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Engagement Agreement for Saudi Arabia

Engagement Agreement Template for Saudi Arabia

This document is a comprehensive Engagement Agreement governed by Saudi Arabian law, designed to establish and regulate the professional relationship between a service provider and a client. It incorporates essential elements of Saudi commercial law and Sharia principles, defining the scope of services, responsibilities, compensation, and operational parameters of the engagement. The agreement includes provisions for confidentiality, intellectual property rights, and dispute resolution mechanisms compliant with Saudi jurisdiction, while ensuring alignment with local business practices and regulatory requirements.

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What is a Engagement Agreement?

The Engagement Agreement serves as a fundamental legal instrument in Saudi Arabia for establishing professional service relationships between service providers and their clients. This document is essential when engaging external professionals, consultants, or service firms, providing a structured framework that complies with Saudi Arabian law and Sharia principles. It outlines crucial elements including service scope, deliverables, payment terms, confidentiality obligations, and performance standards. The agreement is particularly important in the Saudi business context as it addresses local regulatory requirements, commercial practices, and legal obligations while protecting both parties' interests. Key applications include consulting engagements, professional services, advisory roles, and project-based collaborations.

What sections should be included in a Engagement Agreement?

1. Parties: Identification of the parties entering into the agreement, including full legal names, addresses, and commercial registration details

2. Background: Context of the engagement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including deliverables and timelines

5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

6. Fees and Payment Terms: Compensation structure, payment schedule, and invoicing procedures

7. Obligations of Service Provider: Specific duties and responsibilities of the service provider

8. Client Obligations: Responsibilities and commitments of the client

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property: Ownership and rights to intellectual property created during the engagement

11. Liability and Indemnification: Limitations of liability and indemnification obligations

12. Force Majeure: Provisions for unforeseen circumstances preventing performance

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution procedures

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Engagement Agreement?

1. Compliance with Sharia: Specific clause confirming compliance with Islamic principles - required for financial services or when explicitly requested

2. Data Protection: Specific provisions for handling personal data - required when personal data processing is involved

3. Non-Competition: Restrictions on competitive activities - used when protecting business interests is crucial

4. Insurance: Insurance requirements - needed for high-risk services or when required by regulation

5. Key Personnel: Identification of key team members - important for specialized professional services

6. Quality Standards: Specific quality requirements - needed for technical or professional services

7. Zakat and Tax: Specific tax-related provisions - required when tax implications are significant

What schedules should be included in a Engagement Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and timelines

2. Schedule 2 - Fee Schedule: Detailed fee structure, rates, and payment terms

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Key Personnel: Details of key team members and their roles

5. Appendix A - Required Documents: List of necessary licenses, certificates, and regulatory approvals

6. Appendix B - Client Policies: Relevant client policies that the service provider must comply with

7. Appendix C - Compliance Requirements: Specific regulatory or Sharia compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
















































Clauses









































Relevant Industries

Professional Services

Consulting

Information Technology

Financial Services

Legal Services

Engineering

Healthcare

Education

Construction

Real Estate

Manufacturing

Energy

Telecommunications

Government Services

Islamic Finance

Relevant Teams

Legal

Procurement

Finance

Operations

Compliance

Risk Management

Commercial

Human Resources

Business Development

Project Management

Corporate Affairs

Administration

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Project Manager

Business Development Manager

Chief Executive Officer

Chief Financial Officer

Operations Director

Compliance Officer

Risk Manager

Commercial Director

Managing Partner

Human Resources Director

Department Head

General Manager

Corporate Secretary

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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