• Radha Stirling

Contractual Protection for Entrepreneurs in the UAE… Increasing success in a positive way


You arrive in the UAE, possibly having already negotiated an agreement with a local Emirati or fellow expat. At such an exciting and productive time, you are full of enthusiasm and you and your business partner are the best of friends, a true team, goals aligned; millions to make.


In all of the excitement, remember that not all business friendships will remain in tact; and the person you feel the closest to right now, could one day be your least favourite person, your litigious opponent, even your worst enemy.


The destruction of a partnership can be largely outside of your control, financially motivated by greed, a conflict of personalities, external negative influences, or purely a change in the alignment of your goals. Sometimes partnerships fail when a business does not perform as well as anticipated while other times they fail because they are performing so well, that greed kicks in.


Either way, in the beginning when you are excited and on the best of terms, there are some things that you can do to prevent the partnership dissolving.


Take off your friendship cap and make a point of contracting your arrangement in writing to increase protection for both parties. Not only does a contract legally offer protection, but it also forces both parties to seriously discuss their roles, responsibilities and obligations, thus making the relationship more clear and less likely to deteriorate. If each party is aware of their agreed roles, the chance of a dispute is minimal because the mutual expectations are clear from the beginning.


In the event that a dispute is unavoidable, the contract will prove very useful in mediation or litigation. A contract will save time that would otherwise be spent proving the existence of a formal Agreement and in turn, will therefore, save many thousands in legal fees. Furthermore, a contract coupled with a procedures manual will assist in the event of any abuses of legal procedure, including wrongful allegations of breach of trust, fraud or embezzlement.


A contract should not offend either party, and is the most productive and intelligent way to ensure that your business will flourish. In addition to a contract, we recommend a procedures manual that outlines the functions of the business, procedures and the roles and responsibilities of the business owners and their staff. With this in place, your business will likely experience the success that you crave. Effective planning is key to business and personal success.




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