Price Offer Letter Template for Saudi Arabia

A Price Offer Letter is a crucial business document used in the Saudi Arabian market to initiate commercial transactions and formalize pricing proposals. It serves as an official communication tool between suppliers and potential customers, providing detailed information about products or services, pricing structures, payment terms, and delivery conditions. The document must adhere to Saudi Arabian commercial law and Sharia principles, particularly regarding pricing transparency and permissible payment terms. It's commonly used when responding to requests for quotations, during tender processes, or in direct business negotiations. The document should clearly state VAT implications, validity periods, and any specific terms or conditions that may affect the offer. While not a binding contract itself, a Price Offer Letter often forms the foundation for subsequent contractual agreements and is therefore crucial in the business negotiation process.

1. Letter Header: Company letterhead, date, reference number, and recipient's full details

2. Subject Line: Clear indication that this is a Price Offer Letter and brief description of goods/services

3. Opening Paragraph: Professional greeting and reference to any prior communications or requests

4. Scope Description: Detailed description of goods/services being offered

5. Price Details: Clear breakdown of prices, including unit prices, quantities, and total amount

6. VAT Statement: Clear statement about VAT application (15%) and whether prices are inclusive or exclusive

7. Validity Period: Specific timeframe for which the offer remains valid

8. Payment Terms: Payment conditions, method, and timeline

9. Closing Statement: Professional closing with contact information for further queries