Investment Agency Agreement Template for Saudi Arabia

The Investment Agency Agreement is a crucial document used in Saudi Arabia when establishing a formal relationship between an investment principal and an appointed investment agent for managing investment activities. This agreement is particularly relevant in the Saudi Arabian market where financial transactions must comply with both conventional regulatory requirements and Islamic Shariah principles. The document addresses key aspects including investment mandate, authority limits, compliance requirements, risk management, reporting obligations, and fee structures. It is designed to meet the requirements of the Saudi Capital Market Authority (CMA) regulations and includes specific provisions for Islamic investment principles. The agreement is commonly used by financial institutions, investment firms, and high-net-worth individuals seeking professional investment management services within the Saudi Arabian jurisdiction.

1. Parties: Identification of the Principal (Investment Owner) and the Agent (Investment Manager), including full legal names and addresses

2. Background: Context of the agreement, including the Principal's intention to appoint the Agent for investment management services

3. Definitions and Interpretation: Defined terms, interpretation rules, and references to Saudi laws and Shariah principles

4. Appointment and Scope: Formal appointment of the Agent and detailed scope of investment authority

5. Agent's Duties and Responsibilities: Comprehensive list of the Agent's obligations, including investment management, reporting, and compliance duties

6. Principal's Rights and Obligations: Principal's responsibilities, including providing funds and information, and rights regarding investment decisions

7. Investment Guidelines: Specific parameters for investments, including permitted asset classes, risk limits, and Shariah compliance requirements

8. Fees and Expenses: Detailed fee structure, payment terms, and allocation of expenses

9. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity and authority

10. Compliance and Regulatory Matters: Obligations regarding Saudi regulations, CMA requirements, and Shariah compliance

11. Confidentiality: Protection and handling of confidential information

12. Term and Termination: Duration of agreement and circumstances for termination

13. Liability and Indemnification: Extent of Agent's liability and mutual indemnification provisions

14. Force Majeure: Provisions for unforeseen circumstances affecting performance

15. Governing Law and Jurisdiction: Application of Saudi law and dispute resolution mechanisms

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