Document background
The Joint Venture Management Agreement is a crucial document used when two or more parties wish to establish and manage a joint business venture in Saudi Arabia. It becomes necessary when partners seek to formalize their collaboration while ensuring compliance with Saudi Companies Law, foreign investment regulations, and Sharia principles. The agreement typically follows the formation of a joint venture company and provides detailed provisions for its management, including board composition, shareholder rights, operational control, profit distribution, and exit mechanisms. This document is particularly important in the Saudi Arabian context due to specific local regulatory requirements, including foreign investment restrictions, Saudization requirements, and the need for various governmental approvals. It serves as the primary reference document for resolving management issues and governing the ongoing relationship between joint venture partners.
