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Service Provider Contract for Saudi Arabia

Service Provider Contract Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions under which a service provider will deliver specified services to a client. This document incorporates key requirements of Saudi commercial law, including Shariah compliance principles, and addresses essential elements such as service scope, payment terms, performance standards, and dispute resolution mechanisms. The contract ensures compliance with local regulations while protecting both parties' interests through clear delineation of rights, obligations, and remedies available under Saudi jurisdiction.

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Service Provider Contract

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What is a Service Provider Contract?

The Service Provider Contract is a fundamental legal instrument used in Saudi Arabia to formalize service delivery arrangements between service providers and their clients. This document is essential when engaging external service providers for various business functions, whether they are companies or individuals. It must comply with Saudi Arabian law, including Shariah principles and relevant commercial regulations, while addressing key aspects such as service scope, performance metrics, payment terms, and risk allocation. The contract should be used whenever a business requires external services, from IT support to consulting, and needs to establish clear contractual obligations, protect intellectual property, ensure data security, and maintain compliance with local laws. This document is particularly important given Saudi Arabia's unique legal framework and the increasing focus on service sector development under Vision 2030.

What sections should be included in a Service Provider Contract?

1. Parties: Identification of the contracting parties, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and general purpose of the service arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for contract interpretation

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

5. Term and Commencement: Duration of the agreement, including start date and any renewal provisions

6. Service Provider's Obligations: Core responsibilities and duties of the service provider

7. Client's Obligations: Core responsibilities and duties of the client

8. Fees and Payment Terms: Compensation structure, payment schedule, and invoicing requirements

9. Service Levels: Performance standards, KPIs, and measurement criteria

10. Compliance with Laws: Obligation to comply with Saudi laws and regulations, including Shariah principles

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Insurance: Required insurance coverage and minimum limits

15. Termination: Grounds for termination, notice requirements, and consequences

16. Force Majeure: Events excusing performance and related procedures

17. Dispute Resolution: Process for resolving disputes under Saudi law

18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Service Provider Contract?

1. Data Protection: Required when personal data processing is involved in service delivery

2. Anti-Corruption: Additional compliance requirements for government contracts or high-value services

3. Change Control: Needed for complex services requiring formal change management procedures

4. Business Continuity: Important for critical services requiring disaster recovery planning

5. Security Requirements: Necessary for services involving IT systems or sensitive information

6. Key Personnel: Required when specific individuals are crucial to service delivery

7. Training: Relevant when service provider must train client's staff

8. Transition Services: Important for complex services requiring handover periods

9. Subcontracting: Needed when service provider may use subcontractors

10. Local Content Requirements: Required for contracts subject to Saudi Arabia's local content rules

What schedules should be included in a Service Provider Contract?

1. Schedule 1 - Service Description: Detailed technical specifications and scope of services

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics and measurement methodology

3. Schedule 3 - Fees and Payment Schedule: Detailed pricing, payment terms, and invoicing procedures

4. Schedule 4 - Implementation Plan: Timeline and milestones for service implementation

5. Schedule 5 - Required Insurance: Specific insurance types and coverage limits

6. Schedule 6 - Key Personnel: Details of key team members and their roles

7. Schedule 7 - Form of Reports: Templates and requirements for service reporting

8. Schedule 8 - Exit Plan: Procedures for service termination and transition

9. Appendix A - Required Documentation: List of permits, licenses, and certificates required

10. Appendix B - Technical Requirements: Detailed technical specifications and standards

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

Service Agreement

Cost

Free to use
Relevant legal definitions











































Clauses


















































Relevant Industries

Information Technology

Professional Services

Consulting

Facilities Management

Construction

Healthcare

Education

Financial Services

Telecommunications

Manufacturing

Oil & Gas

Transportation & Logistics

Real Estate

Media & Entertainment

Engineering Services

Relevant Teams

Legal

Procurement

Finance

Operations

Risk & Compliance

Commercial

Human Resources

Information Technology

Facilities Management

Project Management

Relevant Roles

Legal Counsel

Procurement Manager

Contract Manager

Chief Financial Officer

Operations Director

Project Manager

Risk Manager

Compliance Officer

Business Development Manager

Commercial Director

Chief Executive Officer

Human Resources Director

Chief Technology Officer

Facilities Manager

General Manager

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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