix B - Payment Instructions: Banking and payment details for guarantee claims

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
Clauses
Relevant Industries

Banking and Financial Services

Construction and Real Estate

Manufacturing

Trading and Commerce

Oil and Gas

Infrastructure Development

Telecommunications

Healthcare

Hospitality

Retail

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Corporate Secretariat

Commercial

Credit

Business Development

Project Management

Relevant Roles

Legal Counsel

Chief Financial Officer

Risk Manager

Compliance Officer

Contract Manager

Credit Manager

Treasury Manager

Corporate Secretary

Business Development Manager

Project Manager

General Counsel

Finance Director

Commercial Director

Managing Director

Chief Executive Officer

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

Unregistered Sale Agreement With Possession

UAE-governed agreement enabling property sale and possession transfer prior to formal registration, with comprehensive protections for both parties.

find out more

Residential Tenancy Agreement Form

UAE-compliant residential lease agreement establishing terms and conditions between landlord and tenant under UAE Federal and Emirates law.

find out more

Standard Form Contract

UAE-compliant Standard Form Contract template for standardized business transactions, aligned with UAE Civil Code requirements.

find out more

Legal Agreement Between Two Parties

UAE-compliant legal agreement template establishing contractual relationships between two parties, incorporating UAE Civil Code requirements and Sharia principles.

find out more

Legal Binding Contract

A UAE law-compliant legally binding contract template incorporating essential elements required under UAE Civil Code and commercial legislation.

find out more

Residential Lease Agreement Form

UAE-compliant residential lease agreement establishing terms and conditions for property rental, subject to UAE Federal Laws and emirate-specific regulations.

find out more

Contract Agreement Form

UAE-compliant contract agreement template establishing formal terms and conditions between parties under UAE law.

find out more

Legally Binding Agreement

A UAE law-governed Legally Binding Agreement for establishing enforceable contractual relationships between parties operating under UAE jurisdiction.

find out more

Incorporation Agreement

UAE-governed agreement establishing a new company's legal structure and operational framework in compliance with Federal Law No. 32 of 2021.

find out more

Casual Worker Contract

UAE-compliant casual worker contract establishing flexible employment terms under Federal Decree-Law No. 33 of 2021.

find out more

Tooling Agreement

UAE-governed agreement establishing terms for tooling manufacture, supply, and usage in manufacturing processes, including ownership, maintenance, and quality requirements.

find out more

Representation Agreement

UAE-governed agreement establishing and regulating a principal-representative relationship in compliance with UAE Commercial Agency Law.

find out more

Provisional Agreement

A UAE-governed temporary contractual arrangement establishing interim terms and conditions while parties work towards a final agreement.

find out more

Preliminary Agreement

A UAE law-governed interim agreement establishing preliminary terms and conditions between parties while working towards a definitive agreement.

find out more

Lease With Option To Buy

UAE-governed agreement combining property lease terms with a future purchase option, compliant with federal and emirate-specific real estate regulations.

find out more

Contractual Agreement

A legally binding agreement under UAE law establishing contractual obligations between parties, compliant with UAE Civil Code requirements.

find out more

Partnership Agreement

UAE-governed agreement establishing and regulating a business partnership, compliant with UAE Commercial Companies Law and local regulations.

find out more

Rental Contract

UAE-compliant rental agreement establishing terms between landlord and tenant, subject to federal and emirate-specific rental laws.

find out more

Consulting Agreement

UAE-governed agreement establishing terms and conditions between a consultant and client for professional consulting services.

find out more

Supply Contract Form

UAE-governed contract template establishing terms for supply of goods, compliant with UAE Civil and Commercial Codes.

find out more

Business Contract

A UAE law-governed contract establishing commercial relationships between business entities, ensuring compliance with UAE Civil and Commercial Laws.

find out more

Umbrella Agreement

UAE-governed master agreement establishing framework terms for ongoing business relationships and subsequent agreements, compliant with UAE Federal Law.

find out more

Share Purchase Agreement

UAE-governed agreement for the sale and purchase of company shares, detailing transaction terms and conditions in compliance with UAE law.

find out more

Website Development Agreement

UAE-governed agreement for website development services, defining project scope, deliverables, and mutual obligations between developer and client.

find out more

Volunteer Contract

UAE-governed volunteer agreement establishing formal volunteering relationship and mutual obligations while complying with Federal Law No. 5 of 2018.

find out more

Virtual Assistant Contract

UAE-governed contract establishing terms and conditions for virtual assistant services, including service scope, confidentiality, and payment terms.

find out more

Vendor Contract

UAE law-governed agreement regulating the supply of goods/services between a customer and vendor, incorporating key UAE commercial law requirements.

find out more

Tripartite Contract

UAE-governed agreement establishing legal relationships and obligations between three parties, compliant with UAE Civil Code requirements.

find out more

Transfer Of Ownership Agreement

UAE-governed agreement that legally transfers ownership rights from one party to another, ensuring compliance with local laws and registration requirements.

find out more

Trading Agreement

UAE-governed agreement establishing terms and conditions for commercial trading relationships between parties, including purchase, sale, or distribution arrangements.

find out more

Tender Agreement

A UAE-governed agreement establishing the framework and requirements for competitive tender submissions, incorporating local procurement laws and regulations.

find out more

Simple Employment Contract

A UAE-compliant Simple Employment Contract establishing basic terms and conditions between employer and employee under UAE Labor Law.

find out more

Simple Contractor Agreement

UAE-compliant contractor agreement template establishing independent contractor relationships while ensuring legal compliance with UAE federal laws.

find out more

Teaming Agreement

A UAE-governed agreement establishing collaboration terms between parties for pursuing specific business opportunities, aligned with UAE Federal Laws.

find out more

Syndicated Loan Agreement

UAE law-governed agreement documenting terms of a multi-lender loan facility, incorporating local banking regulations and commercial law requirements.

find out more

Suretyship Agreement

A UAE law-governed agreement where a surety guarantees to fulfill another party's obligations to a beneficiary, structured under UAE Civil Code requirements.

find out more

Supplier Contract

UAE-governed agreement establishing terms and conditions for supply of goods/services between supplier and customer, compliant with UAE Federal Laws.

find out more

Supplier Agreement

UAE-governed agreement regulating the commercial relationship between supplier and customer for goods/services provision.

find out more

Subcontractor Agreement

UAE-governed agreement establishing terms and conditions for subcontracted works or services, ensuring compliance with local laws and regulations.

find out more

Strategic Partnership Agreement

UAE-governed agreement establishing strategic partnership terms, conditions, and collaborative framework between parties.

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