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Incorporated Joint Venture Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Incorporated Joint Venture Agreement

"I need an Incorporated Joint Venture Agreement for a Saudi-Japanese manufacturing partnership to be established in March 2025, where the Saudi partner will hold 51% ownership and the Japanese partner will provide technical expertise in automotive parts manufacturing."

Document background
The Incorporated Joint Venture Agreement is a crucial document used when parties wish to establish a formal joint venture company in Saudi Arabia as a separate legal entity. This type of agreement is particularly relevant in the context of Saudi Vision 2030, which encourages foreign investment and private sector participation in the Kingdom's economy. The document must comply with Saudi Companies Law, Foreign Investment Law, and other relevant regulations, making it more complex than similar agreements in other jurisdictions. It's commonly used when foreign companies enter the Saudi market with local partners, when implementing major infrastructure or industrial projects, or when combining complementary capabilities of different organizations. The agreement typically includes detailed provisions for corporate governance, capital requirements, management control, profit sharing, and exit mechanisms, all structured to meet Saudi legal requirements while protecting the interests of all parties involved.
Suggested Sections

1. Parties: Identification of the JV partners, including full legal names and registration details

2. Background: Context of the JV formation, objectives, and brief description of each party's contribution

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Formation of the Joint Venture Company: Details of company formation, structure, and registration requirements under Saudi law

5. Capital Structure and Funding: Share capital, shareholding percentages, and additional funding mechanisms

6. Corporate Governance: Board composition, voting rights, reserved matters, and management structure

7. Business of the JV Company: Scope of business activities, business plan, and operational parameters

8. Shareholder Obligations: Commitments and obligations of each shareholder, including capital contributions and support

9. Share Transfer Restrictions: Limitations on share transfers, pre-emptive rights, and tag-along/drag-along rights

10. Dividend Policy: Rules for profit distribution and dividend declarations

11. Deadlock Resolution: Procedures for resolving management deadlocks and serious disagreements

12. Term and Termination: Duration of the JV and circumstances for termination

13. Exit Provisions: Mechanisms for shareholder exit, including put and call options

14. Confidentiality: Protection of confidential information and trade secrets

15. Governing Law and Dispute Resolution: Saudi law as governing law and dispute resolution mechanisms

Optional Sections

1. Intellectual Property Rights: Required if any IP is being contributed to or developed by the JV

2. Non-Competition: Include if parties agree to restrict competitive activities

3. Employee Matters: Needed if specific arrangements for employee transfers or secondments are required

4. Shariah Compliance: Detailed section required if JV will engage in financial activities or require specific Shariah compliance

5. Technology Transfer: Include if technology transfer is a key component of the JV

6. Local Content Requirements: Required if JV operates in sectors with specific Saudi localization requirements

7. Environmental Compliance: Include for JVs in industries with significant environmental impact

8. Government Relations: Needed if JV requires specific government approvals or ongoing regulatory compliance

Suggested Schedules

1. Schedule 1 - Business Plan: Detailed business plan including financial projections and operational strategies

2. Schedule 2 - Capital Contributions: Detailed breakdown of each party's capital contributions (cash and in-kind)

3. Schedule 3 - Articles of Association: Draft Articles of Association compliant with Saudi Companies Law

4. Schedule 4 - Reserved Matters: List of decisions requiring special approval majorities

5. Schedule 5 - Initial Officers: List of initial directors, officers, and key employees

6. Schedule 6 - Completion Requirements: Checklist of requirements for completing the JV formation

7. Schedule 7 - Warranties: Detailed warranties given by each party

8. Schedule 8 - Technical Services Agreement: Terms of technical support if applicable

9. Schedule 9 - License Agreements: Any IP or technology licenses granted to the JV

10. Schedule 10 - Key Performance Indicators: Agreed performance metrics for the JV

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

Relevant legal definitions





























































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Relevant Industries

Oil & Gas

Manufacturing

Construction

Technology

Healthcare

Financial Services

Real Estate Development

Renewable Energy

Mining

Petrochemicals

Defense

Tourism

Transportation & Logistics

Education

Retail

Relevant Teams

Legal

Corporate Development

Finance

Strategy

Business Development

Compliance

Risk Management

Corporate Secretariat

Investment

Operations

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Corporate Development Director

Chief Financial Officer

Business Development Manager

Legal Director

Commercial Director

Investment Manager

Corporate Secretary

Compliance Officer

Strategy Director

Managing Director

Board Member

Operations Director

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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