Document background
The Preferred Partner Agreement is a strategic legal instrument used in Saudi Arabia to formalize privileged business relationships between companies. This document is particularly relevant when organizations wish to establish a preferred supplier or service provider arrangement that falls short of exclusivity but offers significant advantages over standard vendor relationships. The agreement typically includes detailed commercial terms, performance metrics, and compliance requirements while ensuring adherence to Saudi Arabian laws and Shariah principles. It's commonly used when companies want to maintain flexibility while securing preferential treatment in areas such as pricing, capacity allocation, or service levels. The document must comply with various Saudi regulations including the Commercial Courts Law, Competition Law, and where applicable, foreign investment regulations.
