Investment Management Contract Template for Saudi Arabia

The Investment Management Contract is a crucial document used when establishing a professional investment management relationship in Saudi Arabia. It is specifically designed for situations where a CMA-licensed investment manager takes responsibility for managing client assets in compliance with Saudi regulations and Sharia law. The contract covers essential aspects including investment strategy, risk management, fee structures, and reporting requirements, while ensuring compliance with the Capital Market Law and related regulations. This document is particularly important given Saudi Arabia's evolving financial markets and the implementation of Vision 2030, which has introduced new regulatory requirements and investment opportunities. The agreement must reflect both international best practices in investment management and local regulatory requirements, including Islamic finance principles.

1. Parties: Identification of the Investment Manager and the Client, including their full legal names, addresses, and registration details

2. Background: Context of the agreement, including the Investment Manager's licensing status with CMA and the Client's intention to appoint the manager

3. Definitions: Comprehensive list of defined terms used throughout the agreement, including regulatory and financial terms

4. Appointment and Authority: Formal appointment of the Investment Manager and scope of delegated authority

5. Investment Objectives and Strategy: Detailed outline of agreed investment objectives, strategy, and any investment restrictions

6. Sharia Compliance: Confirmation of adherence to Sharia principles and specific requirements for Islamic investment management

7. Services and Obligations: Detailed description of services to be provided by the Investment Manager and their specific obligations

8. Client's Obligations: Responsibilities and obligations of the Client, including information provision and cooperation requirements

9. Fees and Expenses: Comprehensive breakdown of management fees, performance fees, and other applicable charges

10. Reporting and Valuations: Requirements for periodic reporting, performance evaluation, and portfolio valuation methodology

11. Risk Disclosures: Detailed disclosure of investment risks and market uncertainties

12. Confidentiality: Provisions regarding the handling of confidential information and data protection

13. Conflicts of Interest: Procedures for identifying, managing, and disclosing potential conflicts of interest

14. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

15. Liability and Indemnification: Extent of Investment Manager's liability and mutual indemnification provisions

16. Governing Law and Jurisdiction: Specification of Saudi Arabian law as governing law and jurisdiction for disputes