Vendor Services Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Vendor Services Agreement

"I need a Vendor Services Agreement for a Saudi-based technology company engaging a foreign cloud services provider, with specific focus on data protection compliance and service level agreements, planned to commence in March 2025."

Document background
The Vendor Services Agreement is a crucial commercial document used in Saudi Arabia when engaging external service providers for business operations. This agreement type is essential for companies operating in the Kingdom who need to formalize relationships with vendors while ensuring compliance with local laws, including Sharia principles and Saudi commercial regulations. The document typically covers service scope, performance metrics, payment terms, compliance requirements, and risk allocation, while incorporating necessary provisions for operating in Saudi Arabia such as Saudization requirements and local regulatory approvals. It's particularly important in the context of Vision 2030's economic reforms and increased focus on vendor governance and transparency in commercial relationships.
Suggested Sections

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

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

3. Definitions: Key terms used throughout the agreement, including specific Saudi regulatory terms

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

5. Term and Renewal: Duration of the agreement and conditions for renewal

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

7. Vendor Obligations: Key responsibilities and commitments of the vendor, including compliance with Saudi regulations

8. Client Obligations: Responsibilities of the client, including provision of necessary information and access

9. Compliance with Laws: Obligation to comply with Saudi laws, including Sharia principles and specific industry regulations

10. Confidentiality: Protection of confidential information and trade secrets

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

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

13. Force Majeure: Events excusing performance, adapted to Saudi law context

14. Termination: Grounds for termination, notice requirements, and consequences

15. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts or arbitration

16. Governing Law: Explicit reference to Saudi law and Sharia principles

17. Notices: Format and method of delivering official communications

18. General Provisions: Standard boilerplate clauses including assignment, amendments, and entire agreement

Optional Sections

1. Insurance: Required when services involve specific risks requiring insurance coverage

2. Data Protection: Required when personal data processing is involved, addressing Saudi data protection requirements

3. Security Requirements: Needed for services involving access to sensitive systems or information

4. Change Control: Recommended for complex services where scope changes are likely

5. Business Continuity: Important for critical services requiring disaster recovery planning

6. Anti-Corruption: Required for high-value contracts or government-related services

7. Localization Requirements: Needed when addressing Saudi Arabization (Saudization) requirements

8. Environmental Compliance: Required for services with environmental impact

9. Subcontracting: Needed when vendor may need to engage subcontractors

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

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specifications of services, deliverables, and performance metrics

2. Schedule 2 - Pricing and Payment: Detailed fee structure, payment milestones, and commercial terms

3. Schedule 3 - Service Levels: Performance standards, KPIs, and measurement methodology

4. Schedule 4 - Personnel: Key personnel requirements, qualifications, and replacement procedures

5. Schedule 5 - Technical Requirements: Technical specifications and standards for service delivery

6. Schedule 6 - Compliance Requirements: Specific regulatory and compliance requirements applicable to the services

7. Schedule 7 - Form of Reports: Templates and requirements for regular reporting

8. Schedule 8 - Exit Plan: Procedures for service transition upon contract termination

9. Appendix A - Contact Details: Key contact information for both parties

10. Appendix B - Required Documents: List of mandatory permits, certificates, and regulatory documents

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

Oil & Gas

Technology

Construction

Healthcare

Financial Services

Telecommunications

Manufacturing

Retail

Professional Services

Education

Transportation & Logistics

Defense & Security

Real Estate

Energy & Utilities

Entertainment & Tourism

Relevant Teams

Legal

Procurement

Finance

Operations

Compliance

Risk Management

Supply Chain

Commercial

Project Management

Vendor Management

Internal Audit

Business Development

Strategy

Relevant Roles

Chief Procurement Officer

Legal Counsel

Procurement Manager

Contract Manager

Commercial Director

Chief Financial Officer

Operations Manager

Compliance Officer

Risk Manager

Project Manager

Supply Chain Manager

Vendor Relationship Manager

Chief Legal Officer

Business Unit Director

Chief Operations Officer

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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