Partnership Agreement Template in Saudi Arabia, Ready to Copy
5 October، 2026
Many projects start between two friends or relatives on a verbal deal: "you bring the money, I bring the work". Then disputes begin with the first profit or the first loss. A written partnership agreement between two parties sets out from the start each partner's share, who manages, how profits are distributed and what happens when someone leaves. Below is a general partnership agreement template you can copy, followed by an explanation of its key clauses. One caution: if the partnership will carry on a regulated commercial activity, you may need to incorporate a formal company and register it in the Commercial Register.
Partnership agreement template between two parties (general form)
Official documents and filings in Saudi Arabia are in Arabic, so the Arabic template below is the one to sign and use, and the Arabic text prevails. An English translation follows it to help you understand and prepare the content.
عقد شراكة
أُبرم هذا العقد بتاريخ [ ] بين كل من:
الطرف الأول: [الاسم]، رقم الهوية [ ]، العنوان [ ]، الجوال [ ].
الطرف الثاني: [الاسم]، رقم الهوية [ ]، العنوان [ ]، الجوال [ ].
البند الأول — موضوع الشراكة: اتفق الطرفان على الشراكة في [وصف النشاط أو المشروع] في [المدينة].
البند الثاني — رأس المال والحصص:
- يقدم الطرف الأول [مبلغ ( ) ريال / أصول: ( )].
- يقدم الطرف الثاني [مبلغ ( ) ريال / عمله وخبرته في ( )].
- حصة الطرف الأول [ ]% وحصة الطرف الثاني [ ]%.
البند الثالث — الإدارة: يتولى [الطرف ( )] إدارة المشروع، وتحتاج القرارات التالية موافقة الطرفين كتابةً: [الاقتراض، بيع الأصول، التعاقد بما يزيد على ( ) ريال، إدخال شريك جديد].
البند الرابع — الحسابات والأرباح: تُمسك حسابات منتظمة، وتُوزع الأرباح [شهرياً / كل ( ) أشهر] بنسبة [ ]، وتُتحمل الخسائر بنسبة [ ].
البند الخامس — التزامات الشريكين: يلتزم كل طرف بعدم منافسة المشروع خلال مدة الشراكة، وبالمحافظة على أسراره، وبعدم استعمال أمواله لمصلحته الخاصة.
البند السادس — المدة: [مدة محددة ( ) تبدأ من ( ) / مدة غير محددة].
البند السابع — الانسحاب والتخارج: يحق لأي طرف الانسحاب بإشعار كتابي قبل [ ] يوماً، ويُقيَّم نصيبه وفق [آخر ميزانية / تقييم محايد]، وللطرف الآخر أولوية شراء الحصة.
البند الثامن — الوفاة أو العجز: [تستمر الشراكة مع الورثة / تُصفّى ويُدفع للورثة نصيب مورثهم].
البند التاسع — حل النزاع: يُحل أي نزاع ودياً، فإن تعذر فأمام [المحكمة المختصة / التحكيم].
حُرر هذا العقد من نسختين بيد كل طرف نسخة.
الطرف الأول: [الاسم والتوقيع] الطرف الثاني: [الاسم والتوقيع]
Partnership Agreement
This agreement was made on [ ] between:
First Party: [Name], ID number [ ], address [ ], mobile [ ].
Second Party: [Name], ID number [ ], address [ ], mobile [ ].
Clause 1 — Subject of the partnership: The two parties have agreed to partner in [description of the activity or project] in [city].
Clause 2 — Capital and shares:
- The First Party contributes [an amount of ( ) riyals / assets: ( )].
- The Second Party contributes [an amount of ( ) riyals / their work and expertise in ( )].
- The First Party's share is [ ]% and the Second Party's share is [ ]%.
Clause 3 — Management: [Party ( )] manages the project. The following decisions require the written approval of both parties: [borrowing, selling assets, contracting for more than ( ) riyals, admitting a new partner].
Clause 4 — Accounts and profits: Regular accounts are kept. Profits are distributed [monthly / every ( ) months] in the ratio [ ], and losses are borne in the ratio [ ].
Clause 5 — Partners' obligations: Each party undertakes not to compete with the project during the partnership, to keep its confidential information, and not to use its funds for their own benefit.
Clause 6 — Term: [A fixed term of ( ) starting from ( ) / an indefinite term].
Clause 7 — Withdrawal and exit: Either party may withdraw by written notice [ ] days in advance. Their share is valued according to [the latest balance sheet / an independent valuation], and the other party has priority to buy the share.
Clause 8 — Death or incapacity: [The partnership continues with the heirs / the partnership is liquidated and the heirs are paid the deceased's share].
Clause 9 — Dispute resolution: Any dispute is settled amicably; failing that, before [the competent court / arbitration].
This agreement is made in two copies, one for each party.
First Party: [Name and signature] Second Party: [Name and signature]
What to watch out for
Clause
Why it matters
The working partner
Define exactly what work and hours they contribute, and what happens if they stop working
Major decisions
Requiring both parties' approval stops either one acting alone with the project's money
Accounts
The lack of regular accounts is the most common cause of disputes between partners
Exit
Without an agreed valuation method, leaving turns into a court dispute
Is a partnership agreement enough without setting up a company?
It works to organise the relationship between the two parties in a specific project. But carrying on a commercial activity under a business name, or dealing with banks and government bodies, usually needs a registered legal form. Read company formation.
Can one of the partners be a foreigner?
A non-Saudi's participation in a commercial activity is subject to investment requirements, and a partnership "in name only" to get around them is illegal concealment (tasattur). Read setting up a company as a non-Saudi.
My partner won't give me my share of the profits. What can I do?
Start with a written request to see the accounts, then claim an accounting and distribution of profits before the competent authority. Read the Commercial Courts Law.
Need a partnership agreement drafted for your situation?
This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.
