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A Relationship Agreement sets out the rights and duties between business partners in Saudi Arabia, going beyond standard contracts to define how parties will work together long-term. It covers key aspects like decision-making processes, profit sharing, and dispute resolution methods that align with Shariah principles and Saudi commercial law.

Companies often use these agreements when forming joint ventures or strategic partnerships under the Kingdom's Foreign Investment Law. The document helps prevent future conflicts by clearly stating each party's roles, confidentiality obligations, and exit procedures - making it especially valuable for international business relationships in the Saudi market.

Consider implementing a Relationship Agreement when entering any significant business partnership in Saudi Arabia, especially for joint ventures, strategic alliances, or long-term collaborations. This document becomes essential before committing substantial resources or sharing sensitive information with potential partners.

The timing is crucial - put the agreement in place during early partnership discussions, but before major operational integration begins. It's particularly valuable when dealing with international partners, family businesses, or complex multi-party ventures where Saudi commercial law and Shariah compliance need careful consideration. Many companies use it alongside their initial MOU or term sheet.

• Business Relationship Agreement: Core template for commercial partnerships, covering profit sharing and operational control under Saudi commercial law
• Business Relationship Contract: Detailed version focusing on specific performance metrics and exit strategies for complex joint ventures
• Domestic Relationship Agreement: Structured for family businesses, addressing succession planning and Shariah-compliant wealth distribution
• Consensual Relationship Contract: Used for informal business partnerships, outlining basic terms while maintaining flexibility

• Joint Venture Partners: Foreign and local companies using Relationship Agreements to structure their Saudi business partnerships
• Legal Counsel: Saudi-licensed attorneys drafting and reviewing agreements to ensure Shariah compliance and SAGIA regulations
• Family Business Owners: Establishing governance frameworks for multi-generational enterprises and succession planning
• Corporate Officers: CEOs and board members implementing strategic partnership terms and monitoring compliance
• Investment Authorities: Government bodies reviewing agreements for foreign investment approval and regulatory compliance

• Partner Details: Gather complete business information, commercial registration numbers, and authorized signatories for all parties
• Business Scope: Define partnership objectives, operational boundaries, and resource commitments clearly
• Governance Structure: Outline decision-making processes, voting rights, and management roles under Saudi law
• Financial Terms: Document profit-sharing ratios, capital contributions, and Shariah-compliant financial arrangements
• Compliance Check: Use our platform to generate a legally-sound agreement that meets SAGIA requirements and local regulations
• Review Process: Ensure all parties understand and agree to terms before finalizing the document

• Party Identification: Full legal names, commercial registration numbers, and authorized representative details
• Scope Definition: Clear description of partnership objectives and limitations under Shariah principles
• Financial Terms: Profit-sharing ratios, capital contributions, and Islamic finance compliance statements
• Governance Structure: Decision-making processes aligned with Saudi Companies Law requirements
• Dispute Resolution: Saudi arbitration procedures and applicable jurisdiction clauses
• Term and Termination: Duration, renewal conditions, and exit mechanisms
• Confidentiality: Data protection measures meeting SAMA guidelines
• Attestation Block: Arabic and English signature sections with official stamps

A Relationship Agreement differs significantly from an Agency Agreement in several key aspects under Saudi law. While both documents govern business relationships, their scope and legal implications vary considerably.

• Purpose and Scope: Relationship Agreements establish long-term partnership frameworks between equal parties, while Agency Agreements create principal-agent relationships with clear hierarchical structures
• Legal Authority: Agency Agreements grant specific powers of representation under Saudi Commercial Agencies Law, whereas Relationship Agreements focus on mutual obligations and shared decision-making
• Duration and Flexibility: Relationship Agreements typically offer more flexible terms and collaborative structures, while Agency Agreements must follow strict SAGIA regulations for commercial agency relationships
• Risk Distribution: Agency Agreements place most liability on the principal, while Relationship Agreements usually distribute risks more evenly between partners