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Non Compete Non Disclosure Agreement for Saudi Arabia

Non Compete Non Disclosure Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that combines both non-compete and confidentiality provisions. This document establishes restrictions on competitive activities and protects confidential information in accordance with Saudi Labor Law and Islamic Shariah principles. It includes specific provisions for defining protected information, scope of competitive restrictions, geographic limitations, and duration of obligations, while ensuring compliance with local regulations and recent reforms under Vision 2030. The agreement incorporates enforcement mechanisms recognized by Saudi courts and provides remedies aligned with local legal requirements.

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Non Compete Non Disclosure Agreement

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What is a Non Compete Non Disclosure Agreement?

The Non-Compete Non-Disclosure Agreement is essential for businesses operating in Saudi Arabia who need to protect their confidential information and prevent competitive activities by employees, contractors, or business partners. This document is particularly relevant in the context of Saudi Arabia's rapidly evolving business environment under Vision 2030, where protection of intellectual property and trade secrets is increasingly important. The agreement must comply with Saudi Labor Law, which requires non-compete provisions to be reasonable in duration, geographic scope, and nature of restricted activities. It typically includes detailed definitions of confidential information, specific competitive restrictions, and enforcement mechanisms that are compatible with both Saudi civil law and Shariah principles. This document is commonly used during employee onboarding, business partnerships, or when engaging consultants and contractors who will have access to sensitive information.

What sections should be included in a Non Compete Non Disclosure Agreement?

1. Parties: Identification of the contracting parties, including full legal names, addresses, and commercial registration details as required under Saudi law

2. Background: Context of the agreement, relationship between parties, and general purpose of the agreement

3. Definitions: Detailed definitions of key terms, especially 'Confidential Information', 'Competing Business', and 'Restricted Territory'

4. Confidentiality Obligations: Detailed provisions regarding the protection, use, and non-disclosure of confidential information

5. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographic limitations as per Saudi Labor Law

6. Duration and Term: Period of effectiveness for both confidentiality and non-compete obligations

7. Return of Confidential Information: Procedures for returning or destroying confidential information upon agreement termination

8. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including legal requirements

9. Security Measures: Required procedures for protecting confidential information

10. Breach and Remedies: Consequences of breach and available remedies under Saudi law

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant court jurisdiction

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

What sections are optional to include in a Non Compete Non Disclosure Agreement?

1. Shariah Compliance: Explicit statement of Shariah compliance, recommended for agreements involving Islamic financial institutions

2. International Transfers: Provisions for international transfer of confidential information, needed if parties operate across borders

3. Training and Compliance: Provisions for training requirements and compliance programs, useful for complex organizational relationships

4. Third Party Rights: Provisions regarding rights of third parties, needed if third party beneficiaries are involved

5. Insurance Requirements: Obligations to maintain specific insurance coverage, relevant for high-risk information or activities

6. Arbitration: Alternative dispute resolution procedures, recommended for international parties

What schedules should be included in a Non Compete Non Disclosure Agreement?

1. Schedule 1 - Specified Confidential Information: Detailed list of specific confidential information covered by the agreement

2. Schedule 2 - Restricted Territory: Detailed description and/or maps of geographic areas covered by non-compete provisions

3. Schedule 3 - Competing Business Activities: Specific description of prohibited competitive activities

4. Schedule 4 - Authorized Representatives: List of individuals authorized to receive confidential information

5. Schedule 5 - Security Protocols: Detailed security measures and procedures for handling confidential information

6. Appendix A - Form of Acknowledgment: Template for employees/contractors to acknowledge receipt and understanding of obligations

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

Cost

Free to use
Relevant legal definitions









































Clauses
































Relevant Industries

Technology

Oil & Gas

Financial Services

Healthcare

Manufacturing

Professional Services

Telecommunications

Real Estate Development

Construction

Retail

Education

Defense & Security

Mining & Minerals

Renewable Energy

Logistics & Transportation

Pharmaceuticals

Relevant Teams

Legal

Human Resources

Research & Development

Executive Leadership

Sales

Information Technology

Product Development

Finance

Operations

Business Development

Strategic Planning

Technical Services

Customer Relations

Project Management

Procurement

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Manager

Research & Development Engineer

Sales Director

Business Development Manager

Technical Consultant

Product Manager

Financial Controller

Operations Manager

Project Manager

Software Developer

Systems Architect

Account Manager

Strategy Consultant

Human Resources Director

Legal Counsel

Department Head

Regional Manager

Technical Specialist

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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