With the recent amendment to the Corporate Law in the Kingdom of Saudi Arabia, which came into effect in January 2023, the shareholder agreement has become a critical document to consider. Its terms can be incorporated, in whole or in part, into both the incorporation contracts and the company’s main bylaws.

We strongly recommend that corporate partners sign a shareholder agreement that clearly outlines key provisions such as partnership terms, management and voting processes, valuation methods, exit strategies, and other essential elements. This ensures a healthy, well-structured partnership based on a solid legal foundation.