Create a bespoke document in minutes,聽or upload and review your own.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership聽of your information
Investment Agreement
I need an investment agreement for a joint venture in the UAE, outlining the capital contributions, profit-sharing ratios, and management responsibilities of each party. The agreement should comply with local regulations, include a dispute resolution mechanism, and have a clause for exit strategies.
What is an Investment Agreement?
An Investment Agreement outlines the terms and conditions when someone puts money into a business venture in the UAE. It spells out key details like the investment amount, ownership stakes, and how profits will be shared between the investor and the company receiving funds.
Under UAE commercial law, these agreements protect both parties by clearly stating investor rights, management roles, and exit strategies. They're especially important in UAE free zones and mainland businesses, where different ownership rules apply. A well-crafted investment agreement also needs to comply with specific Emirati regulations about foreign investment caps and local partnership requirements.
When should you use an Investment Agreement?
Use an Investment Agreement when bringing external funding into your UAE business venture, especially for significant capital injections or strategic partnerships. This document becomes essential before accepting investments from venture capitalists, angel investors, or institutional funds looking to acquire shares in your company.
The agreement proves particularly valuable in UAE free zones and mainland businesses when structuring complex investment rounds, defining shareholder rights, or establishing clear governance frameworks. It's crucial for protecting both parties during major business expansion phases, cross-border investments, or when setting up joint ventures that need to comply with UAE foreign ownership regulations.
What are the different types of Investment Agreement?
- Contract Agreement For Investment: Standard comprehensive agreement for direct equity investments, detailing ownership stakes and voting rights
- Investment Agreement Between Two Parties: Simplified bilateral agreement often used for private investments or joint ventures in UAE mainland companies
- Future Equity Agreement: Used for convertible investments where funding converts to equity at a later date, popular in UAE startup ecosystems
- Investment Agreement Letter: Brief, initial document outlining key investment terms before detailed agreements
- Repurchase Agreement: Specialized agreement allowing companies to buy back shares under specific conditions
Who should typically use an Investment Agreement?
- Business Owners: UAE entrepreneurs and company founders seeking external funding to grow their businesses, particularly in free zones and mainland companies
- Investors: Individual angel investors, venture capital firms, or institutional funds looking to deploy capital in UAE businesses
- Legal Counsel: Corporate lawyers who draft and review agreements to ensure compliance with UAE investment laws and regulations
- Financial Advisors: Professionals who structure investment terms and validate financial projections
- Corporate Officers: Company directors and executives who negotiate and execute agreements on behalf of their organizations
- Government Authorities: UAE regulatory bodies that oversee foreign investment compliance and corporate governance
How do you write an Investment Agreement?
- Company Details: Gather complete legal information for all parties, including trade licenses, shareholder records, and UAE entity registration documents
- Investment Structure: Define investment amount, valuation, ownership percentages, and any staged payment terms
- Governance Rights: Outline voting rights, board seats, and management control provisions under UAE corporate law
- Due Diligence: Review financial statements, business plans, and existing contracts affecting the investment
- Compliance Check: Verify alignment with UAE foreign ownership restrictions and free zone regulations
- Exit Terms: Specify conditions for share transfers, buy-back options, and dispute resolution mechanisms
- Documentation: Use our platform to generate a legally compliant agreement that includes all required elements
What should be included in an Investment Agreement?
- Party Identification: Full legal names, UAE registration details, and authorized signatories of all parties
- Investment Terms: Precise investment amount, payment schedule, and valuation methodology
- Ownership Structure: Share allocation, voting rights, and compliance with UAE foreign ownership limits
- Management Rights: Board representation, decision-making authority, and operational control provisions
- Financial Provisions: Profit distribution, dividend policies, and capital contribution requirements
- Exit Mechanisms: Share transfer restrictions, tag-along rights, and buy-back provisions
- Governing Law: Explicit reference to UAE law and preferred dispute resolution method
- Compliance Statement: Confirmation of adherence to UAE commercial laws and free zone regulations
What's the difference between an Investment Agreement and an Investment Agreement Term Sheet?
An Investment Agreement differs significantly from an Investment Agreement Term Sheet in several key aspects under UAE law. While both documents relate to investment transactions, they serve distinct purposes and have different legal weights.
- Legal Binding: Investment Agreements are fully binding contracts, while Term Sheets typically serve as preliminary documents outlining key terms but aren't usually legally enforceable
- Detail Level: Investment Agreements contain comprehensive legal provisions, warranties, and complete transaction terms; Term Sheets offer bullet-point summaries of main commercial terms
- Timing: Term Sheets come first during negotiations, followed by the detailed Investment Agreement once parties agree on basic terms
- Documentation: Investment Agreements require formal execution and often UAE government registration; Term Sheets usually need only simple signatures
- Legal Protection: Investment Agreements provide full legal recourse and enforcement rights; Term Sheets mainly serve as negotiation frameworks
Download our whitepaper on the future of AI in Legal
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 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
Our bank-grade security infrastructure undergoes regular external audits
We are ISO27001 certified, so your data is secure
Organizational security
You retain IP ownership of your documents
You have full control over your data and who gets to see it
Innovation in privacy:
Genie partnered with the Computational Privacy Department at Imperial College London
Together, we ran a 拢1 million research project on privacy and anonymity in legal contracts
Want to know more?
Visit our for more details and real-time security updates.
Read our Privacy Policy.