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Professional services agreement ยท UAE Mainland

UAE Mainland Professional Services Agreement

A balanced, standalone agreement for a Provider to deliver defined services or deliverables to a Customer for a fee under UAE federal law (mainland), drafted for the Civil Transactions Law issued by Federal Decree-Law No. 25 of 2025 and the Personal Data Protection Law, with the courts of the chosen Emirate or DIAC arbitration.

Drafted with Mike. Adapted from Bonterms Professional Services Agreement v1.2, Common Paper Professional Services Agreement Standard Terms. Reviewed 24 October 2026.

What it is

A professional services agreement sets the terms on which a Provider supplies professional, consulting, technical or other business services to a Customer. This version is written for the UAE mainland and is governed by UAE federal law as applied in a chosen emirate, with that emirate's courts. Scope, fees, timetable and deliverables are set out in the key terms or an agreed statement of work.

When to use it

Use it for one-off or ongoing business-to-business services supplied to a customer in the UAE mainland. It is not meant for employment, secondment, labour supply or visa sponsorship, or for construction, real estate, regulated financial, legal, audit, medical or telecoms services that need sector terms or licences. Consumer services, agency or distribution, and software or IP licensing are also outside it. Deals needing international arbitration or DIFC or ADGM courts need the terms adapted.

Why use it

Its clauses deal with performance standards, customer dependencies, written changes, optional acceptance of deliverables, invoicing, expenses, VAT treatment and withholding, and suspension for non-payment after notice. Deliverables created for the Customer can be assigned on payment, with the Provider keeping its background materials, or kept by the Provider and licensed. Optional terms cover customer materials and data protection, including processor duties and breach notification. Liability exclusions and a cap, independent contractor status and the exclusive jurisdiction of the chosen emirate's courts are included.

What it covers

  • A firm delivering a defined project, review, event or build, services and any deliverables, to a business Customer in the UAE mainland for a fee, as a single standalone contract.
  • Customer responsibilities with relief for Customer delay, written change control, optional acceptance testing, simple late-payment interest and VAT.
  • Ownership of deliverables (assignment on payment or on creation, or Provider-owned with licence), background IP, third-party materials, warranties with a re-performance remedy and an IP indemnity.
  • Confidentiality, processor terms under Federal Decree-Law No. 45 of 2021, insurance, a liability cap that never limits fraud, gross negligence or wilful misconduct, anti-bribery.
  • Termination on notice without a court order where the law permits; English-language precedence; courts of the chosen Emirate or DIAC arbitration.

What it doesn't cover

  • A framework for several projects under separate statements of work (use the master services agreement), advice paid mainly by time (use the consultancy agreement) or an individual freelancer (use the independent contractor agreement).
  • Deals governed by DIFC or ADGM law (use the DIFC or ADGM version).
  • Construction and building works (decennial liability and the construction muqawala rules), commercial agency or distribution, regulated financial services, consumer contracts and government procurement.
  • High-volume or high-risk personal data processing that needs a full data processing agreement.
MIKE'S TEMPLATES

UAE Mainland Professional Services Agreement

Parties

This agreement is dated the date on which it is signed by the last of the parties.

This agreement is made between [Customer legal name, licence number and address] (the "Customer") and [Provider legal name, licence number and address] (the "Provider").

Key Terms

"Services" means [Services (scope, any dates and what the Customer must provide)].

"Deliverables" means [Deliverables].

"Commencement Date" means [Commencement Date].

"Term" means the period from the Commencement Date until the Services are completed.

"Fees" means [Fees].

"Payment Period" means 30 days after receipt of a valid tax invoice.

"Expense Policy" means reasonable, documented out-of-pocket expenses approved in writing by the Customer in advance.

"Acceptance Period" means 10 business days after delivery.

"Liability Cap" means the total Fees paid or payable under this agreement in the 12 months before the event giving rise to the claim.

Services

From the Commencement Date, the Provider must provide the Services and any Deliverables with reasonable skill and care, using suitably qualified and experienced personnel, in accordance with this agreement and applicable law. While on the Customer's premises or using its systems, the Provider must follow the Customer's reasonable site, security and IT rules notified to it in writing in advance.

The Provider must use reasonable efforts to meet any dates stated in the Services description. A date binds the Provider only if this agreement says it is binding. The Provider must tell the Customer promptly if it expects to miss a date, giving the reason and a revised date.

