Vessel Management Agreement Template for Saudi Arabia

The Vessel Management Agreement is a crucial document used when a vessel owner wishes to delegate the management and operation of their vessel to a professional management company in Saudi Arabia. This agreement is particularly important in the context of Saudi Arabia's growing maritime sector and Vision 2030 initiatives. It covers essential aspects such as technical management, crewing, maintenance, compliance with local and international regulations, and commercial operations. The document must align with Saudi Arabian maritime laws, including the Commercial Maritime Law (Royal Decree No. M/33) and relevant Sharia law principles. It's commonly used by shipping companies, vessel owners, and management companies operating in Saudi waters or under Saudi jurisdiction, providing a clear framework for the professional management of vessels while ensuring compliance with local regulatory requirements.

1. Parties: Identification of the vessel owner and the vessel management company, including full legal names and addresses

2. Background: Context of the agreement, including vessel details and the parties' intention to enter into a management arrangement

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

4. Appointment and Duration: Scope of manager's appointment, commencement date, and duration of the agreement

5. Manager's Authority and Responsibilities: Detailed outline of the manager's duties, including technical management, crewing, commercial operations, and maintenance

6. Owner's Responsibilities: Obligations of the vessel owner, including provision of documentation and cooperation requirements

7. Compliance and Regulations: Obligations to comply with relevant laws, regulations, and maritime standards

8. Financial Arrangements: Management fees, payment terms, and operational cost handling

9. Budgets and Expenses: Process for budget approval and handling of vessel operating expenses

10. Insurance: Required insurance coverage and responsibilities for maintaining insurance

11. Liability and Indemnity: Allocation of risks and responsibilities between parties

12. Force Majeure: Events constituting force majeure and their consequences

13. Termination: Grounds for termination and the process thereof

14. Confidentiality: Protection of confidential information and trade secrets

15. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement