The Annual Service Contract is a fundamental commercial document used in Saudi Arabia to establish long-term service relationships between businesses. It is particularly relevant when there is a need for continuous service provision over a twelve-month period, requiring detailed specification of service levels, performance metrics, and payment terms. This document type must comply with Saudi Arabian commercial law and Sharia principles, particularly in areas such as payment terms and dispute resolution. It is commonly used across various industries where regular, ongoing services are required, from facility management to technical support. The contract typically includes comprehensive schedules detailing service specifications, KPIs, and operational procedures, while incorporating necessary provisions for local content requirements and Saudi business regulations. This document type is essential for businesses operating in Saudi Arabia that need to establish clear, legally compliant frameworks for their service relationships.

1. Parties: Identification of the service provider and customer, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Term and Renewal: Duration of the agreement, commencement date, and renewal terms

6. Payment Terms: Service fees, payment schedule, invoicing procedures, and payment methods (ensuring Sharia compliance)

7. Service Provider Obligations: Detailed responsibilities and commitments of the service provider

8. Customer Obligations: Responsibilities and commitments of the customer, including access, information, and cooperation requirements

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

10. Compliance: Obligation to comply with Saudi laws, regulations, and Sharia principles

11. Confidentiality: Protection of confidential information and trade secrets

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

13. Force Majeure: Events excusing performance and procedures for handling force majeure situations

14. Termination: Grounds for termination, notice requirements, and consequences of termination

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law provisions

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

17. Execution: Signature blocks and execution formalities