Customer Responsibilities

The Customer must provide on time the information, decisions, materials, and access to its premises, systems and personnel that the Services description lists or that the Provider reasonably requests to perform the Services. If a failure by the Customer to do so delays or prevents performance and the Provider promptly notifies the Customer, the Provider is not liable for the delay or failure to the extent it is caused by the Customer, the affected dates are extended accordingly, and the Provider may recover its reasonable additional costs through the Changes clause.

Changes

Either party may request a change to the Services, Deliverables, dates or Fees. The Provider must promptly give a written estimate of the change's effect on the dates, Fees and other terms. A change binds the parties only when both sign a written change record. Until then, the Provider must continue to perform the Services unchanged. Neither party may unreasonably refuse a change needed to comply with a change in applicable law.

Acceptance

The Customer must review each Deliverable within the Acceptance Period and either accept it or notify the Provider in writing of each respect in which it does not materially conform to the Services description. The Provider must correct each notified non-conformity at its own cost and resubmit the Deliverable, and this clause then applies again. A Deliverable is accepted when the Customer accepts it in writing, when the Acceptance Period ends without a valid notice, or when the Customer uses it in its business other than for testing.

If a resubmitted Deliverable still does not materially conform to the Services description, the Customer may by written notice require a further correction, accept the Deliverable with a fair reduction in the Fees, or terminate this agreement for that Deliverable and the Services that depend on it and recover the Fees paid for them.

Fees and Payment

In return for the Services, the Customer must pay the Fees. Unless the Fees description sets a different schedule, the Provider may invoice monthly in arrears for Services performed. The Customer must pay each valid invoice within the Payment Period.

The Customer has no obligation to pay Fees or expenses invoiced more than 120 days after the Provider was first entitled under this agreement to invoice them.

If the Customer disputes an invoice in good faith, it must notify the Provider with its reasons within the Payment Period and pay the undisputed part on time. The parties must try to resolve the dispute promptly. An amount agreed or determined to be payable is due within 10 business days after that agreement or determination.

The Customer must reimburse the Provider's expenses only if they are incurred in accordance with the Expense Policy and supported by receipts or other reasonable evidence.

The Fees and any expenses are exclusive of VAT, which the Customer must pay at the applicable rate on receipt of a valid tax invoice. Each party is responsible for taxes on its own income and profits.

If the Customer does not pay an undisputed amount when due, the Provider may charge simple interest on it at 5% a year from the due date until payment, to the extent the law permits. If the amount remains unpaid 10 business days after the Provider gives written notice of the non-payment, the Provider may also suspend the Services until it is paid.

Intellectual Property

Each party keeps the intellectual property rights it owns at the date of this agreement or creates independently of it (its "Background IP"). The Provider also keeps its general skills, know-how, methods and tools, and may use them for other clients if it does not use the Customer's Confidential Information.

With effect from payment of the Fees for a Deliverable, the Provider assigns to the Customer all intellectual property rights in that Deliverable, excluding the Provider's Background IP and third-party materials. The Provider must obtain from its personnel and subcontractors the assignments and written waivers of moral rights or, where the law does not allow a waiver, irrevocable consents not to assert them needed to give effect to this clause, and must sign any further document the Customer reasonably requests to record the assignment. Any assignment under this clause covers the economic rights of reproduction (including downloading and electronic storage), translation, adaptation and modification, distribution, rental, lending, broadcasting, performance and communication to the public (including making available through computer and communication networks) in each Deliverable, for the purposes of this agreement and the Customer's business and, beyond that, every purpose, including use, adaptation and commercial exploitation in any medium, in the whole world and for the full term of protection of each right, as Article 9 of Federal Decree-Law No. 38 of 2021 requires a transfer to state.

The Provider grants the Customer a non-exclusive, perpetual, irrevocable, worldwide, royalty-free licence to use, copy and modify any of the Provider's Background IP incorporated in a Deliverable, as far as needed to use that Deliverable for the Customer's business. The Customer may sub-license these rights only to its group companies and to contractors working for it.

The Provider must not incorporate third-party or open-source materials in a Deliverable unless it identifies them to the Customer in writing in advance and the Customer may use them, under licence terms it has approved, as this agreement contemplates.

