Document background
A Credit Facility Agreement is essential for documenting lending arrangements in the UAE banking sector. This agreement type is used when a financial institution extends credit to a borrower, whether for general corporate purposes, specific projects, or asset financing. The document must comply with UAE Federal laws, particularly the UAE Central Bank Law and Commercial Code, and may need to accommodate both conventional and Islamic financing structures. It includes comprehensive provisions covering facility terms, conditions precedent, security arrangements, covenants, and enforcement mechanisms. The agreement is particularly important in the UAE context due to specific local requirements regarding interest calculations, security perfection, and banking regulations.
