Document background
The Inter Company Loan Agreement is essential for UAE-based corporate groups managing internal financing arrangements between affiliated entities. This document is typically used when one company within a group provides financing to another group company, whether for operational needs, expansion, or restructuring purposes. The agreement must comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and UAE Central Bank regulations, particularly regarding related party transactions. It includes crucial elements such as loan terms, interest calculations, security provisions, and default remedies, while potentially incorporating Sharia-compliant structures if required. The document is particularly important for UAE companies operating across multiple sectors or free zones, ensuring proper documentation of intercompany financial relationships and compliance with local regulatory requirements.
