Why Businesses in Saudi Arabia Trust Rowad Al Qimma for Contract Drafting Services
A contract is not the paperwork that closes a negotiation. It is the first line of defence a company has — and since the 2023 Civil Transactions Law came into force, the standard it has to meet has changed.
Key takeaways
- The Civil Transactions Law (2023) is the first comprehensive civil codification in the Kingdom, and it applies with near-retroactive effect — contracts signed before December 2023 may need review.
- For agreements tied to government entities or subject to government procurement regulations, the Arabic text governs. A translated afterthought is a risk, not a formality.
- Freedom of contract is wide, but every custom clause has to stay inside the limits of Sharia principles and public order.
- Rowad Al Qimma drafts bilingual contracts of equal legal weight, built around the client's actual business rather than a recycled template.
Saudi Arabia is in the middle of one of the largest waves of institutional growth in its modern history, driven by Vision 2030 and a steadily expanding base of startups and commercial enterprises across every sector. With that growth comes a rising need for precise, dependable commercial contracts — agreements that protect each party's rights and close the door on disputes before they ever arise.
Drafting a contract is not a formality that simply closes out a negotiation. A vague or incomplete contract can cost months of litigation and losses that were entirely avoidable with sound legal drafting from the outset.
This guide walks through why businesses in Saudi Arabia — from early-stage startups to large enterprises — choose Rowad Al Qimma as a trusted partner for contract drafting, alongside a practical framework for understanding the rules that govern contract drafting in the Kingdom today.
The legal framework for contract drafting in Saudi Arabia
Before evaluating any contract drafting service, businesses should understand the legal foundation their contracts are built on — because no drafting, however polished it looks, holds up if it isn't aligned with the laws currently in force.
The Saudi Civil Transactions Law (2023)
The Civil Transactions Law, issued by Royal Decree No. M/191 dated 29 Dhu al-Qi'dah 1444H (18 June 2023), is the first comprehensive civil codification in the Kingdom's history, comprising 721 articles governing obligations, contracts, property, and civil liability. It came into force on 16 December 2023 and applies with near-retroactive effect to most existing agreements — meaning contracts drafted before that date may need review to confirm they still align with the new provisions.
The law aims to strengthen judicial predictability and transparency, reduce the grounds on which contracts can be voided or rescinded, and expand contractual freedom in step with the Kingdom's fast-moving economic environment. For businesses, this means contracts today need to be drafted against this specific legal backdrop — not against outdated templates or legacy references that no longer apply.
If your company signed supply, partnership, or service agreements before December 2023, those contracts were written against a different legal baseline. A review against the current law is the cheapest form of dispute prevention available to you.
Arabic as the governing language
One constant every business operating in Saudi Arabia should keep in mind: contracts — particularly those tied to government entities or subject to government procurement regulations — must be written in Arabic, with an additional language permitted, provided the Arabic version governs in the event of a dispute over interpretation. This requirement makes true bilingual drafting — not a literal translation, but equally rigorous legal language in both versions — a decisive factor for any company dealing with international partners.
Freedom of contract, within limits
The law affirms freedom of contract and the presumed validity of contractual terms, provided those terms do not conflict with Sharia principles or public order. This gives businesses wide latitude to tailor their contracts to their specific activities — but it also means every custom clause needs precise legal judgement to ensure it stays within the bounds of the law.
Why businesses in Saudi Arabia choose Rowad Al Qimma
A genuinely bilingual team with real experience in the Saudi and Gulf markets
Working with Saudi and Gulf companies — and often international partners within the same contract — requires a team that understands both legal languages, not just literally, but in precise legal terminology. At Rowad Al Qimma, contracts are drafted so that both the Arabic and English versions carry equal legal weight and precision, rather than treating the Arabic text as an afterthought translation. You can read more about our team and how we work on the About page.
Drafting tailored to each business — not recycled templates
Every sector carries its own risks: an industrial supply contract is fundamentally different from a consulting services agreement, and a foreign-partnered incorporation contract needs clauses that have no place in a standard local employment contract. The Rowad Al Qimma team starts by understanding the client's actual business and risk profile before drafting a single clause — rather than adapting a generic template for every client.
Full compliance with Saudi regulations and Sharia principles
Every contract goes through a compliance review against the Civil Transactions Law and any relevant sector-specific regulations (Companies Law, government procurement regulations where applicable), and is checked to be free of any clause that could void the contract or expose it to challenge — such as ambiguity in subject matter, coercion, or terms that conflict with public order.
Staying ahead of legislative change
Recent years have brought rapid legislative change to Saudi Arabia — from the 2023 Civil Transactions Law to ongoing updates to the Companies Law and foreign investment regulations. The Rowad Al Qimma team tracks these developments continuously, so the contracts drafted today remain valid and enforceable tomorrow, rather than resting on provisions the law has already moved past.
