Document background
The No Win No Fee Agreement is utilized in Saudi Arabia when a client seeks legal representation but prefers to pay legal fees only upon achieving a successful outcome. This arrangement, while common in many jurisdictions, requires careful structuring in Saudi Arabia to ensure compliance with both civil law requirements and Sharia principles. The document typically outlines specific success criteria, fee calculations, risk allocation, and the responsibilities of both the legal service provider and the client. It includes provisions for handling costs and disbursements, termination conditions, and dispute resolution mechanisms. The agreement must be drafted in accordance with Saudi Legal Practice Law (Royal Decree No. M/38) and Saudi Bar Association regulations, while ensuring that the contingency fee structure does not conflict with Islamic principles regarding uncertainty (gharar) and usury (riba). This type of agreement is particularly relevant in civil litigation, commercial disputes, and personal injury cases where clients may have limited resources to fund legal proceedings upfront.
