The Advisory Services Contract is essential for businesses and professionals providing consultancy or advisory services in Saudi Arabia. This document is particularly crucial given the Kingdom's unique legal framework that combines modern commercial law with Islamic Sharia principles. It's designed for use when engaging external advisors, consultants, or professional services firms, providing a structured framework for the advisory relationship while ensuring compliance with Saudi regulations. The contract typically covers comprehensive service descriptions, payment terms, confidentiality provisions, and regulatory compliance requirements. It's especially relevant in the context of Saudi Arabia's Vision 2030 initiatives, where advisory services are increasingly sought for business transformation and development projects.
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1. Parties: Identification of the advisor and the client, including full legal names, commercial registration details, and authorized representatives
2. Background: Context of the advisory relationship and brief description of the client's requirements
3. Definitions: Key terms used throughout the agreement, including 'Services', 'Deliverables', and 'Confidential Information'
4. Scope of Services: Detailed description of the advisory services to be provided
5. Term and Timeline: Duration of the agreement and key milestone dates
6. Fees and Payment Terms: Compensation structure, payment schedule, and currency specifications
7. Obligations of the Advisor: Key responsibilities, performance standards, and delivery requirements
8. Client's Obligations: Client's responsibilities including providing information and cooperation
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property: Ownership and usage rights of materials and deliverables
11. Liability and Indemnification: Limitation of liability and mutual indemnification provisions
12. Termination: Grounds for termination and consequences
13. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction details
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Compliance with Islamic Principles: Specific clause confirming compliance with Sharia principles - required when explicitly requested by client or when dealing with Islamic financial institutions
2. Force Majeure: Provisions for unforeseen circumstances - recommended for longer-term advisory arrangements
3. Non-Competition: Restrictions on advisor's activities with competitors - used when sharing sensitive market information
4. Insurance: Professional indemnity and other insurance requirements - relevant for high-value or high-risk advisory services
5. Anti-Corruption: Compliance with anti-corruption laws - particularly important for international advisors
6. Data Protection: Specific data handling and protection requirements - necessary when personal or sensitive data is involved
7. Subcontracting: Terms for engaging subcontractors - relevant when advisor may need to involve third parties
8. Language: Specification of controlling language - needed when contract is bilingual Arabic/English
1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and timelines
2. Schedule 2 - Fee Schedule: Detailed fee structure, payment milestones, and expense policies
3. Schedule 3 - Key Personnel: List of key team members and their roles
4. Schedule 4 - Service Levels: Performance metrics and service level requirements
5. Schedule 5 - Client Materials: List of materials and information to be provided by the client
6. Appendix A - Compliance Requirements: Specific regulatory and compliance requirements applicable to the services
7. Appendix B - Required Forms: Standard forms and templates to be used during the engagement
8. Appendix C - Communication Protocol: Procedures for routine communications and escalations
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