Management Agreement Form for Saudi Arabia

Management Agreement Form Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that establishes and regulates the relationship between a management service provider and a client company. This agreement outlines the scope of management services, responsibilities, compensation structure, and operational parameters while ensuring compliance with Saudi commercial regulations and Shariah principles. It includes specific provisions for performance metrics, reporting requirements, and dispute resolution mechanisms tailored to the Saudi legal framework, incorporating necessary approvals from relevant authorities such as the Ministry of Commerce and, where applicable, the Saudi Arabian General Investment Authority.

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What is a Management Agreement Form?

The Management Agreement Form is a crucial document used in Saudi Arabia when one entity (the management company) is appointed to manage operations, facilities, or specific aspects of another entity's business. This agreement is particularly important in the Saudi Arabian context as it must comply with both commercial regulations and Shariah law principles. The document typically outlines comprehensive management responsibilities, performance standards, financial arrangements, and reporting requirements while incorporating necessary regulatory approvals. It's commonly used in various scenarios including property management, facility operations, business administration, and project management. The agreement must account for Saudi-specific requirements such as local partnership rules, foreign investment regulations, and mandatory governmental approvals. This form serves as a foundational document that governs the management relationship while ensuring all activities align with Saudi Arabian legal and religious frameworks.

What sections should be included in a Management Agreement Form?

1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details

2. Background: Context of the agreement including business purpose and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and detailed scope of management services

5. Manager's Rights and Obligations: Comprehensive outline of management responsibilities, authority levels, and duties

6. Client's Rights and Obligations: Client's responsibilities, including provision of information and resources

7. Financial Terms: Management fees, payment terms, expenses, and financial reporting requirements

8. Performance Standards: Expected service levels and performance metrics

9. Compliance and Reporting: Regulatory compliance requirements and reporting obligations

10. Confidentiality: Protection of confidential information and trade secrets

11. Duration and Renewal: Term of agreement and renewal provisions

12. Termination: Grounds for termination, notice requirements, and consequences

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Management Agreement Form?

1. Foreign Investment Provisions: Required when the manager is a foreign entity, addressing SAGIA requirements

2. Intellectual Property: Needed when management services involve creation or use of intellectual property

3. Staff Secondment: Required when management includes provision of personnel

4. Non-Competition: Added when protection against competitive activities is needed

5. Force Majeure: Detailed force majeure provisions beyond standard clause

6. Insurance: Specific insurance requirements beyond standard coverage

7. Shariah Compliance: Detailed provisions ensuring compliance with Islamic law principles

8. Data Protection: Required when management involves handling personal or sensitive data

What schedules should be included in a Management Agreement Form?

1. Schedule 1 - Services Description: Detailed breakdown of management services and deliverables

2. Schedule 2 - Fee Structure: Detailed fee calculations, incentives, and payment mechanisms

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria

4. Schedule 4 - Reporting Requirements: Format and frequency of required reports

5. Schedule 5 - Key Personnel: List of key management team members and their roles

6. Schedule 6 - Operational Procedures: Detailed operational processes and procedures

7. Appendix A - Power of Attorney: If required, specific management powers granted

8. Appendix B - Compliance Checklist: Regulatory and Shariah compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate & Property Management

Hospitality & Tourism

Healthcare

Retail & Commercial Centers

Manufacturing & Industrial

Education & Training

Technology & IT Services

Construction & Infrastructure

Financial Services

Telecommunications

Transportation & Logistics

Energy & Utilities

Relevant Teams

Legal

Operations

Compliance

Commercial

Contract Administration

Business Development

Risk Management

Project Management

Property Management

Human Resources

Finance

Corporate Governance

Relevant Roles

Chief Executive Officer

Managing Director

Operations Director

Legal Counsel

Compliance Officer

Contract Manager

Business Development Manager

Project Manager

Facility Manager

Property Manager

General Manager

Regional Manager

Risk Manager

Commercial Director

Human Resources Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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