Quotation Template (UAE)

A Quotation Template in the UAE is a pre-contractual commercial document issued by a supplier to a prospective buyer that sets out the price, scope, and terms on which the supplier is willing to deliver goods or services, and its legal status is governed by the UAE Civil Code (Federal Law No. 5 of 1985) and the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022). The quotation records the supplier's legal name and registered address, the client's details, a sequential quotation reference, the date of issue, a defined validity period, a clear description of the goods or services offered, the pricing in UAE dirhams with applicable VAT under the VAT Law (Federal Decree-Law No. 8 of 2017), the proposed payment terms, and an acceptance block enabling the client to convert the quotation into a binding contract by signature.

In UAE commercial practice, the quotation is the document that initiates most B2B transactions. From construction subcontracts and MEP works to IT procurement and professional services, businesses in Dubai, Abu Dhabi, Sharjah, and across the emirates require a signed quotation or a purchase order referencing it before committing resources, allocating budget, or ordering materials. The Dubai Courts and the Abu Dhabi Judicial Department treat a signed quotation as strong evidence of the agreed commercial terms, and a well-structured quotation can prevent disputes about price, scope, delivery, and payment that frequently arise when agreement is reached informally.

Under Articles 138 to 152 of the UAE Civil Code, a quotation is an offer by the supplier to the client. Once the client accepts the quotation — whether by signature, by written confirmation, or by conduct such as paying a deposit or instructing the supplier to proceed — a contract is formed on the terms of the quotation. The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022), which replaced the earlier 1993 law, updated the rules on commercial contracts and introduced clearer provisions on the binding nature of commercial offers and the consequences of non-performance. The Ministry of Economy promotes transparent commercial documentation as part of the UAE's policy to make it one of the world's easiest places to do business.

Where the supplier is registered for Value Added Tax with the Federal Tax Authority, the quotation should show the net price, the VAT at the applicable rate (standard 5% for most supplies under the VAT Law (Federal Decree-Law No. 8 of 2017), zero-rated for qualifying exports, or exempt for certain categories), and the total including VAT. Disclosing the VAT on the quotation avoids the misunderstanding that arises when a client budgets based on the net figure and then receives a tax invoice 5% higher. The supplier's Tax Registration Number should appear on the quotation as it does on the eventual invoice.

The Quotation Template on forms-legal.com captures the full structure needed for a UAE commercial quotation: supplier identity and TRN, client details, a sequential quotation number, date and validity period, a detailed scope of supply field, pricing with VAT breakout, payment terms, delivery timeline, any special conditions, and a dual-signature acceptance block for the supplier and the client. The template is designed for businesses operating in the UAE mainland under the Commercial Companies Law (Federal Decree-Law No. 32 of 2021) and for free zone entities in centres such as the Dubai International Financial Centre and the Abu Dhabi Global Market.

A Quotation Template is needed in the UAE at the start of every significant commercial transaction where a buyer requires a formal price before committing to purchase goods or services, because the quotation is the document that defines the commercial terms before a contract is formed under the UAE Civil Code (Federal Law No. 5 of 1985) and the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022).

Construction and fit-out projects are the most common context. Contractors, subcontractors, and specialist tradespeople in Dubai and Abu Dhabi submit quotations for civil, MEP, and interior works before a subcontract agreement is signed. The developer or main contractor requires a written quotation referencing the scope of works, the contract price in AED, the VAT position, and the completion timeline before issuing a purchase order or a formal contract. Without a signed quotation, scope disputes and price disagreements are almost inevitable.

Professional services firms — legal advisers, accounting practices, management consultants, IT integrators, and engineering consultancies — issue quotations for project-based and retainer engagements. The client's procurement or finance department requires a quotation number and a clear fee schedule before approving a supplier on the vendor register and releasing a purchase order. For fee-regulated professions, the quotation also documents that the agreed fee is within any applicable cap.

Goods suppliers and trading companies use quotations as the first step in the procurement cycle. A prospective buyer requests quotations from multiple suppliers, compares them, and issues a purchase order to the preferred supplier. Under the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022), the purchase order references the quotation number to incorporate its terms, creating a clear contractual chain from price offer to delivery to invoice. For imports, the quotation also supports the buyer's internal approval process before committing to foreign-currency payments via the banking system regulated by the Central Bank of the UAE.

