Management Fee Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Management Fee Agreement

"I need a Management Fee Agreement for our UK-based management company to provide asset management services to our Saudi Arabian real estate development project starting March 2025, including quarterly reporting requirements and compliance with both Saudi and Sharia law."

Document background
A Management Fee Agreement is essential for businesses operating in Saudi Arabia where one entity provides management services to another. This document is commonly used in corporate group structures, investment arrangements, and business relationships where specialized management expertise is required. The agreement must be structured to comply with Saudi Arabian law, including the Commercial Courts Law, Civil Transactions Law, and relevant regulatory requirements. It defines the scope of management services, fee calculations, payment terms, and performance expectations while ensuring Sharia compliance. The document is particularly relevant for foreign companies providing management services in Saudi Arabia, as it must address both local regulatory requirements and international business practices. The agreement typically includes comprehensive provisions for service delivery, governance, reporting structures, and risk allocation, while considering tax implications including VAT and Zakat requirements.
Suggested Sections

1. Parties: Identification of the service provider and recipient, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, business relationship, and purpose of the management services

3. Definitions: Key terms used throughout the agreement, including 'Management Services', 'Fee', 'Service Period', etc.

4. Scope of Services: Detailed description of management services to be provided, including specific responsibilities and deliverables

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Management Fees: Fee structure, calculation methodology, and payment terms including VAT considerations

7. Payment Terms: Timing of payments, invoicing procedures, currency, and payment method

8. Obligations of Service Provider: Key responsibilities, service standards, and compliance requirements

9. Obligations of Recipient: Cooperation requirements, information provision, and other recipient duties

10. Representations and Warranties: Standard commercial warranties and Sharia compliance declarations

11. Confidentiality: Protection of confidential information and trade secrets

12. Governing Law and Jurisdiction: Application of Saudi law and dispute resolution mechanisms

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

Optional Sections

1. Personnel: Include when management services involve deployment of specific personnel or teams

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

3. Performance Metrics: Include when agreement includes specific KPIs or performance standards

4. Regulatory Compliance: Include for regulated industries or when specific regulatory requirements apply

5. Insurance: Include when specific insurance coverage is required

6. Non-Competition: Include when restrictions on competitive activities are necessary

7. Force Majeure: Include when specific force majeure provisions are needed beyond standard provisions

8. Anti-corruption: Include for international agreements or when dealing with public sector

9. Data Protection: Include when services involve processing of personal or sensitive data

Suggested Schedules

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

2. Schedule 2 - Fee Schedule: Detailed fee structure, calculations, and examples

3. Schedule 3 - Service Levels: Performance standards and measurement criteria

4. Schedule 4 - Key Personnel: List of key personnel and their roles if applicable

5. Schedule 5 - Reporting Requirements: Format and frequency of management reports

6. Appendix A - Power of Attorney: If required for specific management functions

7. Appendix B - Compliance Requirements: Specific regulatory or Sharia compliance requirements

8. Appendix C - Forms and Templates: Standard forms for invoicing, reporting, and other regular communications

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Real Estate

Healthcare

Hospitality

Manufacturing

Construction

Retail

Technology

Energy

Infrastructure

Transportation

Education

Professional Services

Investment Management

Industrial

Relevant Teams

Legal

Finance

Operations

Compliance

Commercial

Risk Management

Business Development

Treasury

Corporate Governance

Investment

Project Management

Administrative

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Commercial Director

Operations Manager

Finance Manager

Compliance Officer

Contract Manager

Business Development Manager

Investment Manager

Managing Director

Head of Legal

Project Manager

Risk Manager

Treasury Manager

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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