Document background
The Joint Venture Construction Agreement is essential for parties looking to collaborate on construction projects in Saudi Arabia. It is particularly relevant in the context of Saudi Vision 2030, which emphasizes infrastructure development and increased private sector participation. The agreement combines standard joint venture provisions with specific requirements of Saudi Arabian law, including foreign investment restrictions, local content requirements, and Shariah compliance. It is typically used when international construction companies want to partner with local Saudi entities to undertake major construction projects, ensuring compliance with local regulations while facilitating knowledge transfer and technological expertise sharing. The document addresses crucial aspects such as capital contributions, profit sharing, management structure, project execution, and dispute resolution mechanisms, all within the framework of Saudi Arabian legal requirements.
