Client Engagement Letter for Saudi Arabia

Client Engagement Letter Template for Saudi Arabia

A Client Engagement Letter is a formal document used in Saudi Arabia to establish and define the professional relationship between a service provider and their client. This document outlines the scope of services, fee arrangements, responsibilities of both parties, and key terms of the engagement while ensuring compliance with Saudi Arabian laws and regulations, including Sharia principles where applicable. It serves as a crucial legal and professional document that protects both parties' interests and sets clear expectations for the professional relationship, incorporating specific requirements under Saudi commercial law and professional services regulations.

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What is a Client Engagement Letter?

The Client Engagement Letter is a fundamental document used in professional services contexts within Saudi Arabia to formalize the relationship between service providers and their clients. It is typically issued at the beginning of a new professional engagement or when there are significant changes to an existing arrangement. The document must comply with Saudi Arabian legal requirements, including various professional services regulations and Sharia principles. A Client Engagement Letter includes essential information such as scope of services, fee structures, timelines, confidentiality provisions, and regulatory compliance requirements. It serves as both a legal protection and a practical roadmap for the professional relationship, ensuring clarity and mutual understanding between parties while meeting local regulatory obligations.

What sections should be included in a Client Engagement Letter?

1. Letter Header and Date: Professional letterhead, date, and reference number

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

3. Salutation and Introduction: Formal greeting and introductory paragraph thanking client for choosing the firm

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

5. Professional Fees: Fee structure, payment terms, and billing arrangements

6. Team Structure: Key team members and their roles in providing the services

7. Timeline: Expected duration and key milestones of the engagement

8. Client Responsibilities: Clear outline of what is expected from the client

9. Confidentiality: Confidentiality obligations and information handling procedures

10. Regulatory Compliance: Statements regarding compliance with Saudi regulations and professional standards

11. Termination Provisions: Conditions and process for ending the engagement

12. Acceptance and Signature: Signature blocks and instructions for accepting the engagement

What sections are optional to include in a Client Engagement Letter?

1. Conflict Resolution: Include when specific dispute resolution mechanisms need to be established

2. International Services: Add when services involve cross-border elements or international offices

3. Specific Risk Disclosures: Include for high-risk engagements or regulated services

4. Data Protection Provisions: Add when engagement involves significant personal data processing

5. Third Party Rights: Include when other parties may have rights under the engagement

6. Force Majeure: Add when specific force majeure provisions are required

7. Insurance Coverage: Include for high-value or high-risk engagements

8. Sharia Compliance Statement: Add when services must explicitly comply with Sharia principles

What schedules should be included in a Client Engagement Letter?

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

2. Service Description: Detailed scope of work and deliverables

3. Team Profiles: Biographical information of key team members

4. Standard Terms and Conditions: Firm's standard terms and conditions

5. Compliance Requirements: Regulatory and compliance obligations specific to the engagement

6. Document Requirements: List of documents and information required from the client

7. Project Timeline: Detailed project schedule and milestones

8. Power of Attorney: If required for specific services, template for client authorization

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Cost

Free to use

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