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Business Engagement Letter

Business Engagement Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Business Engagement Letter

"I need a Business Engagement Letter for my management consulting firm to provide strategic advisory services to a Saudi manufacturing company, including quarterly performance reviews and monthly reporting requirements, with the engagement starting March 1, 2025."

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Document background
The Business Engagement Letter is a crucial document used in Saudi Arabian business practice to formalize professional service relationships. It serves as the primary agreement between professional service providers and their clients, detailing the scope of work, compensation, and terms of engagement. This document is particularly important in the Saudi Arabian context as it must align with both international business practices and local legal requirements, including Sharia law principles. The Business Engagement Letter typically precedes the commencement of any professional services and is used across various sectors from consulting to legal services. It provides legal protection for both parties while clearly establishing expectations, deliverables, and commercial terms.
Suggested Sections

1. Letterhead and Date: Professional letterhead including firm details, address, and date in both Gregorian and Hijri calendars

2. Client Details: Full legal name and address of the client entity

3. Salutation: Formal greeting addressing the appropriate client representative

4. Introduction: Brief introduction confirming the purpose of the engagement and appreciation for the business opportunity

5. Scope of Services: Detailed description of the specific services to be provided, including any limitations or exclusions

6. Professional Fees: Clear breakdown of fees, payment terms, and billing arrangements including VAT considerations

7. Timeline: Expected duration or key milestones for the engagement

8. Team and Resources: Key personnel assigned to the engagement and their roles

9. Client Responsibilities: Outline of what is expected from the client, including information and access requirements

10. Confidentiality: Commitments regarding confidential information handling

11. Acceptance: Clear instructions for how to accept the engagement, including signature blocks

Optional Sections

1. Conflict Resolution: Include when specific dispute resolution mechanisms need to be established, particularly for high-value engagements

2. Liability Limitations: Add for professional services where liability caps are appropriate and permissible under Saudi law

3. Regulatory Compliance: Include for regulated industries or when specific regulatory requirements must be acknowledged

4. Sub-contractor Rights: Add when the engagement may require involvement of third-party service providers

5. Insurance Coverage: Include when specific insurance requirements need to be highlighted

6. Term and Termination: Add for longer-term engagements where specific termination provisions are necessary

7. Force Majeure: Include for longer-term engagements or when specific risk allocation is important

Suggested Schedules

1. Fee Schedule: Detailed breakdown of fees, rates, and payment terms

2. Service Description: Detailed technical or operational specifications of services to be provided

3. Key Personnel: Detailed information about team members and their qualifications

4. Project Timeline: Detailed project phases, milestones, and deliverables

5. Required Documents: List of documents and information required from the client

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Clauses
Scope of Services
Professional Fees
Payment Terms
Confidentiality
Term and Duration
Termination
Liability Limitation
Force Majeure
Client Obligations
Service Provider Obligations
Intellectual Property
Data Protection
Conflict of Interest
Non-Solicitation
Dispute Resolution
Governing Law
Assignment
Entire Agreement
Severability
Notices
Amendments
Professional Standards
Resources and Personnel
Warranties
Insurance
Anti-Corruption
Regulatory Compliance
Third-Party Rights
Indemnification
Sub-Contracting
Relevant Industries

Professional Services

Consulting

Legal Services

Accounting and Audit

Management Consulting

Information Technology

Engineering Services

Financial Services

Healthcare Services

Real Estate Advisory

Education and Training

Business Advisory

Environmental Consulting

Human Resources Services

Relevant Teams

Legal

Finance

Procurement

Compliance

Operations

Business Development

Risk Management

Contract Administration

Project Management

Executive Leadership

Human Resources

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Legal Counsel

Compliance Officer

Procurement Manager

Business Development Manager

Project Manager

Operations Director

Finance Director

Human Resources Director

Contract Manager

Risk Manager

Partner

Senior Partner

Department Head

Division Manager

Industries
Commercial Court Law (Royal Decree No. M/32): Governs commercial transactions and business relationships in Saudi Arabia, providing framework for business contracts and commercial obligations
Law of Professional Companies (Royal Decree No. M/17): Regulates professional services firms and their engagement with clients, including requirements for professional service agreements
Commercial Agencies Law (Royal Decree No. M/11): Regulates commercial agency relationships and representation agreements between parties in Saudi Arabia
Anti-Commercial Fraud Law (Royal Decree No. M/19): Ensures transparency and fairness in commercial dealings, including disclosure requirements in business agreements
Value Added Tax (VAT) Law: Governs tax implications and requirements for business services and professional engagements
Electronic Transactions Law (Royal Decree No. M/18): Regulates electronic communications and signatures in business transactions and agreements
Anti-Money Laundering Law (Royal Decree No. M/20): Imposes obligations regarding client due diligence and verification in business relationships
Labor Law (Royal Decree No. M/51): Relevant for provisions related to non-compete clauses and employment aspects in professional engagements
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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