Third Party Authorization Letter Template for Saudi Arabia

A Third Party Authorization Letter under Saudi Arabian law is a formal document that grants specific powers and authorities from one party (the authorizer) to another party (the authorized representative). This document must comply with Saudi Arabian legal requirements, including proper authentication and notarization as per local regulations. The letter explicitly outlines the scope of authority being granted, the duration of the authorization, and any limitations or conditions attached to the delegation of powers. It serves as a legally binding instrument that enables the authorized party to act on behalf of the authorizing party for specified purposes, whether for business transactions, governmental procedures, or other legally permitted activities.

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What is a Third Party Authorization Letter?

The Third Party Authorization Letter is a crucial legal instrument in Saudi Arabia used when an individual or entity needs to delegate specific powers or authorities to another party. This document is commonly required for various business and personal transactions where direct representation is not possible or practical. It must be drafted in compliance with Saudi Arabian law, which typically requires official authentication and may need to be in Arabic or accompanied by a certified Arabic translation. The letter should clearly specify the scope of authority, duration, and any limitations to prevent misuse. Common uses include representing companies in government transactions, handling banking matters, managing real estate dealings, or conducting specific business operations. The document's validity and acceptance are subject to Saudi Arabian legal requirements, including proper identification of all parties and official notarization where required.

What sections should be included in a Third Party Authorization Letter?

1. Date and Place: The date of execution and the city/country where the letter is being issued

2. Authorizing Party Details: Full legal name, address, and identification details (ID/Iqama number) of the person/entity granting the authorization

3. Authorized Party Details: Full legal name, address, and identification details (ID/Iqama number) of the person/entity being granted the authorization

4. Purpose Statement: Clear statement of the purpose for which the authorization is being granted

5. Scope of Authority: Detailed description of the specific powers and authorities being granted

6. Duration: The period for which the authorization is valid, including start and end dates

7. Execution Block: Signature blocks for the authorizing party, with space for official authentication/notarization

What sections are optional to include in a Third Party Authorization Letter?

1. Revocation Rights: Statement regarding the right to revoke the authorization and the process for doing so - included when the authorization is for an extended period

2. Sub-delegation Authority: Whether the authorized party can delegate their authority to others - included when relevant to the scope of authorization

3. Governing Law Statement: Explicit statement about Saudi law governance - included for international contexts

4. Language Preference: Statement about prevailing language if the document is bilingual - included when document is in multiple languages

5. Compensation Terms: Details of any payment or compensation - included when the authorized party is to be compensated

6. Liability Limitations: Limitations on the authorized party's liability - included for complex authorizations

What schedules should be included in a Third Party Authorization Letter?

1. Copy of Authorizing Party's ID: Authenticated copy of the authorizing party's national ID or Iqama

2. Copy of Authorized Party's ID: Authenticated copy of the authorized party's national ID or Iqama

3. List of Specific Powers: Detailed enumeration of specific actions or transactions authorized - used when the scope is complex

4. Corporate Authorization: If the authorizing party is a company, documentation proving the signatory's authority to issue the authorization

5. Arabic Translation: Certified Arabic translation if the original is in another language

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Saudi Arabia

Publisher

GenieAI

Document Type

Sector

Banking

Cost

Free to use

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