Senior Advisor Agreement Template for Saudi Arabia

A Senior Advisor Agreement is an essential legal contract that formalizes the relationship between your Saudi company and external advisory expertise. This document ensures compliance with Saudi Arabian employment and commercial laws while protecting your business interests and establishing clear expectations for high-level consultative services.

When do you need this document?

You need a Senior Advisor Agreement when engaging experienced professionals to provide strategic guidance, industry expertise, or specialized knowledge to your Saudi entity. This applies when hiring former executives, industry veterans, or subject matter experts who will advise on business strategy, market expansion, regulatory compliance, or technical matters. The agreement is particularly crucial when working with international advisors or when the advisory role involves access to sensitive business information, board-level discussions, or strategic decision-making processes. You also need this document when the advisory relationship extends beyond casual consultation and involves regular engagement, specific deliverables, or ongoing strategic input.

Key legal considerations

Your Senior Advisor Agreement must clearly distinguish between employment and advisory relationships to avoid unintended labor law obligations under Saudi Labor Law. The scope of services section should precisely define advisory duties, deliverables, and performance expectations to prevent disputes. Compensation structures must comply with VAT Law requirements, including proper invoicing and tax treatment of advisory fees. Confidentiality and non-disclosure provisions are critical given advisors' access to strategic information, trade secrets, and business plans. The agreement should include robust intellectual property clauses addressing ownership of recommendations, reports, and strategic insights developed during the advisory period. Termination provisions must be carefully drafted to allow flexibility while protecting both parties' interests, including notice periods and transition arrangements.

Legal requirements in Saudi Arabia

Under Saudi Labor Law (Royal Decree No. M/51), your agreement must clearly establish that the advisor is not an employee to avoid mandatory benefits, end-of-service payments, and other employment obligations. The Commercial Law (Royal Decree No. M/32) governs the contractual framework and commercial aspects of advisory services. If your advisor provides services regularly, you may need to consider GOSI Law implications for social insurance coverage, particularly for Saudi nationals or long-term residents. VAT Law compliance is mandatory for advisory fees, requiring proper documentation and tax treatment. The Anti-Commercial Concealment Law ensures your advisor arrangement doesn't violate fronting regulations, particularly important when engaging foreign advisors. Your agreement must include proper dispute resolution mechanisms, typically through Saudi courts or approved arbitration centers, and ensure all terms comply with Saudi commercial regulations and Sharia law principles governing contractual relationships.