Real Estate Joint Venture Agreement Template for Saudi Arabia

The Real Estate Joint Venture Agreement is a crucial document used when two or more parties wish to collaborate on real estate development projects in Saudi Arabia. It is particularly relevant in the context of Saudi Vision 2030's emphasis on real estate development and foreign investment in the sector. The agreement must comply with various Saudi regulations including the Real Estate Law (Royal Decree No. M/50), Foreign Investment Law, and Companies Law, while maintaining Sharia compliance. This document typically structures the relationship between developers, investors, and/or landowners, detailing their respective rights, obligations, capital contributions, and profit-sharing arrangements. It is essential for large-scale development projects, mixed-use developments, and commercial real estate ventures in Saudi Arabia, particularly when involving international investors or developers partnering with local entities.

1. Parties: Identification of the joint venture partners, including their full legal names, addresses, and registration details

2. Background: Context of the joint venture, including the purpose, objectives, and brief description of the real estate project

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Sharia Compliance Declaration: Statement confirming the agreement's compliance with Islamic law principles

5. Formation of Joint Venture: Legal structure, name, and registration requirements of the joint venture

6. Capital Contributions: Details of initial and future capital contributions, including land, cash, and other assets

7. Ownership and Shareholding: Specification of ownership percentages and share distribution

8. Project Scope: Detailed description of the real estate project, including location, type, and development plans

9. Management and Control: Governance structure, management appointments, and decision-making processes

10. Financial Matters: Financial management, profit distribution, and loss sharing arrangements

11. Development and Construction: Construction responsibilities, timelines, and quality standards

12. Regulatory Compliance: Compliance with Saudi real estate laws, permits, and regulatory requirements

13. Representations and Warranties: Standard and specific warranties from each party

14. Term and Termination: Duration of the joint venture and termination provisions

15. Dispute Resolution: Dispute resolution mechanisms compliant with Saudi law

16. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law