Document background
The Non-Binding Partnership Agreement is a preliminary document used in Saudi Arabia during the exploratory phase of business relationships, where parties wish to document their intentions and proposed arrangements without creating legally binding obligations. It serves as a roadmap for potential collaboration while allowing flexibility for negotiations and due diligence. This document type is particularly valuable in the Saudi Arabian business context, where relationship-building and careful consideration of partnership terms are cultural priorities. It typically includes proposed structural elements such as governance frameworks, resource allocation, and operational procedures, while explicitly maintaining its non-binding nature. The agreement is commonly used when parties need to outline their shared vision and objectives before committing to a formal partnership, or when seeking internal approvals and stakeholder buy-in. It must be drafted in consideration of Saudi Arabian commercial laws and Shariah principles, making it suitable for both domestic and international business relationships.
