Risk Disclosure Statement
Read before proceeding: This Risk Disclosure Statement outlines the material risks associated with investing through Globex Horizon Investment L.L.C. You must read and understand these risks before entering into any investment arrangement. If any part of this statement is unclear, seek independent professional advice before committing capital.
1. Who This Statement Applies To
This statement applies to all persons who are considering, or have entered into, a private investment arrangement with Globex Horizon Investment L.L.C. — including arrangements involving capital placement in operating businesses, business acquisition advisory, and business sale facilitation.
This statement should be read in conjunction with the Investment Disclaimer, the relevant signed investment agreement, and any other documentation provided by Globex Horizon.
2. General Investment Risk
All investments involve risk. The value of a capital investment and the income derived from it may go down as well as up. You may receive back less than you invest. In extreme circumstances, you may lose your entire invested capital.
Globex Horizon does not provide any guarantee of investment returns beyond the contractual terms expressly stated in a signed investment agreement. Even where contractual return commitments exist, they are contingent on the continued successful operation of the underlying businesses and the financial capacity of the Company to honour those commitments.
3. Specific Risk Factors
The following risk categories are specifically relevant to investment arrangements with Globex Horizon:
Business Performance Risk
Returns are linked to the operating performance of real businesses. Revenues, margins, and profits can decline due to competition, changing consumer preferences, staff turnover, or other operational factors outside Globex Horizon’s control. A decline in business performance may reduce or eliminate the Company’s ability to pay returns as projected.
Capital Loss Risk
While Globex Horizon structures investment agreements to include principal protection provisions and security cheques, these mechanisms are contractual obligations — not absolute guarantees. In the event of severe business failure or insolvency, some or all of your invested capital may not be recoverable.
Liquidity Risk
Your investment is not a publicly traded instrument and cannot be sold on a secondary market. While exit provisions are included in investment agreements (typically 30–45 days or 1 month’s written notice), early exit is subject to specific contractual terms and the Company’s operational capacity at the time. Liquidity cannot be guaranteed in all circumstances.
Concentration Risk
Although Globex Horizon operates across multiple business sectors, a significant portion of the current investment offering is linked to the Elaris Luxury Salons chain. Investors whose capital is placed in Elaris-linked arrangements are exposed to the specific risks of the UAE luxury beauty sector, including regulatory changes, lease renewals, DHA licensing, and consumer demand shifts.
Counterparty Risk
Your investment is a bilateral private arrangement with Globex Horizon Investment L.L.C. The ability of the Company to fulfil its contractual obligations depends on its continued financial health and the performance of its underlying businesses. There is no third-party guarantee, insurance scheme, or government-backed investor protection fund covering this type of investment.
Regulatory and Legal Risk
Changes in UAE commercial law, licensing requirements, tax regulations, or the regulatory treatment of private business investment arrangements could affect the structure, terms, or enforceability of your investment agreement. Globex Horizon monitors regulatory developments but cannot guarantee that future changes will not adversely affect investors.
Currency Risk
Investment arrangements are denominated in UAE Dirhams (AED). The AED has been pegged to the US Dollar since 1997. However, investors whose base currency is not AED or USD are exposed to fluctuations in the exchange rate between their home currency and AED. Returns converted into other currencies may be materially higher or lower than the AED figures quoted.
Expansion Risk
Projected returns associated with certain arrangements are based in part on the successful expansion of associated businesses (such as Elaris from 4 to 19 branches by 2029). Expansion may be delayed, scaled back, or fail to achieve projected performance for reasons including site availability, fit-out costs, licensing delays, staffing, and market conditions.
Key Person Risk
Globex Horizon’s operations are closely associated with its founder, Pezhman Ebad. The loss of key personnel could adversely affect the management and performance of the Company’s businesses and, consequently, the ability of the Company to meet its investor obligations.
Force Majeure Risk
Events beyond the Company’s reasonable control — including pandemics, natural disasters, war, civil unrest, government-mandated closures, and extreme market disruptions — may adversely affect business operations and the Company’s ability to pay returns on schedule.
4. Contractual Protections and Their Limitations
Security Cheque
A security cheque covering the invested capital is issued to the investor at signing. A cheque issued by a UAE-registered company has legal standing under UAE commercial law and can be enforced through the courts. However, enforcement is subject to legal process and is not instantaneous. The cheque provides recourse — it does not eliminate risk.
Post-Dated Cheques
Post-dated cheques (PDCs) covering each scheduled monthly payment are issued upfront. PDCs are not a guarantee of funds being available in the issuing account on the payment date.
UAE Commercial Law Contract
Investment agreements are governed by UAE Federal Commercial Law with Dubai Courts jurisdiction. Court-registered documents carry legal weight but enforcement through litigation involves time, cost, and uncertainty. Investors are encouraged to seek independent legal advice before signing.
Defined Exit Provisions
Investment agreements include defined exit pathways. These are contractual obligations — the Company will use all commercially reasonable efforts to honour them. However, exit is not a guaranteed liquid right and may be affected by the Company’s financial position at the time of exit.
5. Suitability
Private business investment arrangements of this nature are not suitable for all investors. You should consider investing through Globex Horizon only if:
- You fully understand the risks described in this statement
- You can afford to lose some or all of your invested capital without materially affecting your financial position
- You do not require immediate or guaranteed liquidity from the invested funds
- You have sought and considered independent financial and legal advice
- You are not investing funds that are borrowed or otherwise encumbered
6. Acknowledgement
By proceeding with any investment enquiry or arrangement with Globex Horizon Investment L.L.C., you confirm that you have read and understood this Risk Disclosure Statement, that you accept the risks described herein, and that you have had the opportunity to seek independent advice.
Globex Horizon Investment L.L.C.
Office 511, Fairmont Hotel, Sheikh Zayed Road, Dubai, UAE
Commercial Licence No. 523059 · Tax Registration No. 101001557712
Email: invest@globexhorizon.com
WhatsApp: +971 56 715 5554