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A Finder's Fee Agreement spells out how someone gets paid for connecting businesses to valuable opportunities in Saudi Arabia. When you help match a company with potential clients, investors, or business partners, this contract ensures you'll receive an agreed-upon reward for making that introduction successful.

Under Saudi commercial law, these agreements must clearly state the fee structure, payment timing, and scope of the finder's role. The fee typically ranges from 2-5% of the deal value, though rates can vary by industry. Companies often use these contracts in real estate, investment banking, and business development to incentivize network-building while staying compliant with Shariah principles.

Use a Finder's Fee Agreement when bringing valuable business connections together in Saudi Arabia, especially for high-stakes introductions that could lead to significant deals. For example, when connecting potential investors with real estate opportunities, introducing merger candidates to companies, or helping businesses find strategic partners, this agreement protects your right to compensation.

The agreement becomes essential before making any formal introductions or sharing confidential information. Having it in place early prevents disputes about who deserves credit for the connection and how much they'll be paid. It's particularly important in regulated sectors like financial services, where Shariah compliance and Capital Market Authority rules govern referral arrangements.

• Fixed Fee Agreements: Specify a set payment amount for successful introductions, common in real estate and straightforward business matchmaking
• Percentage-Based Agreements: Calculate fees as a portion of the final deal value, typically used for investment introductions and large transactions
• Success-Fee Only: Payment occurs only when deals close successfully, popular in mergers and acquisitions
• Hybrid Agreements: Combine upfront retainer fees with success-based compensation, often used for complex, long-term arrangements
• Industry-Specific Agreements: Tailored to meet Shariah compliance and sector regulations, especially in banking and financial services

• Business Intermediaries: Professional networkers, consultants, and brokers who connect parties for business opportunities and earn fees for successful introductions
• Corporate Executives: CEOs and business development managers who authorize finder's fee arrangements and set compensation terms
• Legal Counsel: In-house or external lawyers who draft and review agreements to ensure Shariah compliance and protect all parties' interests
• Investment Firms: Private equity groups and venture capitalists who use these agreements to reward deal sourcing
• Real Estate Professionals: Agents and property consultants who facilitate high-value property transactions and developments

• Core Deal Details: Document the exact nature of introductions, target industries, and expected outcomes
• Fee Structure: Define payment terms, calculation methods, and timing of compensation clearly in line with Shariah principles
• Party Information: Gather complete legal names, business registration numbers, and authorized signatory details
• Scope Definition: Outline specific services, territories covered, and duration of the finder's rights
• Compliance Check: Verify alignment with Saudi commercial law and industry-specific regulations
• Documentation: Prepare proof of introductions, communication records, and success criteria metrics

• Party Details: Full legal names, business registration numbers, and contact information of all involved parties
• Service Description: Clear outline of introduction services, target opportunities, and success criteria
• Compensation Terms: Detailed fee structure, payment timing, and conditions that trigger payment obligations
• Shariah Compliance: Explicit statements ensuring the agreement aligns with Islamic financial principles
• Confidentiality: Protection of sensitive business information and introduction details
• Duration & Territory: Clear timeframe and geographical scope of the finder's rights
• Dispute Resolution: Saudi law as governing authority and specified resolution mechanisms

A Finder's Fee Agreement differs significantly from a Agency Agreement in several key aspects under Saudi law. While both involve intermediary relationships, their scope, obligations, and legal implications vary considerably.

• Scope of Authority: Finder's Fee Agreements only cover introductions and matchmaking, while Agency Agreements grant broader powers to represent and act on behalf of the principal
• Legal Obligations: Agents have ongoing fiduciary duties and must actively represent their principal's interests; finders simply connect parties with no further involvement
• Payment Structure: Finder's fees are typically one-time payments for successful introductions, whereas agency relationships often involve regular commissions or retainer fees
• Regulatory Requirements: Agency Agreements face stricter regulatory oversight under Saudi commercial law and often require special licensing, while Finder's Fee Agreements have fewer formal requirements