The Provider must list each item of open-source material incorporated in a Deliverable, including complete related licence and copyright attribution information. Unless the Services description states otherwise for a particular Deliverable, the Provider must not incorporate open-source material under a licence that requires the Customer to make source code for that Deliverable, a modification or derivative work, or code combined with or linked to it available under that same licence. The Customer's use of open-source material is subject to its applicable open-source licence to the extent that licence requires.

The Customer keeps all rights in the materials it provides for the Services ("Customer Materials") and grants the Provider a non-exclusive, royalty-free licence during the Term to use them only to perform the Services.

The Customer may, but is not required to, give the Provider feedback, in which case the Customer gives feedback "AS IS". The Provider may use all feedback freely without restriction or obligation. In addition, the Provider may collect and analyse usage data and may freely use it to maintain, improve and enhance the Provider's products and services without restriction or obligation. However, the Provider may share usage data with others only if it is aggregated and does not identify the Customer.

Warranties

Each party warrants that it has full power and authority to enter into and perform this agreement.

The Provider warrants that (a) each Deliverable will, on delivery, conform in all material respects to the Services description; and (b) the receipt and use of the Services and Deliverables in accordance with this agreement will not infringe any third party's intellectual property rights, except to the extent caused by Customer Materials.

The Provider warrants that the Services and all Deliverables will be free of viruses, malicious code and similar harmful materials, and of features that enable disabling, timing out, remote monitoring or collection of data that are not expressly disclosed in the Services description.

If the Customer notifies the Provider within 60 days after a Service is performed or a Deliverable is delivered that it does not meet the Provider's warranty that Deliverables conform to the Services description or the standard in the Services clause, the Provider must re-perform the Service or correct the Deliverable at its own cost within a reasonable time. If it does not do so, the Customer may terminate this agreement for the affected Services and recover the Fees paid for them. These are the Customer's only remedies for that failure, except for any remedies the Acceptance clause gives for a Deliverable that fails acceptance, but they do not limit its remedies for any other breach.

Indemnities

The Provider must indemnify the Customer against all losses, damages, costs (including reasonable legal fees) and settlement amounts arising from a third-party claim that the receipt or use of the Services or Deliverables in accordance with this agreement infringes that third party's intellectual property rights (an "IP Claim"). This does not apply to the extent an IP Claim arises from Customer Materials, a modification of a Deliverable not made by the Provider, or use of a Deliverable with items not supplied or approved by the Provider.

If an IP Claim is made or the Provider reasonably believes one is likely, the Provider may at its own cost obtain the right for the Customer to keep using the affected item, or modify or replace it so that it no longer infringes without materially reducing its functionality. If neither is reasonably possible, either party may terminate this agreement for the affected item and the Provider must refund the Fees paid for it.

The Customer must indemnify the Provider against all losses, damages, costs (including reasonable legal fees) and settlement amounts arising from a third-party claim that the Provider's use of Customer Materials in accordance with this agreement infringes that third party's intellectual property rights.

A party claiming under an indemnity must promptly notify the other party of the claim, let it control the defence and settlement at its own cost, give reasonable help at its cost, and make no admission without its consent. The indemnifying party must not settle a claim in a way that requires an admission by, or imposes an obligation on, the indemnified party without that party's consent, which must not be unreasonably withheld.

Confidentiality

Each party must keep confidential all information of a confidential nature that the other party discloses to it in connection with this agreement ("Confidential Information"), use it only to perform its obligations or exercise its rights under this agreement, and protect it with at least reasonable care. It may disclose Confidential Information to its and its group companies' employees, officers, professional advisers, insurers and subcontractors who need to know it and are bound by equivalent duties of confidence, and it remains responsible for their compliance.

These obligations do not apply to information that is or becomes public other than through a breach of this agreement, that the recipient lawfully had or receives from a third party without a duty of confidence, or that it develops independently. The recipient may disclose Confidential Information if the law, a court or a regulator requires it, giving the other party as much notice as the law permits. These obligations continue for 3 years after termination or expiry after this agreement ends and, for trade secrets, for as long as they remain trade secrets.

A recipient may retain the discloser's Confidential Information, other than personal data that the Data Protection clause requires to be deleted or returned, in accordance with its standard backup or record-retention policies maintained in the ordinary course of business or as applicable law requires, in which case the Data Protection and Confidentiality clauses continue to apply to that retained Confidential Information.

Neither party may announce this agreement publicly or use the other party's name or logo in publicity without the other party's prior written consent, except as the law requires.

