Vendor Service Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Vendor Service Agreement

"I need a Vendor Service Agreement for an IT services provider who will manage our cloud infrastructure and provide cybersecurity services starting March 2025, with specific provisions for data protection and confidentiality under Saudi law."

Document background
The Vendor Service Agreement is a critical commercial document used to formalize service provision arrangements between vendors and clients in Saudi Arabia. This agreement type is essential for businesses operating in the Kingdom that need to establish clear, legally enforceable terms for service delivery while ensuring compliance with local laws and Sharia principles. The document covers crucial aspects including service scope, performance metrics, payment terms, compliance requirements, and risk allocation. It's particularly important in the Saudi context due to specific regulatory requirements such as Saudization policies, commercial agency laws, and Islamic financial principles. The agreement should be structured to protect both parties' interests while maintaining alignment with Saudi commercial practices and legal frameworks.
Suggested Sections

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

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Scope of Services: Detailed description of services to be provided by the vendor

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

6. Vendor Obligations: Key responsibilities and commitments of the vendor

7. Client Obligations: Key responsibilities and commitments of the client

8. Fees and Payment Terms: Payment structure, amounts, and Sharia-compliant payment terms

9. Service Levels: Performance standards and metrics for service delivery

10. Compliance with Laws: Obligation to comply with Saudi laws, regulations, and Sharia principles

11. Confidentiality: Protection of confidential information and trade secrets

12. Intellectual Property: Ownership and usage rights of IP created or used during service provision

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Force Majeure: Provisions for unforeseen circumstances preventing performance

15. Termination: Grounds and procedures for ending the agreement

16. Dispute Resolution: Procedures for resolving disputes under Saudi law

17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Insurance: Required when services involve physical presence or significant risks

2. Data Protection: Required when services involve processing personal or sensitive data

3. Anti-Corruption: Recommended when dealing with government entities or high-value contracts

4. Import/Export Compliance: Required when services involve cross-border elements

5. Saudization Requirements: Required when services involve local staffing or workforce requirements

6. Business Continuity: Recommended for critical services or long-term arrangements

7. Environmental Compliance: Required for services with environmental impact

8. Security Requirements: Required when services involve access to sensitive facilities or systems

9. Transition Services: Required for complex services requiring handover periods

Suggested Schedules

1. Schedule 1 - Service Specifications: Detailed description of services, deliverables, and technical requirements

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and remedies

3. Schedule 3 - Fees and Payment Schedule: Detailed breakdown of fees, payment milestones, and calculation methods

4. Schedule 4 - Key Personnel: List of key personnel from both parties responsible for service delivery

5. Schedule 5 - Technical Requirements: Specific technical standards, systems, or protocols required

6. Schedule 6 - Form of Reports: Templates and requirements for service reporting

7. Schedule 7 - Change Control Procedure: Process for managing changes to services or terms

8. Appendix A - Required Insurances: Details of insurance types and coverage levels required

9. Appendix B - Security Policies: Relevant security procedures and requirements

10. Appendix C - Acceptance Testing Procedures: Procedures for accepting deliverables or services

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Professional Services

Construction

Healthcare

Energy and Utilities

Telecommunications

Financial Services

Retail

Logistics and Transportation

Education

Facilities Management

Oil and Gas

Defense and Security

Relevant Teams

Legal

Procurement

Finance

Operations

Risk and Compliance

Supply Chain

Commercial

Information Technology

Project Management

Vendor Management

Business Development

Relevant Roles

Procurement Manager

Legal Counsel

Contract Manager

Vendor Relations Manager

Chief Financial Officer

Operations Director

Risk Manager

Compliance Officer

Supply Chain Manager

Project Manager

Commercial Director

Chief Technology Officer

General Counsel

Business Development Manager

Finance Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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