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Service Agreement for Saudi Arabia

Service Agreement Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that establishes the terms and conditions under which one party (the Service Provider) agrees to provide specific services to another party (the Service Recipient). The agreement incorporates requirements from Saudi Labor Law, Commercial Courts Law, and relevant sector-specific regulations while ensuring compliance with Sharia principles. It details service scope, performance standards, payment terms, compliance requirements, and dispute resolution mechanisms specific to the Saudi Arabian jurisdiction, including considerations for VAT at 15% and local commercial practices.

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What is a Service Agreement?

The Service Agreement is a fundamental commercial contract used in Saudi Arabia to formalize service provision arrangements between businesses. It is essential for companies operating in the Kingdom to use this document type to ensure their service relationships are properly documented and enforceable under Saudi law. The agreement must comply with both Sharia principles and Saudi regulations, including the Commercial Courts Law and sector-specific requirements. This document type is particularly important given Saudi Arabia's growing service economy and the increasing need for well-structured commercial relationships in the context of Vision 2030. The Service Agreement typically includes detailed provisions for service scope, performance standards, payment terms, and dispute resolution mechanisms, while addressing specific Saudi Arabian requirements such as commercial registration requirements, local sponsorship (where applicable), and VAT considerations.

What sections should be included in a Service Agreement?

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

2. Background: Context of the agreement, brief description of the parties' business activities, and purpose of the service arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

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

5. Term and Duration: Period of the agreement, including start date, duration, and renewal provisions

6. Fees and Payment Terms: Service fees, payment schedule, invoicing requirements, and VAT treatment

7. Service Provider's Obligations: Detailed responsibilities and commitments of the service provider

8. Service Recipient's Obligations: Responsibilities and commitments of the service recipient, including cooperation and access requirements

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

10. Confidentiality: Protection of confidential information and trade secrets

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

12. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification obligations

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. Force Majeure: Events excusing performance and procedures for handling force majeure situations

15. Governing Law and Dispute Resolution: Specification of Saudi law as governing law and dispute resolution mechanisms

16. Notices: Methods and addresses for formal communications between parties

17. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability

What sections are optional to include in a Service Agreement?

1. Service Levels: Detailed performance metrics and service level requirements, used when specific performance standards need to be measured and maintained

2. Insurance: Insurance requirements and coverage obligations, particularly relevant for high-risk services

3. Data Protection: Specific provisions for handling personal data, required when services involve data processing

4. Non-Competition: Restrictions on competitive activities, relevant when service provider has access to sensitive business information

5. Training and Support: Details of training and ongoing support requirements, important for technical or specialized services

6. Transition Services: Provisions for handover or transition of services, relevant for complex or long-term service arrangements

7. Security Requirements: Specific security protocols and requirements, necessary for services involving sensitive information or facilities access

8. Change Control: Procedures for managing changes to services or terms, important for long-term or complex service arrangements

9. Warranties: Specific warranties beyond standard obligations, used when particular assurances are required

10. Key Personnel: Identification and requirements for key service delivery personnel, important when specific expertise is crucial

What schedules should be included in a Service Agreement?

1. Schedule 1 - Service Description: Detailed technical specifications and scope of services

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Specific performance metrics, measurement methods, and remedies

4. Schedule 4 - Contact Details: Key personnel and contact information for both parties

5. Schedule 5 - Required Documentation: List of permits, licenses, and documentation required for service delivery

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

7. Appendix A - Form of Reports: Templates for required service reports and documentation

8. Appendix B - Security Protocols: Detailed security procedures and requirements

9. Appendix C - Change Request Form: Standard form for requesting and documenting service changes

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions







































Clauses















































Relevant Industries

Information Technology

Professional Services

Construction

Healthcare

Education

Facilities Management

Telecommunications

Financial Services

Oil & Gas

Manufacturing

Logistics

Consulting

Real Estate

Hospitality

Relevant Teams

Legal

Procurement

Operations

Commercial

Finance

Compliance

Risk Management

Project Management

Business Development

Account Management

Service Delivery

Administration

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Commercial Director

Operations Manager

Business Development Manager

Compliance Officer

Risk Manager

Project Manager

Finance Director

General Manager

Chief Executive Officer

Chief Operating Officer

Facility Manager

Service Delivery Manager

Account Manager

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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