Letters of Guarantee UAE — Bid, Performance & Advance Bonds
Win UAE tenders with bank guarantees from leading banks — bid bonds, performance bonds, advance-payment and retention guarantees, issued against your trade limit or a cash margin.
Top Letter of Guarantee offers right now in UAE
Compare the latest business loan offers from leading UAE banks, tailored to your business.
A Letter of Guarantee (LG), or bank guarantee, is an irrevocable bank undertaking to pay a beneficiary a stated sum if your company fails to meet a contractual obligation — the instrument that lets UAE businesses bid for and deliver contracts they could not otherwise access. The common types are a bid bond (lodged to enter a tender, typically 1–5% of the contract value), a performance bond (on award, often 5–10%), an advance-payment guarantee (to receive an upfront payment), and a retention guarantee (to release withheld funds early). UAE government bodies and main contractors require these as a precondition to award. Banks issue LGs against your approved trade limit or a cash margin, charging a commission per quarter on the guaranteed amount. Eligibility needs an active trade licence, the underlying contract or tender document, and a clean AECB record. FinanceMarket.ae matches you to the banks offering the lowest margins and fastest LG turnaround for your contract type.
- Bid (tender) bonds for government & corporate tenders
- Performance guarantees on contract award
- Advance-payment & retention guarantees
- Issued against trade limit or cash margin
Documents Required to Apply for a Business Loan in Dubai, the UAE
Pick your profile below — the checklist differs by applicant type.
- Valid Trade Licence (Mainland / DED)
- Memorandum of Association (MOA) & Share Certificates
- Chamber of Commerce registration certificate
- Office tenancy contract / Ejari
- Company profile and website
- 6–12 months company bank statements
- Audited financial statements for the last 2 years
- VAT certificate and VAT returns for the last 4 quarters
- Sample invoices and purchase orders (POs)
- Emirates ID & passport copies of all owners / partners
- UAE residence visa copies of owners / partners
- AECB credit report
- Post-dated cheques / collateral where applicable
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Frequently Asked Questions
Answers to the most common questions about business finance in the UAE.
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