Government and semi-government procurement frequently requires formal quotations as part of a request-for-quotation or tender process. The relevant authority, whether a Dubai Government entity, an Abu Dhabi government agency, or a federal ministry, invites suppliers to submit quotations against a defined specification, and the award is made to the most commercially advantageous submission. The Ministry of Finance's procurement guidelines and the UAE Federal Procurement Law apply to federal entities and require compliant quotation formats.

Startups and SMEs in UAE free zones, including those in the Dubai International Financial Centre, the Abu Dhabi Global Market, and other free zones, need quotations when engaging service providers or suppliers, both to manage their own costs and to present to investors or lenders as evidence of planned expenditure. The DIFC Courts and ADGM Courts can enforce obligations arising from accepted quotations in the same way as formal contracts.

A UAE Quotation Template must include several key elements to be commercially effective and legally enforceable under the UAE Civil Code (Federal Law No. 5 of 1985) and the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022).

Supplier identification begins the document. The supplier's full legal name as it appears on the trade licence issued by the Department of Economic Development or the relevant free zone authority, the registered address, and, where VAT-registered, the Tax Registration Number issued by the Federal Tax Authority must all appear. Including contact details — phone and email — ensures the client can seek clarification promptly, which is important in the UAE's competitive commercial environment.

Client identification follows, recording the client's full name or company name, address, and the contact person handling the procurement. For government clients, the purchase order reference or enquiry reference should also be noted to support the matching process.

The quotation reference and validity block is critical. A unique sequential quotation number — for example QT-2026-045 — allows both parties to reference the document in correspondence, purchase orders, and contracts. The date of issue in DD/MM/YYYY format and the validity date tell the client the window within which acceptance creates a binding contract under the Civil Code. A 30-day validity is standard for most goods and services in the UAE; construction and complex services may warrant 60 days.

The scope of supply description is the heart of the quotation. A clear, specific description of the goods or services, including quantities, specifications, delivery location, and any exclusions, prevents scope disputes. The forms-legal.com Quotation Template provides a textarea field for this purpose, supporting as much detail as the transaction requires. Vague descriptions such as 'IT services' or 'construction works' are insufficient and leave the supplier exposed to broad interpretation by the client.

Pricing with VAT disclosure is essential. The net price in UAE dirhams, the applicable VAT rate under the VAT Law (Federal Decree-Law No. 8 of 2017), the VAT amount in dirhams, and the total price including VAT must be shown clearly. Where the supply is zero-rated or exempt, stating the rate confirms the VAT treatment and protects the supplier if the Federal Tax Authority later challenges the classification.

Payment terms and delivery timeline give the client the commercial context needed to approve the purchase. Standard UAE payment terms range from advance payment to net 30 or net 60 days from invoice. The delivery or completion timeline should be realistic and expressed in working days from confirmed order, since this becomes a contractual obligation once the quotation is accepted.

The acceptance block converts the quotation into a contract. A signature line for both the supplier and the client, with name, title, and date, provides unambiguous evidence of acceptance under the Civil Code. Including a statement that acceptance creates a binding agreement governed by the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) and the Civil Code removes any doubt about the legal effect.

Completing a UAE Quotation Template is a straightforward process that produces a professional, legally effective document when done carefully under the framework of the UAE Civil Code (Federal Law No. 5 of 1985) and the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022).

Begin with the supplier section. Enter the full legal name of the business as registered with the Department of Economic Development or the relevant free zone authority, the registered address, and the Tax Registration Number if the business is registered for Value Added Tax with the Federal Tax Authority. Add the phone and email address of the sales or accounts contact so the client can reach the right person quickly.

Move to the client section. Enter the client's full company name and address, and the name and title of the contact person handling the procurement. Where the client is a government entity or a large corporate with a vendor portal, noting the enquiry or request-for-quotation reference helps the client match the quotation to their internal process.

In the quotation details section, assign a unique sequential number — for example QT-2026-045 — and enter the date of issue in DD/MM/YYYY format. Set the validity date carefully: 30 days is appropriate for most standard goods and services, while more complex or price-sensitive projects warrant 14 to 21 days to limit exposure to cost changes.

