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Business Development Contractor Agreement for Saudi Arabia

Business Development Contractor Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes and regulates the relationship between a company and an independent business development contractor. The document outlines the terms and conditions for business development services, including scope of work, compensation structure, performance metrics, and compliance requirements with Saudi regulations. It incorporates provisions for Shariah compliance and addresses specific requirements under Saudi commercial and agency laws, while ensuring proper contractor classification distinct from employment relationships.

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What is a Business Development Contractor Agreement?

The Business Development Contractor Agreement is essential for companies seeking to expand their business presence in Saudi Arabia through independent contractors rather than employees. This document is particularly relevant in the context of Saudi Arabia's Vision 2030 economic transformation program, which has created numerous business opportunities across various sectors. The agreement ensures compliance with Saudi Arabian laws, including commercial agency regulations, labor laws (for proper contractor classification), and Shariah principles. It typically includes detailed provisions for service scope, compensation, performance metrics, compliance requirements, and risk allocation, while addressing specific local market considerations and regulatory requirements. This type of agreement is commonly used when companies need flexible, results-driven business development support without establishing direct employment relationships.

What sections should be included in a Business Development Contractor Agreement?

1. Parties: Identification of the contracting parties including full legal names, addresses, and commercial registration details as required under Saudi law

2. Background: Context of the agreement and brief description of the business relationship

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

4. Appointment and Scope of Services: Clear delineation of the contractor's appointment and detailed scope of business development services

5. Term and Termination: Duration of the agreement, renewal terms, and termination provisions including notice periods

6. Compensation and Payment Terms: Details of fees, commission structures, expenses, and payment schedules

7. Independent Contractor Status: Clear statement of independent contractor relationship and distinction from employment

8. Obligations of the Contractor: Detailed responsibilities, performance standards, and reporting requirements

9. Client's Obligations: Support, information, and resources to be provided by the client

10. Intellectual Property Rights: Ownership and usage rights of intellectual property created during the engagement

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client/employee solicitation

13. Compliance with Laws: Obligation to comply with Saudi laws, including anti-corruption and commercial regulations

14. Liability and Indemnification: Allocation of risks and responsibilities between parties

15. Dispute Resolution: Process for resolving disputes under Saudi law, including jurisdiction and applicable courts

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

What sections are optional to include in a Business Development Contractor Agreement?

1. Performance Targets: Specific KPIs and performance metrics, used when quantifiable targets are part of the agreement

2. Territory Restrictions: Geographic limitations on business development activities, used for regional or targeted business development

3. Sub-contractor Rights: Rights and restrictions regarding the use of sub-contractors, included when sub-contracting may be necessary

4. Insurance Requirements: Specific insurance coverage requirements, included for high-risk or regulated industries

5. Marketing and Branding: Guidelines for using client's brand and marketing materials, included when contractor represents client publicly

6. Data Protection: Specific data handling and protection requirements, included when dealing with sensitive data

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

8. Shariah Compliance: Specific provisions ensuring compliance with Islamic law principles, included when explicitly required

What schedules should be included in a Business Development Contractor Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of business development services and deliverables

2. Schedule 2 - Compensation Structure: Detailed fee calculations, commission rates, and payment terms

3. Schedule 3 - Target Clients/Markets: List of approved target clients or markets for business development activities

4. Schedule 4 - Reporting Requirements: Ƶ and specifications for required reports and updates

5. Schedule 5 - Key Performance Indicators: Detailed metrics and evaluation criteria for performance assessment

6. Appendix A - Compliance Policies: Client's relevant compliance policies and procedures

7. Appendix B - Approved Marketing Materials: Pre-approved marketing materials and guidelines

8. Appendix C - Contact Details: Key contact persons and communication protocols

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions













































Clauses









































Relevant Industries

Technology

Healthcare

Construction

Manufacturing

Professional Services

Energy

Telecommunications

Financial Services

Education

Real Estate

Defense

Infrastructure

Retail

Hospitality

Consulting

Relevant Teams

Legal

Compliance

Business Development

Commercial

Operations

Finance

Human Resources

Risk Management

Strategy

Procurement

Sales

Relevant Roles

Business Development Manager

Legal Counsel

Compliance Officer

Commercial Director

Chief Executive Officer

Managing Director

Operations Manager

Contract Manager

Sales Director

Regional Manager

Strategy Director

Chief Commercial Officer

Business Development Contractor

Market Entry Specialist

Project 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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