Joint Venture Agreement (Real Estate) Template for Saudi Arabia

The Joint Venture Agreement (Real Estate) is a crucial document used when two or more parties wish to collaborate on real estate projects in Saudi Arabia. This agreement is particularly relevant in the context of Saudi Arabia's growing real estate sector and Vision 2030 initiatives, which have created numerous opportunities for domestic and international collaboration in property development and investment. The document addresses key aspects required under Saudi law, including Sharia compliance, foreign investment regulations, and real estate-specific requirements. It typically includes detailed provisions for capital contributions, profit sharing, management structure, development plans, and exit strategies. The agreement is essential for projects ranging from commercial and residential developments to mixed-use properties and infrastructure projects, providing a framework for both Saudi and foreign investors to participate in the kingdom's real estate market while ensuring compliance with local regulations and business practices.

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

2. Background: Context of the joint venture, including the purpose and objectives of the collaboration in real estate

3. Definitions and Interpretation: Key terms used throughout the agreement, including real estate-specific terminology and Sharia-compliant concepts

4. Formation of Joint Venture: Legal structure, name, and purpose of the JV entity, including compliance with Saudi Companies Law

5. Capital Contributions: Details of initial and future contributions, including land, cash, assets, or services

6. Ownership and Shareholding: Percentage ownership, share classes, and any restrictions on transfer

7. Management and Control: Governance structure, board composition, voting rights, and decision-making processes

8. Business Plan and Budget: Initial business plan, development strategy, and financial projections

9. Real Estate Development and Operations: Specific provisions regarding property development, management, and operation

10. Profit and Loss Sharing: Distribution of profits and allocation of losses in a Sharia-compliant manner

11. Banking and Finance: Banking arrangements, funding requirements, and Sharia-compliant financing provisions

12. Compliance and Permits: Obligations regarding regulatory compliance, licenses, and permits

13. Representations and Warranties: Standard and real estate-specific warranties from each party

14. Confidentiality: Protection of confidential information and trade secrets

15. Term and Termination: Duration of the JV and circumstances for termination

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

17. General Provisions: Standard boilerplate clauses adapted for Saudi law