Client Engagement Agreement Template for Saudi Arabia

The Client Engagement Agreement serves as the primary contractual framework for professional service providers operating in Saudi Arabia to formalize their relationship with clients. This document is essential for any professional services engagement in the Kingdom, whether for consulting, advisory, technical, or other professional services. It must comply with Saudi Arabian law, including the Civil Transactions Law of 2020, Commercial Courts Law, and relevant sector-specific regulations. The agreement typically covers service scope, deliverables, payment terms, confidentiality, intellectual property rights, and dispute resolution, while ensuring alignment with Sharia principles. It's particularly important for international service providers to ensure their agreements accommodate local legal requirements and business practices.

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

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

3. Definitions: Key terms used throughout the agreement

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

5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

6. Fees and Payment Terms: Fee structure, payment schedule, and invoicing requirements including VAT considerations

7. Obligations of Service Provider: Key responsibilities and service standards

8. Client Responsibilities: Client's obligations including provision of information and cooperation

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Data Protection: Compliance with Saudi PDPL and data handling requirements

11. Intellectual Property: Ownership and usage rights of materials and deliverables

12. Liability and Indemnification: Limitations of liability and indemnification provisions compliant with Saudi law

13. Force Majeure: Events excusing performance, aligned with Sharia principles

14. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction of Saudi courts

15. Notices: Method and addresses for formal communications

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