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Master Service Agreement for Saudi Arabia

Master Service Agreement Template for Saudi Arabia

A comprehensive legal framework document governed by Saudi Arabian law that establishes the general terms and conditions under which a service provider will provide services to a client over time. This agreement serves as an umbrella contract that sets forth the basic legal and commercial relationship between the parties, while specific services, deliverables, and commercial terms are typically detailed in subsequent service orders or statements of work. The document incorporates requirements of Saudi Arabian law, including Shariah principles, and addresses key aspects such as service delivery, payment terms, compliance requirements, and dispute resolution mechanisms in accordance with local jurisdiction.

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What is a Master Service Agreement?

The Master Service Agreement (MSA) is designed for use in the Saudi Arabian market where parties intend to establish a long-term service relationship but want flexibility in defining specific services over time. This document type is particularly important in the Saudi context as it must comply with both Shariah law principles and modern commercial requirements. The MSA provides the foundational legal framework while allowing parties to agree on specific services through separate service orders, making it ideal for ongoing business relationships. It includes essential elements such as service standards, pricing mechanisms, compliance with local regulations, and dispute resolution procedures aligned with Saudi law. The document is typically used when parties anticipate multiple service engagements over time and need a efficient way to manage their commercial relationship while ensuring consistency in fundamental terms.

What sections should be included in a Master Service Agreement?

1. Parties: Identification of the contracting parties with full legal names, commercial registration details, and authorized signatories

2. Background: Context of the agreement and general business relationship between the parties

3. Definitions: Detailed definitions of terms used throughout the agreement, including Arabic translations of key terms where necessary

4. Scope of Services: General framework for services to be provided under the agreement

5. Service Orders: Process for requesting, accepting, and executing specific services under the master agreement

6. Term and Termination: Duration of the agreement, renewal provisions, and termination rights

7. Pricing and Payment Terms: General pricing principles, payment terms, invoicing requirements, and VAT treatment

8. Performance Standards: Quality standards, KPIs, and service level requirements

9. Compliance with Laws: Obligation to comply with Saudi laws, including Shariah principles and specific regulations

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property Rights: Ownership and usage rights of IP developed or used in service delivery

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

13. Force Majeure: Events excusing performance, including definition acceptable under Saudi law

14. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts or arbitration

15. General Provisions: Standard boilerplate clauses adapted for Saudi law compliance

What sections are optional to include in a Master Service Agreement?

1. Personnel Requirements: Used when services involve deployment of personnel, including Saudization requirements

2. Data Protection: Required when services involve processing of personal or sensitive data

3. Insurance: Detailed insurance requirements for high-risk services

4. Business Continuity: Required for critical services or long-term arrangements

5. Anti-Corruption: Enhanced compliance provisions for government-related services

6. Environmental Compliance: Required for services with environmental impact

7. Security Requirements: For services involving access to sensitive facilities or systems

8. Import/Export Compliance: For services involving cross-border elements

9. Transition Services: Required for complex services requiring handover periods

What schedules should be included in a Master Service Agreement?

1. Schedule 1 - Service Descriptions: Detailed description of all potential services available under the agreement

2. Schedule 2 - Pricing Schedule: Detailed pricing models, rates, and commercial terms

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

4. Schedule 4 - Governance: Service management structure, reporting requirements, and escalation procedures

5. Schedule 5 - Technical Requirements: Technical specifications and standards for service delivery

6. Schedule 6 - Form of Service Order: Template for individual service orders under the master agreement

7. Schedule 7 - Key Personnel: Identification of key roles and responsibilities

8. Schedule 8 - Approved Subcontractors: List of pre-approved subcontractors if applicable

9. Appendix A - Contact Details: Key contact information for both parties

10. Appendix B - Required Documentation: List of required permits, certificates, and compliance documents

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




















































Clauses




















































Relevant Industries

Information Technology

Professional Services

Oil & Gas

Construction

Healthcare

Financial Services

Telecommunications

Manufacturing

Logistics

Consulting

Energy

Education

Real Estate

Mining

Retail

Relevant Teams

Legal

Procurement

Commercial

Finance

Operations

Compliance

Risk Management

Business Development

Contract Administration

Project Management

Account Management

Service Delivery

Senior Management

Strategy

Corporate Governance

Relevant Roles

Legal Counsel

Commercial Director

Procurement Manager

Contract Manager

Chief Financial Officer

Chief Executive Officer

Operations Director

Business Development Manager

Compliance Officer

Risk Manager

Project Manager

Account Manager

Service Delivery Manager

General Counsel

Commercial Operations 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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