The Trade Reference Letter is a crucial document in the UAE business environment, where formal documentation of business relationships carries significant weight. This document is typically required when companies seek to establish new business relationships, apply for credit facilities, participate in tenders, or engage in significant commercial transactions. The letter, governed by UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and related regulations, provides third-party verification of a company's business conduct, payment history, and creditworthiness. It serves as a risk assessment tool for potential business partners and financial institutions, offering insights into a company's commercial reliability and standing in the market. In the UAE's international trading hub environment, Trade Reference Letters often play a pivotal role in facilitating both local and cross-border business relationships.

1. Letter Header: Company letterhead including full legal name, address, and contact details of the issuing company

2. Date and Reference: Current date and any reference numbers for tracking purposes

3. Recipient Details: Full name, title, and address of the recipient or their organization

4. Subject Line: Clear indication that this is a Trade Reference Letter for [Company Name]

5. Introduction: Statement confirming the purpose of the letter and the relationship between the issuing company and the subject company

6. Business Relationship Details: Duration and nature of business relationship between the parties

7. Payment History: Information about the subject company's payment behavior and credit terms

8. Transaction Volume: General indication of the scale of business conducted

9. Closing Statement: Professional closing with willingness to provide additional information

10. Signature Block: Name, title, and signature of the authorized representative