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Private Offering Memorandum Template for United Arab Emirates

A comprehensive legal document used in the United Arab Emirates for private capital raising, governed by UAE Federal Law and SCA regulations. The document provides detailed information about a private offering of securities to qualified investors, including company information, risk factors, financial data, and investment terms. It serves as the primary disclosure document for potential investors while ensuring compliance with UAE securities laws and regulations, particularly SCA Board of Directors' Decision No. (13/R.M) of 2021 regarding private placements.

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What is a Private Offering Memorandum?

A Private Offering Memorandum is a crucial document used in the United Arab Emirates when a company seeks to raise capital through a private placement of securities. It must comply with UAE Federal Law and Securities and Commodities Authority (SCA) regulations, particularly regarding disclosure requirements and investor qualifications. The document provides comprehensive information about the investment opportunity, including business operations, financial statements, risk factors, and subscription procedures. It is specifically designed for qualified investors as defined by UAE law and typically used for raising capital without a public offering. The memorandum must include all material information that would enable potential investors to make an informed investment decision while adhering to UAE private placement regulations.

What sections should be included in a Private Offering Memorandum?

1. Important Notice to Investors: Disclaimers, regulatory statements, and distribution restrictions

2. Executive Summary: Overview of the offering, company, and key investment highlights

3. Offering Overview: Detailed terms of the offering including security type, price, minimum investment, and subscription procedures

4. Risk Factors: Comprehensive disclosure of all material risks related to the investment

5. Company Overview: Detailed description of the business, operations, history, and strategy

6. Management and Corporate Governance: Information about key executives, board members, and governance structure

7. Financial Information: Historical financial statements, projections, and key financial metrics

8. Use of Proceeds: Detailed breakdown of how the raised funds will be utilized

9. Investment Terms and Conditions: Detailed legal terms governing the investment

10. Subscription Process: Step-by-step instructions for participating in the offering

11. Tax Considerations: Overview of relevant UAE tax implications for investors

12. Legal and Regulatory Matters: Relevant legal information and regulatory compliance statements

What sections are optional to include in a Private Offering Memorandum?

1. Industry Analysis: Detailed market and industry overview, used when the company operates in a specialized or complex sector

2. Environmental, Social and Governance (ESG): ESG policies and initiatives, included when targeting ESG-conscious investors

3. Exit Strategy: Potential exit mechanisms and timelines, included for private equity or venture capital-style investments

4. Property Portfolio: Detailed real estate assets description, included for real estate-based offerings

5. Technical Information: Technical specifications and details, included for technology or industrial companies

6. Shariah Compliance: Islamic finance compliance details, included when targeting Islamic investors

7. Regulatory Framework: Detailed regulatory analysis, included for heavily regulated industries

What schedules should be included in a Private Offering Memorandum?

1. Subscription Agreement: Legal agreement for subscribing to the offering

2. Constitutional Documents: Company's memorandum and articles of association

3. Audited Financial Statements: Detailed financial statements for the past 3 years

4. Legal Opinion: Legal opinion from qualified UAE counsel

5. KYC Requirements: Required documentation for investor verification

6. Corporate Authorizations: Relevant corporate approvals and resolutions

7. Material Contracts: Summaries of significant agreements affecting the business

8. Valuation Report: Independent valuation report if applicable

9. Management Service Agreements: Key management and service contracts

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

Publisher

Genie AI

Document Type

Offering Memorandum

Cost

Free to use

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