Legal Glossary

Key legal terms and definitions for doing business across the UAE, Saudi Arabia, Qatar, France, and the wider GCC — explained in plain language with jurisdiction-specific context.

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Corporate & Commercial

Free Zone Company

شركة المنطقة الحرة

A company established within a designated free zone in the UAE or other GCC states, benefiting from 100% foreign ownership, zero corporate tax (historically), customs duty exemptio…

corporate structuringregulatory compliance

Commercial Licence (Trade Licence)

الرخصة التجارية

A government-issued permit required to conduct business in the UAE and other GCC states. Commercial licences specify the authorised business activities, trade name, and legal form …

corporate structuringregulatory compliance

Memorandum of Association (MOA)

عقد التأسيس

A foundational legal document filed during company incorporation that defines the company's name, registered office, objects, share capital, liability of members, and the names of …

corporate structuringcontract drafting

Shareholder Agreement (SHA)

اتفاقية المساهمين

A private contract between the shareholders of a company that governs their rights, obligations, and the management of their relationship. Unlike the MOA/Articles, a shareholder ag…

corporate structuringjoint ventures

Joint Venture Agreement (JVA)

اتفاقية المشروع المشترك

A contractual arrangement between two or more parties to combine resources, expertise, or capital for a specific project or ongoing business activity while remaining separate legal…

joint venturescorporate structuring

Special Purpose Vehicle (SPV)

شركة ذات غرض خاص

A separate legal entity created for a specific, narrow purpose — typically to isolate financial risk, hold assets, or facilitate a specific transaction. SPVs are extensively used i…

corporate structuringbanking finance

UAE Corporate Tax

ضريبة الشركات في الإمارات

A federal tax on business profits introduced by Federal Decree-Law No. 47 of 2022, effective for financial years starting on or after 1 June 2023. The standard rate is 9% on taxabl…

corporate structuringregulatory compliance

Economic Substance Regulations (ESR)

لوائح الجوهر الاقتصادي

Regulations requiring UAE-licensed entities conducting 'relevant activities' to demonstrate adequate economic substance in the UAE — meaning sufficient employees, expenditure, phys…

corporate structuringregulatory compliance

Value Added Tax (VAT) — UAE

ضريبة القيمة المضافة

An indirect consumption tax levied at 5% on the supply of goods and services in the UAE, introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017. VAT registration is ma…

regulatory compliancecorporate structuring

Tag-Along & Drag-Along Rights

حقوق الانضمام والسحب

Shareholder protection mechanisms typically found in shareholder agreements and investment documents. Tag-along rights (co-sale rights) allow minority shareholders to join a sale i…

corporate structuringma advisory

Power of Attorney (POA)

التوكيل

A legal instrument authorising one person (the agent/attorney-in-fact) to act on behalf of another (the principal) in specified legal, financial, or business matters. In the UAE, P…

corporate structuringreal estate law

Construction & Infrastructure

FIDIC Contract

عقد فيديك

A suite of standard-form construction contracts published by the Fédération Internationale des Ingénieurs-Conseils (FIDIC), headquartered in Geneva. FIDIC contracts are the global …

construction lawcontract drafting

EPC Contract (Engineering, Procurement & Construction)

عقد الهندسة والتوريد والبناء

A single-point-responsibility contract where the contractor assumes responsibility for the engineering design, procurement of materials and equipment, and construction of the facil…

construction lawcontract drafting

Liquidated Damages (LDs)

التعويضات المحددة مسبقاً

A pre-agreed sum specified in the contract as compensation for a specific breach — most commonly for delay in achieving project completion (delay LDs) or failure to meet performanc…

construction lawdispute resolution

Variation Order (Change Order)

أمر التغيير

A formal instruction from the employer (or Engineer under FIDIC) directing the contractor to alter the scope, quality, quantity, sequence, or timing of the works. Variations are on…

construction lawcontract drafting

Extension of Time (EOT)

تمديد المدة

An adjustment to the contractual completion date granted to the contractor when a qualifying delay event occurs that is not the contractor's fault. Common entitling events under FI…

construction lawdispute resolution

Concurrent Delay

التأخير المتزامن

A situation where two or more independent delay events — one attributable to the employer and one to the contractor — occur simultaneously and each independently would have caused …

construction lawdispute resolution

Dispute Avoidance/Adjudication Board (DAAB)

مجلس تجنب/فصل النزاعات

A standing panel of one or three independent experts appointed at the start of a FIDIC 2017 contract to help the parties avoid disputes and, where disputes arise, to provide bindin…

construction lawdispute resolution

Performance Bond (Performance Guarantee)

كفالة حسن التنفيذ

A financial guarantee — typically 10% of the contract price — issued by a bank or insurance company to the employer as security for the contractor's performance obligations. If the…

construction lawbanking finance

Retention Money

مبالغ الضمان المحتجزة

A percentage of each interim payment (typically 5-10%) withheld by the employer as security for the contractor's obligation to remedy defects during the Defects Notification Period…

construction lawdispute resolution

Banking & Finance

Sukuk (Islamic Bond)

صكوك

Sharia-compliant financial certificates representing proportional undivided ownership in an underlying tangible asset, usufruct, or investment. Unlike conventional bonds (which are…

banking financeregulatory compliance

Murabaha (Cost-Plus Financing)

