Contracts are the backbone of commercial relationships, yet many businesses in Saudi Arabia overlook critical provisions that could save them from costly disputes. Whether you are signing a supply agreement, service contract, or partnership deed, these five clauses deserve your closest attention.
1. Governing Law & Jurisdiction — Ensure Saudi law applies and specify whether disputes go to the Commercial Court, administrative committees, or arbitration.
2. Force Majeure — Given regional geopolitical and health risks, a well-drafted force majeure clause protects both parties from liability when performance becomes impossible.
3. Termination & Exit — Define clear exit routes, notice periods, and post-termination obligations to avoid deadlock.
4. Confidentiality & IP — Protect trade secrets and clarify ownership of any intellectual property created during the relationship.
5. Dispute Resolution — Consider arbitration under Saudi Arbitration Regulations or expedited commercial court procedures for faster resolution.
Our Firm regularly reviews and drafts commercial agreements for clients across sectors, ensuring each clause is tailored to Saudi law and the specific risks of the transaction.
