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Non Compete Non Circumvent Agreement for Saudi Arabia

Non Compete Non Circumvent Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that combines non-compete and non-circumvention provisions to protect business interests, confidential information, and commercial relationships. The document establishes restrictions on competitive activities and prevents direct business engagement with protected relationships, incorporating provisions compliant with Saudi Labor Law, Commercial Regulations, and Sharia principles. It includes specific temporal and geographical limitations, detailed obligations, and enforcement mechanisms suitable for the Saudi Arabian legal framework.

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Non Compete Non Circumvent Agreement

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What is a Non Compete Non Circumvent Agreement?

The Non-Compete Non-Circumvent Agreement is a crucial legal instrument in Saudi Arabian business operations, designed to protect legitimate business interests, trade secrets, and commercial relationships. This document is typically used when engaging with employees, business partners, or consultants who will have access to sensitive information or valuable business relationships. The agreement, governed by Saudi Arabian law and compliant with Sharia principles, combines two key protective elements: preventing competitive activities and prohibiting direct engagement with protected business relationships. It must include specific limitations on duration and geographical scope as required by Saudi Labor Law, while ensuring enforceability through clear definition of restricted activities and relationships.

What sections should be included in a Non Compete Non Circumvent Agreement?

1. Parties: Identification of all contracting parties, including full legal names, addresses, and registration details

2. Background: Context of the agreement, existing business relationship, and purpose of the restrictions

3. Definitions: Detailed definitions of key terms including Confidential Information, Restricted Business, Territory, and Restricted Period

4. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographical limitations

5. Non-Circumvention Obligations: Prohibition on bypassing or circumventing the other party in business dealings and relationships

6. Duration and Territory: Explicit timeframe and geographical scope of the restrictions

7. Confidentiality Obligations: Requirements regarding the protection and non-disclosure of confidential information

8. Permitted Activities: Clear outline of activities that are explicitly allowed despite the restrictions

9. Consideration: Details of any payment or consideration provided in exchange for the restrictions

10. Breach and Remedies: Consequences of breach and available remedies including injunctive relief

11. Governing Law and Jurisdiction: Specification of Saudi Arabian law as governing law and relevant jurisdiction

12. General Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Non Compete Non Circumvent Agreement?

1. Assignment and Succession: Include when the agreement needs to bind successors or if assignment rights need to be addressed

2. Specific Industry Restrictions: Add for agreements in regulated industries or sectors with specific compliance requirements

3. Third Party Rights: Include when the agreement affects or benefits specific third parties

4. Force Majeure: Add when long-term restrictions need force majeure provisions

5. Islamic Finance Compliance: Include when the agreement involves financial transactions that must comply with Islamic finance principles

6. Training and Trade Secrets: Add when the agreement relates to specific training provided or trade secrets shared

7. Post-Termination Obligations: Include when specific obligations continue after the main agreement terminates

What schedules should be included in a Non Compete Non Circumvent Agreement?

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by restrictions

2. Schedule 2 - Restricted Business Activities: Comprehensive list of prohibited business activities and sectors

3. Schedule 3 - Protected Relationships: List of specific clients, suppliers, or business relationships protected by non-circumvention

4. Schedule 4 - Consideration Details: Breakdown of any financial consideration or payment terms

5. Appendix A - Confidential Information: Detailed categorization of information considered confidential

6. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions






























Clauses




























Relevant Industries

Oil & Gas

Technology

Financial Services

Manufacturing

Healthcare

Construction

Real Estate

Telecommunications

Professional Services

Trading & Distribution

Defense & Security

Education

Renewable Energy

Mining

Hospitality

Relevant Teams

Executive Leadership

Business Development

Sales

Research & Development

Technical Operations

Product Development

Strategic Partnerships

Commercial Operations

Project Management

Client Relations

Legal & Compliance

Procurement

Innovation

Market Research

Strategic Planning

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Sales Director

Technical Consultant

Project Manager

Research & Development Director

Chief Technology Officer

Operations Manager

Strategic Partner Manager

Account Executive

Commercial Director

Regional Manager

Product Development Manager

Senior Consultant

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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