Gold trading in Dubai continues to grow as one of the most dynamic and high-value segments in international commerce. With buyers and sellers engaging in multimillion-dollar transactions, a legally structured process supported by a neutral escrow agent is essential to ensure trust, clarity, and payment protection.
Dr. Alhammadi Law Firm provides secure escrow services for gold transactions by holding funds and releasing them only upon written instructions from the parties. Our role is limited to acting as a neutral legal escrow agent for the financial aspect of the transaction. This article outlines how a gold deal can be structured from the Letter of Intent (LOI) to the final delivery, with the support of legal escrow in the UAE.
Step 1: Letter of Intent (LOI)
The LOI is the first step in the gold transaction process. It sets out the basic terms of the proposed deal, including the quantity of gold, expected purity, delivery location, price, payment method, and proposed timeline.
Although the LOI is generally non-binding, it serves as the foundation for the transaction. Our legal team at Dr. Alhammadi Law Firm reviews LOIs to confirm that the proposed terms are clearly stated and suitable for transition into a formal agreement.
Step 2: Sale and Purchase Agreement (SPA)
Once the LOI is agreed, the parties proceed to sign a Sale and Purchase Agreement. This document legally binds the buyer and seller and outlines the transaction’s full details. A properly drafted SPA should define the delivery terms, payment structure, required documentation, escrow conditions, and legal remedies.
Dr. Alhammadi Law Firm prepares and reviews SPAs to ensure that the escrow clauses are clear and enforceable, with no ambiguity on the conditions required for fund release.
Step 3: Escrow Account Setup
Following the SPA, funds are deposited into the escrow account held by Dr. Alhammadi Law Firm, acting as a neutral and independent escrow agent.
Our role is limited to receiving, holding, and releasing funds in accordance with the conditions set out in the SPA. We do not take possession of or verify the physical gold. Before any funds are received, we perform full KYC and AML checks on all parties involved in the transaction.
Step 4: Delivery and Documentation
Once funds are secured in escrow, the seller arranges delivery of the gold to the agreed location, often within the UAE such as DMCC, a customs warehouse, or a bonded facility. The seller must then submit the required delivery documentation as defined in the SPA. This may include a packing list, customs entry records, certificate of origin, air waybill, and delivery receipt.
Step 5: Release of Funds
Once both parties confirm that the delivery has been completed and all required documents have been submitted, Dr. Alhammadi Law Firm will release the escrowed funds to the seller. This step is only taken upon receiving written instruction or confirmation in the manner defined under the SPA.
Buyers benefit by retaining control over the funds until their conditions are met. Sellers gain confidence knowing that funds are already secured and ready to be released as soon as the contractual obligations are fulfilled.
Example Gold Transaction Flow
- Buyer and seller agree on LOI and sign SPA
- Buyer deposits funds into escrow account with Dr. Alhammadi Law Firm
- Seller delivers gold and submits agreed documentation
- Both parties issue confirmation
- Funds are released to the seller
Why Choose Dr. Alhammadi Law Firm for Gold Escrow
We are a trusted legal provider of gold escrow services in the UAE. Our law firm is fully independent and acts with complete neutrality, handling only the financial aspect of the transaction. Our escrow accounts are available in AED, USD, and EUR, and we work in full compliance with UAE anti-money laundering laws.
Final Thoughts
A properly structured gold transaction backed by legal escrow protects all parties involved. From the initial LOI to final fund release, each step of the process should be documented, verified, and executed with legal oversight.
For buyers and sellers seeking to conduct high-value gold trades in Dubai or across the UAE, Dr. Alhammadi Law Firm offers secure and compliant escrow services that support smooth, trustworthy transactions without unnecessary risk.
Contact us today to learn more about how we can support your next gold transaction.
Disclaimer
Dr. Mohamed Alhammadi Advocates & Legal Consultants Office LLC provides escrow and/or paymaster services only where such services are ancillary and wholly incidental to the provision of legal services.
The information provided on this website is for general informational purposes only and should not be construed as legal, investment, financial, or trading advice. Dr. Alhammadi Law Firm does not offer recommendations regarding the purchase, sale, or holding of any cryptocurrency or other financial assets. Visitors are encouraged to conduct their own due diligence and seek independent professional advice before making any investment or financial decisions.
While Dr. Alhammadi Law Firm makes reasonable efforts to present accurate and up-to-date information, it does not guarantee the completeness, reliability, or accuracy of the content. All information is provided “as is,” without any express or implied warranties. Any reliance on the information available on this website is strictly at your own risk.
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