Data Protection

Each party must comply with Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data and any other data protection law that applies to it. Where the Provider processes personal data on the Customer's behalf, the Provider must: (a) process it only on the Customer's documented instructions, unless the law requires otherwise; (b) ensure that its authorised personnel are bound by confidentiality; (c) take appropriate technical and organisational security measures; (d) engage a sub-processor only with the Customer's prior written authorisation and on equivalent written terms; (e) not transfer the personal data outside the UAE except as the law permits and the Customer approves; (f) assist the Customer with data-subject requests and its other compliance obligations; (g) notify the Customer without undue delay after becoming aware of a personal data breach; and (h) delete or return the personal data at the end of the Services unless the law requires storage.

The Provider may access the Customer's systems or premises only to the extent authorised by the Customer in writing, only as necessary to perform the Services, and in strict accordance with the Customer's applicable policies and instructions. The Provider warrants that it has adequate personnel, security and operational measures to comply with these obligations and not impair the security, integrity or availability of Customer Materials, systems or premises. On request, the Provider must promptly provide documentation, third-party audit reports or other information reasonably necessary for the Customer to verify its compliance.

Insurance

The Provider must maintain with reputable insurers professional indemnity insurance of at least AED 3,500,000 for each claim, and any other insurance the law requires for the Services, during the Term and for 3 years after it ends, and must provide evidence of that insurance on request.

Liability

Nothing in this agreement limits or excludes liability for fraud, gross negligence or wilful misconduct, for death or personal injury, or for any other liability that cannot be limited or excluded under UAE law.

Subject to the liabilities that this agreement does not limit, neither party is liable to the other for loss of profit, revenue, business, anticipated savings or goodwill, or for any indirect or consequential loss. This does not affect the Customer's obligation to pay the Fees.

Subject to the liabilities that this agreement does not limit, each party's total liability arising out of or in connection with this agreement, whether in contract, tort (including negligence) or otherwise, is limited to the Liability Cap. Liability for breach of the Confidentiality clause or of any data protection obligation, or under the Provider's indemnity for IP Claims, is instead limited to twice the Liability Cap in total. These limits do not apply to the Customer's obligation to pay the Fees.

Non-solicitation

During the Term and for 6 months after it ends, neither party may, without the other party's prior written consent, solicit for employment or engagement any employee of the other party who was materially involved in the Services. General recruitment advertising not aimed at those employees, and hiring a person who responds to it, is not a breach.

Compliance

Each party must comply with all anti-bribery and anti-corruption laws that apply to it and must not offer, give, request or accept any bribe or other improper advantage in connection with this agreement. The Provider must maintain policies and procedures reasonably designed to ensure that its personnel and subcontractors do the same.

Term and Termination

This agreement starts on the Commencement Date and continues for the Term, unless it is terminated earlier under this agreement.

The Customer's group companies may enter into their own Services descriptions with the Provider as mutually agreed. Each such Services description creates a separate agreement between that group company and the Provider incorporating this agreement, with that group company treated as the Customer. Neither the Customer nor any group company has rights under another's separate agreement with the Provider, and a breach or termination of one separate agreement affects only that agreement.

Either party may terminate this agreement immediately by written notice if the other party commits a material breach of it that cannot be remedied or, if it can be remedied, is not remedied within 30 days after written notice requiring it to be remedied.

Either party may terminate this agreement immediately by written notice if the other party is declared bankrupt, enters into a composition or arrangement with its creditors, is placed in liquidation other than for a solvent reorganisation, or ceases to carry on business, unless the law prevents termination on that ground.

Either party may terminate this agreement for convenience by giving the other at least 30 days written notice. If the Customer ends this agreement under this clause before the work is complete, the Provider keeps any right it has under Article 836 of the Civil Transactions Law (Federal Decree-Law No. 25 of 2025) to compensation for the expenses it has incurred, the work it has done and the profit it would have made by completing the work, although a court may reduce the lost-profit part where fair, in particular by what the Provider saved, or earned by using its time elsewhere, because of the termination; amounts paid under this agreement because of the termination count towards that compensation.

The parties agree that termination under this agreement takes effect on the notice given, without the need for a court order or judgment, to the extent the law permits.

