Document background
The Shareholders Agreement Joint Venture is a crucial document used when two or more parties wish to establish a joint business venture in Saudi Arabia. It's particularly relevant in the context of Saudi Vision 2030, which encourages foreign investment and private sector participation in the Kingdom's economy. The agreement addresses key aspects such as corporate governance, capital structure, management control, profit distribution, and exit mechanisms, while ensuring compliance with Saudi Companies Law and Shariah principles. It's especially important for foreign investors entering the Saudi market, as it provides clear frameworks for partnership with local entities and addresses specific requirements under Saudi foreign investment regulations. The document typically includes detailed provisions for board composition, reserved matters, share transfer restrictions, and dispute resolution mechanisms tailored to the Saudi legal environment.
