Business Service Agreement

Business Service Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

"I need a Business Service Agreement for my IT consulting company based in Riyadh to provide cloud migration and cybersecurity services to a government-owned enterprise, with service commencement planned for March 2025 and specific provisions for data protection and security clearance requirements."

Document background

The Business Service Agreement is a fundamental commercial contract used when establishing a formal relationship between a service provider and a client in Saudi Arabia. This document is essential for businesses operating in the Kingdom, whether local or international, that need to formalize their service arrangements while ensuring compliance with Saudi law and Sharia principles. The agreement covers crucial aspects including service scope, performance metrics, payment terms, and regulatory compliance requirements. It is particularly important given Saudi Arabia's evolving business landscape under Vision 2030 and the increasing focus on service sector development. The document addresses specific Saudi regulatory requirements, including commercial registration obligations, local content requirements, and relevant sector-specific regulations.

Suggested Sections

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

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

3. Definitions: Detailed definitions of 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 Termination: Duration of the agreement, renewal terms, and conditions for termination

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

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

8. Client's Obligations: Responsibilities and commitments of the client, including provision of necessary information and access

9. Confidentiality: Provisions for protecting confidential information and trade secrets

10. Intellectual Property Rights: Ownership and usage rights of intellectual property

11. Compliance with Laws: Commitment to comply with Saudi laws, regulations, and Sharia principles

12. Liability and Indemnification: Limitations of liability and indemnification obligations

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Dispute Resolution: Procedures for resolving disputes under Saudi law, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Data Protection: Required when services involve processing personal data or storing sensitive information

2. Service Levels: Needed when specific performance metrics and standards are crucial to the service

3. Insurance: Required when services involve significant risks or regulatory requirements for insurance

4. Anti-Corruption: Important when dealing with government entities or high-value contracts

5. Delegation and Subcontracting: Needed when service provider may need to subcontract certain services

6. Training and Support: Required when service includes training or ongoing support components

7. Transition Services: Important when service termination requires specific handover procedures

8. Shariah Compliance: Required when services involve financial transactions or need explicit Shariah compliance

9. Export Control: Needed when services involve cross-border elements or technology transfer

Suggested Schedules

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

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

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

4. Personnel Schedule: Key personnel, qualifications, and replacement procedures

5. Technical Requirements: Specific technical standards and requirements for service delivery

6. Security Requirements: Security protocols and compliance requirements

7. Data Processing Agreement: Specific terms for handling personal and sensitive data

8. Business Continuity Plan: Procedures for maintaining service during disruptions

9. Exit Management Plan: Procedures for service termination and transition

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Information Technology

Professional Services

Consulting

Financial Services

Healthcare

Construction

Engineering

Telecommunications

Facilities Management

Education

Manufacturing

Logistics

Oil and Gas

Real Estate

Retail

Relevant Teams

Legal

Compliance

Procurement

Operations

Finance

Risk Management

Commercial

Business Development

Project Management

Account Management

Service Delivery

Quality Assurance

Internal Audit

Corporate Governance

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Legal Counsel

Compliance Officer

Procurement Manager

Contract Manager

Business Development Manager

Operations Director

Project Manager

Finance Director

Risk Manager

Commercial Director

General Manager

Account Manager

Service Delivery Manager

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