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The Financial Management Agreement is essential for establishing professional financial management relationships in Saudi Arabia. It is typically used when clients seek to delegate the management of their financial assets to licensed professionals, requiring careful consideration of both regulatory compliance and Shariah principles. The agreement must adhere to Capital Market Authority (CMA) regulations, Saudi Arabian Monetary Authority (SAMA) rules, and Islamic financial principles. It establishes the framework for investment strategies, risk management, reporting structures, and fee arrangements while incorporating specific Shariah-compliant investment restrictions and profit-sharing mechanisms. This document is crucial for protecting both parties' interests while ensuring compliance with Saudi Arabia's unique regulatory and religious requirements.

1. Parties: Identification of the financial manager and the client, including their full legal names, addresses, and registration details

2. Background: Context of the agreement, including the client's intention to appoint the financial manager and the manager's qualifications and regulatory authorizations

3. Definitions: Detailed definitions of terms used throughout the agreement, including specific Islamic finance terms and regulatory terminology

4. Appointment and Scope of Services: Formal appointment of the financial manager and detailed description of the financial management services to be provided

5. Shariah Compliance: Commitment to adherence to Shariah principles and specific requirements for Islamic financial management

6. Authority and Limitations: Extent and limitations of the financial manager's authority to act on behalf of the client

7. Duties and Responsibilities: Detailed obligations of the financial manager, including investment policies, risk management, and compliance requirements

8. Fees and Expenses: Structure and calculation of management fees, expenses, and any performance-based compensation

9. Reporting and Communications: Requirements for regular reporting, performance updates, and client communications

10. Compliance and Risk Management: Obligations regarding regulatory compliance, risk management procedures, and internal controls

11. Confidentiality: Provisions for protecting confidential information and client data

12. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

13. Liability and Indemnification: Extent of financial manager's liability and mutual indemnification provisions

14. Governing Law and Dispute Resolution: Specification of Saudi law as governing law and dispute resolution mechanisms