Preliminary Partnership Agreement Template for Saudi Arabia

1. Regulatory Compliance: Specific section addressing compliance with Saudi regulations, particularly relevant if the partnership involves regulated industries

2. Shariah Compliance: Specific provisions ensuring compliance with Shariah principles, particularly relevant for financial services partnerships

3. Foreign Investment Provisions: Required when one or more partners are non-Saudi entities, addressing SAGIA requirements

4. Intellectual Property: Provisions regarding IP rights and their treatment during the preliminary phase, relevant when IP is a key asset

5. Employment Matters: Preliminary agreements regarding key personnel and employment structures, relevant for larger partnerships

6. Cost Sharing: Agreement on how preliminary expenses will be shared, relevant for complex partnerships requiring significant preparatory work

1. Schedule 1: Initial Business Plan: High-level outline of the proposed business activities and objectives

2. Schedule 2: Proposed Capital Structure: Preliminary breakdown of capital contributions and ownership structure

3. Schedule 3: Due Diligence Requirements: List of required documents and information for due diligence

4. Schedule 4: Timeline and Milestones: Detailed timeline for moving from preliminary to final agreement

5. Schedule 5: Required Approvals: List of regulatory and other approvals needed for the final partnership

6. Appendix A: Key Terms Sheet: Summary of key commercial terms agreed in principle