Document background
The Product Supply Contract serves as a fundamental commercial agreement for businesses operating in Saudi Arabia that are engaged in the purchase and supply of products. This document is essential when establishing a formal supply relationship between parties, whether domestic or international, and must comply with both Sharia law principles and Saudi commercial regulations. It is particularly important for transactions requiring detailed product specifications, quality standards, and delivery terms. The contract addresses key aspects such as SASO compliance, commercial agency requirements, customs regulations, and VAT implications. It's commonly used in both one-time large-scale purchases and ongoing supply relationships, providing a legally robust framework that protects both parties' interests while ensuring adherence to local legal requirements and business practices.
