Document background
A Share Sale Agreement is a fundamental document used in corporate transactions in Saudi Arabia when transferring ownership of shares in a company. This agreement is essential for both private and public company transactions, though different regulatory requirements may apply depending on the company type. The document must comply with Saudi Arabian Companies Law, Capital Market Authority regulations (for listed companies), and Sharia principles. A Share Sale Agreement typically includes detailed provisions on the sale price, payment terms, warranties, representations, conditions precedent, and completion mechanics. It's particularly important to consider Saudi-specific requirements such as Ministry of Commerce approvals, foreign ownership restrictions, and Zakat/tax implications. The agreement serves as the primary transaction document and often forms part of a larger suite of documents in more complex corporate restructurings or acquisitions.