On termination or expiry: (a) the Customer must pay the Fees for Services performed and expenses properly incurred up to the termination date and, if it terminates for convenience, the Provider's reasonable costs committed before the notice that cannot be cancelled; (b) the Provider must deliver all Deliverables, including work in progress, paid for or payable under paragraph (a); (c) each party must return or destroy the other's Confidential Information on request, except as the law requires it to keep or as any clause on retained Confidential Information permits; and (d) accrued rights and remedies, and the clauses intended to continue, continue in force, including this clause, the Fees and Payment clauses for amounts accrued before termination or expiry, and the Intellectual Property, Warranties, Indemnities, Confidentiality, Data Protection, Insurance, Liability, Non-solicitation, Notices, Governing Law and Disputes, and General clauses, each to the extent included in this agreement.

Force Majeure

Neither party is liable for delay or failure to perform caused by an event beyond its reasonable control that it could not reasonably have avoided or mitigated, other than its own lack of funds or industrial action by its own workforce, if it promptly notifies the other party and uses reasonable efforts to resume performance. This clause does not excuse payment of amounts due. If the event prevents performance of all or a material part of the Services for more than 60 days, either party may terminate this agreement by written notice.

General

The Provider is an independent contractor. Nothing in this agreement creates a partnership, joint venture, agency or employment relationship between the parties, and neither party may bind the other. The Provider is responsible for the pay, tax and social security of its own personnel.

The Provider may subcontract part of the Services only with the Customer's prior written consent, which must not be unreasonably withheld or delayed. The Provider remains responsible for its subcontractors' acts and omissions as if they were its own.

Neither party may assign or transfer its rights or obligations under this agreement without the other party's prior written consent, which must not be unreasonably withheld or delayed. Either party may, however, assign this agreement by written notice to a successor to all or substantially all of its business to which this agreement relates.

Notices

A notice under this agreement must be in writing and delivered by hand, by reputable courier or by email to the Customer at [Customer notice address and email] or to the Provider at [Provider notice address and email], or to a replacement address notified in writing. A notice is received on delivery by hand or courier or, for email, when sent if sent before 5.00 pm on a business day at the recipient's address and otherwise at 9.00 am on the next business day, unless a delivery-failure message is received.

General

This agreement is the entire agreement between the parties about its subject matter and supersedes all earlier discussions and arrangements. Each party acknowledges that it has not relied on any statement not set out in this agreement, but this does not limit liability for fraud, or for any pre-contractual duty that the law does not allow the parties to exclude. Terms in any purchase order or other business form do not apply.

If there is a conflict, the following prevail over the other clauses of this agreement, in this order: the Key Terms (other than the Services description), any additional written terms, and then any attachments. A Services description may not modify any other part of this agreement unless it specifically identifies the provision it supersedes.

Section titles are for convenience and reference only. All uses of "including" and similar phrases are non-exhaustive and without limitation.

A variation is effective only if it is in writing and signed by both parties. A failure or delay in exercising a right is not a waiver of it. If any provision is invalid or unenforceable, it applies with the minimum modification needed to make it valid, or is otherwise deleted, and the rest of this agreement is unaffected.

This agreement is made in English. If it is translated into Arabic or any other language, the English text prevails between the parties to the extent the law permits.

This agreement may be signed in counterparts and by electronic signature. Each counterpart is an original, and together they form one agreement.

Governing Law and Disputes

This agreement and any dispute arising out of or in connection with it are governed by the federal laws of the United Arab Emirates and, where applicable, the laws of the Emirate of Dubai. The courts of the Emirate of Dubai (which, for clarity, do not include the courts of the Dubai International Financial Centre or the Abu Dhabi Global Market) have exclusive jurisdiction to settle any such dispute.

A breach of the Confidentiality clause or violation of a party's intellectual property rights may cause irreparable harm for which monetary damages cannot adequately compensate. Despite the Governing Law and Disputes clause, on an actual or threatened breach or violation, the non-breaching party may seek urgent interim or precautionary measures, including an order to stop the breach, in any court of competent jurisdiction, without limiting its other rights or remedies.

Sources and credits

Includes wording adapted from the Common Paper Professional Services Agreement Standard Terms (https://github.com/CommonPaper/PSA), licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/); Bonterms Professional Services Agreement v1.2 (https://github.com/Bonterms/Professional-Services-Agreement), licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Modified for Mike's Templates.

Free to use. Not legal advice. Get it reviewed by a lawyer.