Document background
The Construction Joint Venture Agreement is a crucial document used in Saudi Arabia's rapidly developing construction sector, particularly relevant in the context of Vision 2030's infrastructure and development goals. This agreement is essential when two or more companies wish to combine their resources, expertise, and capabilities for construction projects in Saudi Arabia. It is commonly used when international construction firms seek to enter the Saudi market in partnership with local entities, or when local companies collaborate on large-scale projects. The document addresses key aspects such as capital contributions, profit sharing, management control, and operational responsibilities while ensuring compliance with Saudi laws, including foreign investment regulations, contractor classification requirements, and Saudization policies. It's particularly valuable for complex construction projects where risk sharing and combined expertise are necessary for successful project execution.