Types of contracts Rowad Al Qimma drafts for Saudi businesses
| Contract type | Common use |
|---|---|
| Incorporation and partnership agreements | Defining partner shares, governance mechanisms, and entry/exit terms |
| Supply and commercial service agreements | Governing the relationship between a company and its suppliers or service providers, including quality, delivery, and liability |
| Employment and HR contracts | Defining mutual rights and obligations between company and employee in line with the Labor Law |
| NDAs and intellectual property protection | Protecting trade secrets and sensitive information during negotiations or partnerships |
| Foreign investment and branch establishment agreements | Structuring a foreign investor's market entry in compliance with foreign investment regulations |
Each contract type carries different risks, and a drafting approach suited to a simple supply agreement can fall short entirely for a complex foreign investment contract. That's why accurately classifying the nature of the agreement is the first step in every drafting engagement at Rowad Al Qimma.
Common mistakes in commercial contract drafting in Saudi Arabia
| Common mistake | Potential impact | How Rowad Al Qimma avoids it |
|---|---|---|
| Ambiguity in defining the scope of obligations | Difficulty proving breach in a dispute | Every obligation tied to a specific clause number and a measurable standard |
| Omitting termination clauses aligned with the law | A party stays bound to obligations it no longer wants | Clear termination terms drafted in line with the Civil Transactions Law |
| Not designating the Arabic version as the governing text | Disputes over which version controls in interpretation | Arabic drafted to full legal quality, with an explicit governing-language clause |
| Copying clauses from foreign contracts without localising them | Clauses may be void or unenforceable locally | Every imported clause reviewed against current Saudi regulations |
| Omitting a dispute resolution mechanism | More complex, drawn-out litigation later | A clear, legally compliant arbitration or litigation route defined from the start |
Recognise any of these gaps in a contract you have already signed? Send it to us for review before it becomes a dispute.
The contract drafting process at Rowad Al Qimma
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Discovery session
Understanding the client's business and the risks they need covered.
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Identifying the contract type and governing framework
Choosing the correct legal basis — Civil Transactions Law, Companies Law, or others as applicable.
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Bilingual initial drafting
Preparing Arabic and English drafts of equal legal precision.
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Internal compliance review
Confirming the contract is free of any clause that could void it or expose it to legal challenge.
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Client review and revision
Incorporating client feedback without compromising the legal integrity of the text.
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Final delivery
Handing over the executed drafts in both languages, ready for signature.
Specialised contract drafting vs. off-the-shelf online templates
In recent years, platforms and ready-made contract templates that let businesses generate a contract in minutes have become widespread. These tools may work for very simple, low-risk agreements, but they carry fundamental limitations in real commercial situations:
- A template doesn't know your business. Templates are designed to cover the broadest possible range of generic cases, not your company's specific situation.
- Legislative currency. A template drafted before the 2023 Civil Transactions Law may still contain clauses that are no longer valid, without the user ever knowing.
- No specialised legal review. There's no substitute for a specialised legal eye reviewing each clause against the actual nature of the commercial relationship — not just generic language rules.
A template can be a fast starting point, but it's no substitute for specialised review and drafting before signing any serious commercial commitment.
Sectors we serve
Rowad Al Qimma's contract drafting expertise spans several sectors experiencing notable growth in the Saudi market:
- Construction and contracting. Project execution contracts and contractual risk management between owner and contractor.
- Real estate. Sale, lease, and development agreements aligned with current regulations.
- Technology and startups. Licensing agreements, IP protection, and incorporation contracts involving investor participation.
- Professional and consulting services. Service agreements with precisely defined scope to prevent unplanned scope creep.
Our commitment to our clients
At Rowad Al Qimma, we don't treat contract drafting as a task that ends with file delivery — it's part of a longer-term relationship of trust with the businesses we serve.
Frequently asked questions about contract drafting in Saudi Arabia
Does a contract have to be in Arabic in Saudi Arabia?
Yes, for contracts tied to government entities or subject to government procurement regulations, they must be drafted in Arabic, with an additional language permitted provided Arabic governs in case of dispute. For contracts between private parties, the governing language can be agreed upon, but it's always advisable to have a certified Arabic version to ease any future local legal proceedings.
Can a contract be amended after it's signed?
Yes, through an addendum signed by all parties, provided the amendment aligns with the original contract terms and does not conflict with public order.
What's the difference between contract review and drafting from scratch?
Drafting from scratch means building the entire contract around the client's needs, while review means examining an existing contract — often sent by the other party — to identify risks and gaps before signing.
Does the new Civil Transactions Law affect my older contracts?
The law applies with near-retroactive effect to most cases, meaning reviewing existing contracts signed before December 2023 against the new law is an important step to avoid unexpected conflicts.
Book your legal consultation today
Does your business need a new contract, or a review of an existing one in light of the new Civil Transactions Law? Get in touch with the Rowad Al Qimma team — or read more about how we work first.