Questions & Answers
Is it common in the UAE to pay for an investment document to secure foreign transaction?
Hello,
I own a French startup company. I have been contacted by a foreign company that is willing to invest the sum of 1.5 Million Euros in a convertible loan basis for a 5 years term period.
There is an annual return on investment of 4% annually, and an option to acquire equity minority stakes of not more than 15% in the company at the expiration of the loan period solely at our discretion.
It seems pretty fair, but as the transaction is to be done in a Dubai Islamic bank, they said that I will be responsible for legalizing the loan agreement in the Dubai court under their supervision upon my arrival in Dubai.
There will be a charge equivalent of no more than 12,800 Euros that will be used as security documentation and swiftly wire the investment funds to our local account in France.
Is it a regular process for investment arranged with two international countries from a Dubai Islamic bank or is it a fraud?
Hello,
Please forward the details, with the documents to our e-mail.
Also, it depends upon the type of loan and the existence of the company, with the details.
It is better to do due diligence on the said matter both about the company and also about the loan facility, before availing of any loan or transferring any fund.
Please call or e-mail us.
Disclaimer- The above-referred view is not a legal opinion, these opinions cannot be challenged or presented before any court of law.