In the goods or services section, write a precise description of the scope of supply. Include quantities, specifications, part numbers, delivery location, exclusions, and any assumptions. Then enter the net price in AED before VAT. Select the applicable VAT rate — standard 5% for most supplies, zero-rated for qualifying exports, or exempt — and calculate and enter the VAT amount and the total price including VAT.

In the terms section, select the proposed payment terms and enter the estimated delivery or completion timeline in working days from a confirmed order. Add any special conditions, such as exclusions, assumptions, escalation provisions, or warranty terms. Review the live preview to confirm all fields have populated correctly, then download the document as a PDF or Word file, sign the supplier block, and send it to the client. Request a countersigned copy as confirmation of acceptance, and retain a copy in your records.

Legal requirements for a UAE Quotation are set primarily by the UAE Civil Code (Federal Law No. 5 of 1985) and the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022), with additional requirements from the VAT Law (Federal Decree-Law No. 8 of 2017) where the supplier is VAT-registered.

Under the UAE Civil Code (Federal Law No. 5 of 1985), a quotation that is sufficiently definite as to its subject matter, price, and terms constitutes an offer that, once accepted, forms a binding contract. The Civil Code requires a contract to have a lawful subject matter, a determined or determinable price, and the genuine consent of both parties. A quotation that lacks a clear description, an identified price, or a validity period may be unenforceable, so these elements are legally essential, not merely good practice.

The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) applies to commercial transactions between traders and provides for late payment compensation and other commercial remedies. A quotation that is accepted by a trader creates a commercial obligation enforceable under this law, and the court may award compensation for loss caused by non-performance without requiring the claimant to prove fault.

Where the supplier is registered for VAT under the VAT Law (Federal Decree-Law No. 8 of 2017), the quotation should include the Tax Registration Number and show the VAT amount in dirhams, because a valid tax invoice must be issued within 14 days of the date of supply and the invoice details should align with the accepted quotation. A discrepancy between the quoted VAT and the invoiced VAT may cause the Federal Tax Authority to question the correct rate.

For regulated industries and government procurement, additional requirements may apply. UAE federal procurement laws require quotations submitted to government entities to comply with specified formats and to be accompanied by trade licence copies and other documents. The Ministry of Economy's supplier registration portal and the UAE Government Procurement Guidelines set out these requirements for federal tenders. Quotations for regulated sectors such as financial services (overseen by the Central Bank of the UAE and the Securities and Commodities Authority) must not include representations that would constitute unlicensed financial advice.

Common mistakes with UAE quotations often stem from treating the document as a mere courtesy rather than a legally binding offer under the UAE Civil Code (Federal Law No. 5 of 1985) and the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022).

The most frequent error is failing to state a validity period. Without a validity date, the quotation remains open for a reasonable time under the Civil Code, which may bind the supplier to prices that have become uneconomic due to material cost increases, currency fluctuations, or changes in subcontractor rates. Suppliers should always set a validity date and configure their systems to treat expired quotations as lapsed.

Including VAT on a quotation when the business is not registered with the Federal Tax Authority is a serious compliance error. A business that collects VAT without a Tax Registration Number commits an offence under the VAT Law (Federal Decree-Law No. 8 of 2017). Conversely, a registered supplier that omits VAT from the quotation and then invoices with VAT creates a price dispute with the client, who may refuse to pay the additional amount or claim the price was agreed exclusive of VAT.

Vague scope descriptions are among the most commercially damaging mistakes. A quotation that describes the supply as 'IT services' or 'fit-out works' without specifics invites the client to claim a broader scope than the supplier intended, leading to cost overruns and disputes before the Dubai Courts or the Abu Dhabi Judicial Department. The description should be specific enough that a court could determine what was agreed without additional evidence.

Omitting payment terms from the quotation leaves the payment date undefined, enabling the client to delay without a clear contractual deadline. UAE commercial practice expects payment terms to be stated, and the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) allows the supplier to claim compensation for late payment only if a due date has been established.

Finally, issuing a quotation without an acceptance mechanism — such as a signature block or a clear instruction to respond in writing — means there is no documentary evidence of when and on what terms the contract was formed, which weakens the supplier's position in any dispute.