Framework Collaboration Agreement Template for Saudi Arabia

The Framework Collaboration Agreement is designed for organizations seeking to establish a long-term collaborative relationship in Saudi Arabia while maintaining flexibility for specific project implementations. This document type is particularly useful when parties anticipate multiple joint initiatives but want to avoid negotiating complete terms for each project. The agreement must comply with Saudi Arabian law and Shariah principles, making it suitable for both domestic and international collaborations within the Kingdom. It typically includes provisions for governance structure, resource allocation, intellectual property rights, and dispute resolution mechanisms while allowing for project-specific details to be addressed in subsequent work orders or project agreements. The framework nature of the agreement makes it ideal for complex business relationships where the exact scope of future collaborations may not be fully defined at the outset.

1. Parties: Identification of the contracting parties with full legal names and registration details

2. Background: Context of the collaboration and high-level objectives

3. Definitions and Interpretation: Key terms used throughout the agreement and interpretation rules

4. Scope of Collaboration: General framework and parameters of the collaboration

5. Term and Renewal: Duration of the agreement and renewal mechanisms

6. Governance Structure: Management committee structure, composition, and decision-making processes

7. Project Implementation: Process for initiating and managing specific projects under the framework

8. Financial Arrangements: General principles for cost sharing and financial responsibilities

9. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created IP

10. Confidentiality: Protection and handling of confidential information

11. Compliance with Laws: Obligation to comply with Saudi laws including Shariah principles

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Dispute Resolution: Process for resolving disputes, including Saudi law requirements

15. Termination: Grounds and process for termination and consequences

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