Document background
The Transition Services Agreement (TSA) is a crucial document used in corporate transactions where one entity needs to provide temporary support services to another, typically following a business separation, acquisition, or divestiture. This agreement is particularly important in the Saudi Arabian context, where it must align with both modern business practices and Islamic law principles. It outlines detailed service arrangements, including scope, duration, service levels, costs, and operational responsibilities, while ensuring compliance with Saudi regulations and Sharia requirements. The TSA serves as a bridge to maintain business continuity during organizational changes, providing a structured framework for service delivery until the recipient entity can operate independently or establish alternative arrangements.
