Document background
The Business Management Agreement is essential for businesses in Saudi Arabia seeking to delegate operational control to professional management entities while maintaining compliance with local regulations and Sharia law. This document is typically used when a company wishes to benefit from professional management expertise, during ownership transitions, or when expanding operations requires specialized management capabilities. The agreement comprehensively covers management authority, operational responsibilities, financial controls, and reporting structures, while ensuring alignment with Saudi Arabian commercial laws, foreign investment regulations (if applicable), and Islamic business principles. It's particularly crucial for businesses requiring sophisticated management structures or those involving foreign expertise within the Saudi market.
