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The Asset Management Contract is a fundamental document used when establishing a professional investment management relationship in Saudi Arabia. It is required when a licensed asset manager takes responsibility for managing client assets, whether for institutional investors, high-net-worth individuals, or corporate entities. The document must comply with Capital Market Authority regulations and Sharia principles, making it distinct from conventional asset management agreements in other jurisdictions. It typically includes comprehensive details about investment strategies, risk parameters, fee structures, and reporting requirements, while incorporating specific provisions for Islamic financial principles and local regulatory requirements. This contract is essential for any entity providing asset management services in Saudi Arabia and forms the basis of the client-manager relationship.

1. Parties: Identification of the Asset Manager and the Client, including regulatory status and contact details

2. Background: Context of the agreement and brief description of the services to be provided

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

4. Appointment and Scope: Formal appointment of the asset manager and detailed scope of services

5. Sharia Compliance: Commitment to Sharia principles and compliance requirements

6. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any restrictions

7. Powers and Duties of the Asset Manager: Detailed responsibilities and authority of the asset manager

8. Client's Obligations: Responsibilities and obligations of the client

9. Fees and Expenses: Management fees, performance fees, and other charges

10. Reporting and Valuations: Reporting obligations, frequency, and valuation methodology

11. Risk Disclosures: Mandatory risk warnings and disclosures

12. Conflicts of Interest: Management of potential conflicts and disclosure requirements

13. Confidentiality: Confidentiality obligations and permitted disclosures

14. Term and Termination: Duration of agreement and termination provisions

15. Representations and Warranties: Standard representations and warranties from both parties

16. Liability and Indemnification: Limitation of liability and indemnification provisions

17. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction provisions