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Due Diligence Letter Of Intent for United Arab Emirates

Due Diligence Letter Of Intent Template for United Arab Emirates

A comprehensive preliminary document governed by UAE law that outlines the framework for conducting due diligence investigations in potential business transactions. This document establishes the parameters for information sharing, confidentiality obligations, and the scope of due diligence activities while complying with UAE Civil Code requirements and local business practices. It serves as a formal expression of intent between parties to proceed with detailed investigations while protecting both parties' interests under UAE jurisdiction.

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What is a Due Diligence Letter Of Intent?

The Due Diligence Letter of Intent is a crucial preliminary document used in the UAE business environment when parties are contemplating significant business transactions such as mergers, acquisitions, or major investments. This document, while primarily non-binding except for specific provisions like confidentiality, sets the framework for the due diligence process while adhering to UAE legal requirements. It's particularly important in the UAE context where business relationships often combine international standards with local legal and cultural considerations. The document typically precedes more detailed agreements and helps parties establish clear parameters for information sharing, timeline expectations, and resource allocation while maintaining confidentiality and compliance with UAE regulations.

What sections should be included in a Due Diligence Letter Of Intent?

1. Sender and Recipient Details: Full legal names and addresses of both parties, including company registration details as per UAE requirements

2. Date: Date of the letter as per both Gregorian and Hijri calendars (standard practice in UAE)

3. Subject Line: Clear identification of the document as a Due Diligence Letter of Intent and brief reference to the proposed transaction

4. Transaction Overview: Brief description of the proposed transaction and its primary objectives

5. Due Diligence Scope: Outline of the areas to be covered in the due diligence investigation

6. Information Access: Details of what information will be made available and how it can be accessed

7. Timeline: Proposed schedule for the due diligence process and key milestones

8. Confidentiality Statement: Clear statement regarding the confidential nature of the process and information shared

9. Non-Binding Nature: Express statement that the LOI is non-binding except for specified provisions

10. Governing Law: Statement that the letter is governed by UAE law

11. Signature Blocks: Space for authorized signatures from both parties

What sections are optional to include in a Due Diligence Letter Of Intent?

1. Exclusivity Period: Optional clause granting exclusive negotiation rights for a specified period - include when requested by the investigating party

2. Cost Allocation: Optional section detailing how due diligence costs will be shared - include when significant costs are anticipated

3. Break Fee: Optional clause specifying any break fees - include in high-value transactions or when specifically negotiated

4. Regulatory Compliance: Optional section addressing specific regulatory requirements - include when dealing with regulated industries

5. Third-Party Involvement: Optional section detailing the role of advisors and consultants - include when external parties will be involved in the process

What schedules should be included in a Due Diligence Letter Of Intent?

1. Schedule A - Due Diligence Checklist: Preliminary list of documents and information required for the due diligence process

2. Schedule B - Timeline and Key Dates: Detailed timeline showing key milestones and deadlines for the due diligence process

3. Schedule C - Authorized Representatives: List of authorized representatives from each party who will be involved in the due diligence process

4. Schedule D - Confidentiality Requirements: Detailed confidentiality and information handling procedures

5. Appendix 1 - Data Room Rules: If using a data room, rules and procedures for access and use

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions






























Clauses


























Relevant Industries

Real Estate & Construction

Financial Services

Technology & IT

Healthcare & Pharmaceuticals

Energy & Natural Resources

Retail & Consumer Goods

Manufacturing & Industrial

Hospitality & Tourism

Transportation & Logistics

Media & Entertainment

Education

Professional Services

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Risk Management

Compliance

Business Development

Investment

Due Diligence

Corporate Secretariat

Executive Leadership

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

General Counsel

Legal Director

Corporate Development Director

Investment Manager

Due Diligence Manager

Mergers & Acquisitions Director

Business Development Manager

Finance Director

Risk Management Officer

Compliance Officer

Corporate Secretary

Investment Analyst

Legal Counsel

Transaction Advisory Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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