Document background
The Intercompany Loan Agreement Template is designed for use in the United Arab Emirates by companies seeking to establish formal lending arrangements within their corporate group structure. This document becomes essential when one group entity wishes to provide financing to another group entity, whether for operational needs, expansion, or strategic purposes. The template incorporates key requirements under UAE law, including compliance with the UAE Commercial Companies Law, Central Bank regulations, and economic substance requirements. It provides comprehensive coverage of loan terms, security arrangements, and regulatory compliance measures, with flexibility to accommodate both conventional and Islamic financing structures. The agreement is particularly relevant for multinational companies operating multiple entities in the UAE's free zones and mainland, ensuring proper documentation of intra-group financing while meeting transfer pricing and corporate governance requirements.
