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The Equal Partnership Agreement serves as a foundational document for businesses in Saudi Arabia where partners seek to establish an enterprise with equal stakes, rights, and responsibilities. This document is particularly crucial when two or more parties wish to form a business partnership where all partners maintain equal standing in terms of capital contribution, profit sharing, and management rights. The agreement must comply with Saudi Companies Law 2015, Sharia principles, and relevant Ministry of Commerce regulations. It typically includes detailed provisions for capital contributions, profit/loss sharing, management structure, partner obligations, dispute resolution mechanisms, and exit procedures. This type of agreement is commonly used for professional services firms, family businesses, and joint ventures where partners want to ensure equal participation and control in the business venture.

1. Parties: Identification of all partners with full legal names and addresses

2. Background: Context of the partnership formation and partners' intention to establish an equal partnership

3. Definitions: Key terms used throughout the agreement

4. Partnership Formation: Declaration of partnership formation, business purpose, and commencement date

5. Capital Contributions: Equal capital contributions from each partner and terms for additional contributions

6. Profit and Loss Sharing: Equal distribution of profits and losses among partners

7. Management Rights: Equal management rights and decision-making processes

8. Partner Meetings: Procedures for regular and special partner meetings, voting rights

9. Books and Records: Maintenance of partnership records, accounting practices, and partner access rights

10. Banking and Financial Matters: Banking arrangements, signing authorities, and financial controls

11. Partner Duties and Obligations: Partners' responsibilities, duties of loyalty, and non-compete provisions

12. Transfer of Partnership Interest: Restrictions and procedures for transferring partnership interests

13. Addition and Withdrawal of Partners: Process for admitting new partners and handling partner withdrawals

14. Dissolution and Liquidation: Circumstances and procedures for partnership dissolution

15. Dispute Resolution: Procedures for resolving disputes between partners in accordance with Saudi law

16. Governing Law: Specification of Saudi law and Sharia compliance

17. General Provisions: Miscellaneous legal provisions including notices, amendments, and severability