مرابحة

A Sharia-compliant sale transaction where the financier purchases an asset and resells it to the customer at a disclosed cost plus an agreed profit margin, with deferred payment. U…

banking finance

Ijara (Islamic Lease)

إجارة

A Sharia-compliant leasing arrangement where the financier (lessor) purchases an asset and leases it to the customer (lessee) for an agreed rental payment over a specified period. …

banking financereal estate law

Sharia Compliance (in Finance)

الامتثال للشريعة الإسلامية

The requirement that financial products, transactions, and institutional operations conform to the principles of Islamic jurisprudence (fiqh al-muamalat). Core prohibitions include…

banking financeregulatory compliance

Project Finance

تمويل المشاريع

A financing structure for large-scale infrastructure and industrial projects where the debt is repaid primarily from the project's cash flows, with the project's assets, rights, an…

banking financeenergy law

Anti-Money Laundering & Counter-Terrorism Financing (AML/CTF)

مكافحة غسل الأموال وتمويل الإرهاب

The regulatory framework requiring financial institutions, designated non-financial businesses and professions (DNFBPs), and virtual asset service providers (VASPs) to implement me…

banking financeregulatory compliance

Escrow Account (Real Estate)

حساب الضمان

A regulated trust account where funds from off-plan property buyers are held by an independent escrow agent and released to the developer only upon achieving specified construction…

real estate lawbanking finance

Employment & Labour

End-of-Service Gratuity

مكافأة نهاية الخدمة

A statutory lump-sum payment due to employees upon termination of employment in the UAE and other GCC states. Under UAE Federal Decree-Law No. 33 of 2021 (Labour Law), employees wh…

employment law

UAE Employment Contract

عقد العمل الإماراتي

A written agreement between employer and employee governed by UAE Federal Decree-Law No. 33 of 2021 (effective 2 February 2022). The 2021 law abolished the distinction between limi…

employment lawcontract drafting

Non-Compete Clause (Restrictive Covenant)

شرط عدم المنافسة

A contractual provision restricting an employee's ability to work for a competitor or start a competing business after leaving employment. Under UAE Labour Law (Article 10 of Feder…

employment lawcontract drafting

Emiratisation (Nationalisation Quotas)

التوطين

The UAE government's workforce nationalisation policy requiring private sector companies to hire UAE nationals at prescribed ratios. Under the current framework (Ministerial Resolu…

employment lawregulatory compliance

UAE Golden Visa

الإقامة الذهبية

A long-term residence visa (5 or 10 years) granting holders the right to live, work, and study in the UAE without requiring a national sponsor. Introduced in 2019 and expanded sign…

employment lawcorporate structuring

Dispute Resolution

International Arbitration

التحكيم الدولي

A private, binding dispute resolution mechanism where parties submit their dispute to one or more arbitrators whose decision (the 'award') is final and enforceable internationally …

dispute resolutionconstruction law

Mediation

الوساطة

A voluntary, non-binding dispute resolution process where an independent mediator facilitates negotiation between the parties to help them reach a mutually acceptable settlement. U…

dispute resolution

Enforcement of Foreign Judgments

تنفيذ الأحكام الأجنبية

The process of having a court judgment issued in one country recognised and enforced in another. Unlike arbitral awards (governed by the New York Convention), there is no universal…

dispute resolution

Force Majeure

القوة القاهرة

An unforeseeable, irresistible event beyond the control of the parties that makes contractual performance impossible. Under UAE Civil Code (Article 273), if force majeure makes per…

dispute resolutioncontract drafting

Regulatory & Compliance

UAE Personal Data Protection Law (PDPL)

قانون حماية البيانات الشخصية

Federal Decree-Law No. 45 of 2021 (as amended by Federal Decree-Law No. 44 of 2024), the UAE's comprehensive data protection framework establishing rules for the collection, proces…

regulatory compliance

UAE Competition Law

قانون المنافسة الإماراتي

Federal Law No. 4 of 2012 (as amended by Federal Decree-Law No. 36 of 2023) regulating anti-competitive practices, abuse of dominant position, and economic concentrations (mergers)…

regulatory compliancema advisory

Commercial Agency Law (UAE)

قانون الوكالات التجارية

Federal Law No. 18 of 1981 (as amended) governing the appointment of commercial agents to distribute products or services in the UAE. Under this law, only UAE nationals or companie…

corporate structuringregulatory compliance

Beneficial Ownership (UBO)

الملكية الحقيقية

The natural person(s) who ultimately own or control a legal entity, directly or indirectly. Under UAE AML regulations (Cabinet Decision No. 58 of 2020 on the Regulation of Benefici…

regulatory compliancecorporate structuring

Sanctions Compliance

الامتثال للعقوبات

The framework for ensuring compliance with international economic sanctions — government-imposed restrictions on trade, financial transactions, and dealings with designated countri…

regulatory compliancebanking finance

Intellectual Property Protection (GCC)

حماية الملكية الفكرية

The legal framework for protecting patents, trademarks, copyrights, trade secrets, and industrial designs across the GCC states. In the UAE, IP protection is governed by: Federal D…

intellectual propertyregulatory compliance

Waqf (Islamic Endowment)

وقف

An irrevocable dedication of property or assets under Islamic law for charitable, religious, or family purposes. Once a waqf is established, the dedicated property cannot be sold, …

real estate lawcorporate structuring

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