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A Supply of services agreement outlines the terms between a service provider and their client in the UAE, covering everything from deliverables and payment terms to service standards and confidentiality. These contracts are especially common in Dubai's bustling business districts, where companies regularly outsource IT support, consulting, maintenance, or professional services.

Under UAE Federal Law No. 8, these agreements must clearly specify service scope, duration, and compensation methods. They protect both parties by establishing clear performance metrics, detailing dispute resolution procedures, and defining how service quality will be measured. Local businesses often include specific provisions about Emiratisation requirements and compliance with UAE labor laws.

Use a Supply of services agreement before starting any significant service relationship in the UAE—especially for ongoing professional services, IT support, or consulting arrangements. This becomes crucial when engaging contractors for business-critical functions like software development, facilities management, or specialized technical support.

The agreement proves particularly valuable when dealing with UAE government entities or large corporations, where formal documentation is essential for compliance. It helps prevent disputes by clearly defining service levels, payment terms, and deliverables upfront. For services exceeding AED 50,000 or lasting beyond six months, having this formal agreement in place safeguards both parties and ensures alignment with UAE commercial laws.

• Supply And Service Agreement: Most comprehensive version, combining both product delivery and ongoing service support, ideal for tech companies in UAE free zones
• Electricity Supply Agreement: Specialized format for utility services, incorporating DEWA regulations and consumption-based billing structures
• Food Supply Contract: Tailored for F&B sector, including UAE food safety compliance and quality control measures
• Mou For Supply Of Goods: Preliminary framework agreement outlining basic terms before finalizing detailed service arrangements

• Service Providers: UAE-based companies or freelancers offering professional services, from IT consultants to maintenance firms, who need to formalize their service commitments
• Corporate Clients: Organizations in UAE free zones or mainland requiring external services, responsible for defining requirements and performance metrics
• Legal Departments: In-house counsel or external law firms drafting and reviewing Supply of services agreements to ensure UAE law compliance
• Procurement Teams: Officers managing vendor relationships and contract negotiations, especially in government entities
• Quality Assurance Managers: Staff monitoring service delivery against agreed standards and KPIs

• Service Details: Document exact scope, deliverables, timelines, and quality standards expected from the service provider
• Company Information: Gather trade licenses, TRN numbers, and authorized signatory details for both parties
• Payment Terms: Define rates, payment schedule, currency, and VAT implications under UAE tax laws
• Performance Metrics: Establish measurable KPIs and service level agreements aligned with industry standards
• Compliance Check: Review regulatory requirements, especially for regulated sectors like healthcare or financial services
• Documentation: Use our platform to generate a legally-sound agreement that incorporates all essential elements under UAE law

• Party Details: Full legal names, trade license numbers, and registered addresses of service provider and client
• Service Description: Detailed scope, deliverables, and performance standards as per UAE commercial practice
• Duration: Clear start date, end date, and renewal terms following UAE Civil Code requirements
• Payment Terms: Compensation details, VAT implications, and payment schedule aligned with UAE tax laws
• Termination Rights: Grounds for contract ending, notice periods, and consequences under UAE law
• Dispute Resolution: Specify UAE courts' jurisdiction or arbitration process in Dubai or Abu Dhabi
• Force Majeure: Local definition of exceptional circumstances affecting service delivery

A Supply of services agreement differs significantly from a Supply of goods agreement in several key aspects under UAE law. While both are commercial contracts, they serve distinct purposes and require different legal considerations.

• Nature of Exchange: Services agreements focus on ongoing performance and expertise delivery, while goods agreements deal with tangible product transfers
• Performance Metrics: Service agreements require detailed KPIs and quality standards; goods agreements emphasize specifications and delivery terms
• Legal Framework: Services fall under UAE Federal Law No. 8's service provisions, while goods follow UAE Commercial Transactions Law
• Duration Structure: Service agreements typically have ongoing terms with renewal options; goods agreements often cover discrete transactions
• Risk Allocation: Service contracts focus on professional liability and performance standards; goods contracts emphasize product defects and delivery risks