Document background
The Sale And Buy Back Agreement is a sophisticated financial instrument used in the UAE market to facilitate temporary transfer of asset ownership while providing financing solutions. This document type is particularly relevant when parties seek to structure financing arrangements in compliance with both UAE civil law and, where required, Islamic finance principles. It is commonly used in asset financing, liquidity management, and structured finance transactions. The agreement details the initial sale transaction, specifies the buyback terms, addresses risk allocation during the interim period, and ensures compliance with UAE regulatory requirements including registration and transfer procedures. It's especially useful in situations where traditional lending structures may not be preferred or permitted, offering a legitimate alternative that provides financial flexibility while maintaining legal certainty under UAE jurisdiction.
