The Consulting Services Agreement is essential for businesses operating in Saudi Arabia that engage external expertise for various professional services. This document is specifically designed to comply with Saudi Arabian law and Sharia principles, making it suitable for both domestic and international consulting arrangements. It provides a comprehensive framework for defining the consulting relationship, protecting both parties' interests, and ensuring compliance with local regulations. The agreement includes crucial elements such as scope of services, payment terms, confidentiality provisions, and dispute resolution mechanisms that align with Saudi commercial law. It's particularly important for distinguishing consulting relationships from employment relationships and addressing specific requirements of Saudi business regulations, including commercial registration requirements and VAT implications.

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

2. Background: Context of the agreement and general purpose of the consulting engagement

3. Definitions: Key terms used throughout the agreement, including specific consulting service definitions

4. Scope of Services: Detailed description of consulting services to be provided, including deliverables and exclusions

5. Term and Termination: Duration of the agreement, renewal terms, and termination rights including Sharia-compliant termination provisions

6. Fees and Payment: Compensation structure, payment terms, and VAT considerations in accordance with Saudi tax regulations

7. Consultant's Obligations: Key responsibilities, performance standards, and compliance with Saudi laws

8. Client's Obligations: Client responsibilities, including provision of information and access

9. Confidentiality: Protection of confidential information in accordance with Saudi data protection regulations

10. Intellectual Property: Ownership and usage rights of pre-existing and created IP during the consultation

11. Independent Contractor Status: Clear statement of independent contractor relationship to avoid employment classification

12. Compliance with Laws: Obligation to comply with Saudi laws, including commercial and religious requirements

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

14. Force Majeure: Events excusing performance, including reference to Islamic law principles

15. Dispute Resolution: Dispute resolution mechanism following Saudi law, typically referring to Saudi courts or arbitration

16. Governing Law: Explicit reference to Saudi law and Sharia principles as governing law

17. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions