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The Operating Management Agreement is a crucial document in the UAE business landscape, used when an owner wishes to delegate the operation and management of their business, property, or facility to a professional management company while retaining ownership. This arrangement is particularly common in the UAE's dynamic market, where specialized expertise and professional management are highly valued. The agreement must comply with UAE Federal Laws, including the Civil Code, Commercial Transactions Law, and relevant sector-specific regulations. It typically includes detailed provisions for operational control, performance standards, financial arrangements, staff management, and reporting requirements, while considering local business practices and cultural norms. The document is especially relevant in sectors such as hospitality, real estate, and facility management, where professional operators bring expertise and established systems to maximize asset performance.

1. Parties: Identification of the Owner and the Operator/Manager, including full legal names, addresses, and registration details

2. Background: Context of the agreement, description of the business/property being managed, and general purpose of the arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the operator and detailed scope of management services

5. Term and Renewal: Duration of the agreement, commencement date, and renewal provisions

6. Operator's Rights and Obligations: Comprehensive list of the operator's responsibilities, authority limits, and duties

7. Owner's Rights and Obligations: Owner's responsibilities, including provision of resources and information

8. Financial Terms: Management fees, payment terms, expenses, and financial reporting requirements

9. Operating Standards: Required performance standards, quality metrics, and compliance requirements

10. Staff and Employment: Provisions regarding employment, staffing requirements, and HR responsibilities

11. Reporting and Records: Requirements for operational and financial reporting, record-keeping obligations

12. Intellectual Property: Protection and usage rights of trademarks, systems, and other IP

13. Confidentiality: Obligations regarding confidential information and trade secrets

14. Liability and Indemnification: Allocation of risks, liability limitations, and indemnification provisions

15. Insurance: Required insurance coverage and related obligations

16. Termination: Grounds for termination, notice requirements, and consequences

17. Post-Termination: Obligations and procedures following termination

18. Governing Law and Dispute Resolution: Choice of UAE law and dispute resolution mechanisms

19. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment