Document background
Forward Funding Agreements are essential instruments in UAE real estate development, particularly for large-scale commercial and residential projects where developers seek upfront funding. These agreements are commonly used when a developer has identified a development opportunity but requires substantial funding to execute the project. The Forward Funding Agreement establishes the entire framework for the development funding, including land acquisition, construction costs, and development obligations, while ensuring compliance with UAE federal laws and emirate-specific regulations. The document addresses key aspects such as payment mechanisms, construction monitoring, risk allocation, and completion requirements, making it particularly relevant for projects requiring significant capital investment and long-term development timelines.
