Supply Of Services Agreement Template for Saudi Arabia

The Supply Of Services Agreement is essential for businesses operating in Saudi Arabia that engage external service providers or offer services to clients. This document is particularly crucial given the kingdom's unique legal framework, which combines modern commercial law with Shariah principles. It should be used whenever a formal arrangement for service provision is required, whether for one-time projects or ongoing services. The agreement covers critical elements including detailed service descriptions, performance metrics, payment structures compliant with Saudi tax regulations, risk allocation, and dispute resolution mechanisms aligned with the Saudi judicial system. It's especially relevant given Saudi Arabia's Vision 2030 initiatives, which have increased focus on service sector development and regulatory compliance.

1. Parties: Identification of the service provider and recipient, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including Arabic translations where necessary

4. Scope of Services: Detailed description of services to be provided, including service levels and performance standards

5. Term and Commencement: Duration of the agreement and conditions for effectiveness

6. Payment Terms: Fees, payment schedule, invoicing requirements, and VAT considerations

7. Service Provider Obligations: Key responsibilities and warranties of the service provider

8. Client Obligations: Responsibilities and commitments of the client

9. Compliance with Laws: Obligation to comply with Saudi laws, including Shariah principles

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Ownership and usage rights of IP created during service provision

12. Liability and Indemnification: Limitation of liability and indemnification obligations

13. Force Majeure: Events excusing performance, including reference to Saudi force majeure principles

14. Termination: Grounds for termination and consequences

15. Dispute Resolution: Process for resolving disputes under Saudi law

16. Governing Law: Confirmation of Saudi law and Shariah principles as governing law

17. Notices: Communication procedures between parties

18. General Provisions: Standard boilerplate clauses adapted for Saudi law