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Real Estate Investment Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Real Estate Investment Agreement

"I need a Real Estate Investment Agreement under Saudi law for a foreign investment company planning to invest SAR 50 million in a commercial development project in Riyadh, with construction starting in March 2025."

Document background
The Real Estate Investment Agreement is a crucial document used in Saudi Arabia when establishing structured real estate investments between multiple parties. It is particularly relevant for both domestic and foreign investments in Saudi Arabian real estate assets, whether for development projects, existing properties, or mixed-use developments. The agreement must comply with Saudi Arabia's dual legal system, incorporating both civil law requirements and Shariah principles, particularly in areas of financing and profit-sharing. It addresses key regulatory requirements including the Real Estate Law (Royal Decree No. M/50), Foreign Investment Law, and Capital Market Authority regulations. The document typically includes detailed provisions for capital contributions, investment structure, property management, profit distribution, and exit mechanisms, while ensuring compliance with local ownership restrictions and investment regulations.
Suggested Sections

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

2. Background: Context of the investment, including property overview and investment objectives

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Investment Structure: Details of the investment arrangement, including ownership percentages, capital contributions, and investment vehicle

5. Property Details: Comprehensive description of the real estate asset(s), including legal title and encumbrances

6. Investment Amount and Payment Terms: Specification of investment amounts, payment schedule, and funding mechanisms

7. Representations and Warranties: Statements of fact and assurances from all parties regarding their capacity, authority, and the property

8. Obligations of the Parties: Detailed responsibilities of each party in managing and operating the investment

9. Profit Distribution: Framework for calculating and distributing returns on investment

10. Management and Control: Governance structure and decision-making processes

11. Transfer Restrictions: Limitations on transferring investment interests and right of first refusal provisions

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

13. Shariah Compliance: Provisions ensuring compliance with Islamic finance principles

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

15. Confidentiality: Protection of confidential information and trade secrets

16. Notices: Communication procedures between parties

17. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Development Obligations: For properties requiring development, details of construction obligations and timelines

2. Property Management: When specific property management arrangements are needed

3. Exit Strategy: Specific provisions for investment exit, including IPO or sale procedures

4. Environmental Compliance: For properties with environmental considerations or requirements

5. Zakat and Tax Provisions: Detailed tax structure when specific tax planning is required

6. Foreign Ownership Compliance: When foreign investors are involved, specific compliance with foreign ownership laws

7. Financing Provisions: When external financing is part of the investment structure

8. Insurance Requirements: Detailed insurance obligations beyond standard coverage

9. Asset Management: When specific asset management services are part of the agreement

Suggested Schedules

1. Property Description Schedule: Detailed legal and technical description of the property, including title deeds and plans

2. Investment Structure Schedule: Detailed breakdown of investment amounts, shareholding structure, and capital contributions

3. Payment Schedule: Detailed payment terms, timelines, and mechanisms

4. Management Structure Schedule: Organizational chart and management procedures

5. Financial Projections: Expected returns and financial models

6. Due Diligence Reports: Summary of technical, legal, and financial due diligence

7. Regulatory Approvals: List of required governmental and regulatory approvals

8. Service Providers: List of key service providers and their roles

9. Shariah Compliance Certificate: Documentation of Shariah board approval and compliance requirements

10. Form of Transfer Documents: Template documents for any future transfers or assignments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























































Clauses




































Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Hospitality

Mixed-use Development

Construction

Islamic Finance

Investment Management

Property Development

Infrastructure

Logistics

Healthcare Facilities

Education Facilities

Relevant Teams

Legal

Real Estate

Investment

Finance

Compliance

Risk Management

Asset Management

Property Management

Development

Acquisitions

Portfolio Management

Islamic Finance

Corporate Strategy

Operations

Due Diligence

Relevant Roles

Chief Investment Officer

Real Estate Director

Legal Counsel

Investment Manager

Property Manager

Development Director

Finance Director

Compliance Officer

Asset Manager

Fund Manager

Chief Financial Officer

Real Estate Analyst

Investment Analyst

Risk Manager

Shariah Compliance Officer

Portfolio Manager

Acquisitions Manager

Chief Executive Officer

Real Estate Investment Director

Head of Real Estate

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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