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Non Compete Disclosure Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Non Compete Disclosure Agreement

"I need a Non-Compete Disclosure Agreement for a senior software engineer joining my Saudi-based technology company in March 2025, with a two-year restriction period and specific provisions for protecting our AI development projects and client relationships."

Document background
The Non-Compete Disclosure Agreement is essential for businesses operating in Saudi Arabia who need to protect their competitive advantages and confidential information. This document is typically used when engaging with employees, contractors, business partners, or other parties who will have access to sensitive business information or could potentially compete with the business. The agreement must be carefully structured to comply with Saudi Labor Law, Commercial Courts Law, and Sharia principles, particularly regarding reasonable restrictions in terms of duration, geographical scope, and type of prohibited activities. It includes specific provisions for protecting confidential information, defining restricted activities, and outlining enforcement mechanisms. The document is especially crucial in Saudi Arabia's developing business environment, where protection of intellectual property and business interests requires robust legal frameworks.
Suggested Sections

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details

2. Background: Context of the agreement, relationship between parties, and purpose of the non-compete and confidentiality obligations

3. Definitions: Detailed definitions of key terms including Confidential Information, Competitive Activities, Territory, and Restricted Period

4. Scope of Non-Compete: Detailed description of prohibited competitive activities, geographical limitations, and duration in compliance with Saudi Labor Law Article 83

5. Confidentiality Obligations: Specific obligations regarding the protection and non-disclosure of confidential information

6. Duration and Territory: Specific timeframe for the non-compete obligations and geographical scope of restrictions

7. Consideration: Details of compensation or consideration provided in exchange for the non-compete obligations, as required under Saudi law

8. Exceptions and Permitted Activities: Clear outline of activities that are permitted despite the non-compete restrictions

9. Return of Confidential Information: Procedures for returning or destroying confidential information upon termination

10. Enforcement and Remedies: Legal remedies available in case of breach, including injunctive relief and damages

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for dispute resolution

12. General Provisions: Standard contractual provisions including severability, amendments, and notices

Optional Sections

1. Post-Employment Obligations: Additional specific obligations applicable when the agreement is with employees rather than business partners

2. Training and Investment Protection: Specific provisions protecting employer investment in employee training and development

3. Assignment and Succession: Provisions regarding the transfer of rights and obligations, particularly relevant for corporate parties

4. Shariah Compliance Declaration: Explicit declaration of Shariah compliance, particularly important for agreements involving Islamic financial institutions

5. Garden Leave: Provisions for paid leave during notice period to protect business interests

6. Moral Rights: Provisions relating to moral rights in intellectual property, if relevant to the business context

Suggested Schedules

1. Schedule 1: Restricted Activities: Detailed list of specific activities, businesses, and roles that are restricted under the non-compete provisions

2. Schedule 2: Restricted Territory: Detailed mapping or list of geographical areas where restrictions apply

3. Schedule 3: Confidential Information: Detailed categorization of confidential information covered by the agreement

4. Schedule 4: Compensation Details: Specific details of any compensation provided for the non-compete obligations

5. Appendix A: Key Competitors: List of specific competitors with whom engagement is prohibited

6. Appendix B: Approved Activities: List of pre-approved activities that are explicitly permitted despite the non-compete provisions

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

Technology

Healthcare

Financial Services

Manufacturing

Professional Services

Oil and Gas

Telecommunications

Real Estate

Retail

Education

Construction

Defense

Pharmaceutical

Logistics

Aviation

Banking

Islamic Finance

Consulting

Relevant Teams

Legal

Human Resources

Executive Leadership

Research and Development

Sales

Business Development

Information Technology

Product Development

Operations

Finance

Strategy

Marketing

Customer Service

Engineering

Professional Services

Procurement

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Manager

Research Director

Sales Manager

Business Development Manager

Technical Consultant

Product Manager

Software Engineer

Financial Analyst

Operations Manager

Strategy Consultant

Project Manager

Account Executive

Research Scientist

Legal Counsel

HR Director

Marketing 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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