02 — Core practice
Partnerships & Joint Ventures
In the Kingdom, the right partner is often the difference between qualifying and being overlooked. We find, vet and approach the Saudi partners that fit your ambition, then help you agree terms that protect you.
What we deliver
- 01
Partner & distributor search
Local partners, distributors and agents screened against your criteria.
- 02
Partner due diligence
Ownership and beneficial owners, sanctions and PEP screening, litigation, reputation, conflicts and capability, checked before any introduction. For regulated products, the partner’s own licences, storage and track record with the regulator too.
- 03
Introductions & deal facilitation
Warm introductions and prepared first meetings with decision-makers.
- 04
Joint-venture structuring
Structure options, shareholding, reserved matters, information rights and exit terms that fit both sides.
- 05
Negotiation support
Term sheets and negotiation strategy, alongside your legal advisers.
The outcome
The right partner, vetted and introduced, on terms you understand.
Entry routes
Five ways to enter, compared.
The right route depends on who you sell to, how much control you need and how fast you must move.
| Entry route | Control | Speed to market | Set-up cost | Market and tender access | Partner dependence | Best suited to |
|---|---|---|---|---|---|---|
| Joint venture with a Saudi partner | Medium | Medium | Medium | High | High | Tenders and projects where local presence, content and relationships decide eligibility |
| Agent or distributor | Low | High | Low | Medium | Medium | Testing product demand quickly with low commitment, under an agreement registered with the Ministry of Commerce |
| Wholly owned company (LLC) | High | Low | High | Medium | Low | Long-term operations where control and IP protection matter most |
| Branch of the foreign company | High | Medium | Medium | Low | Low | Project delivery by an established foreign firm under its own name |
| Regional headquarters (RHQ) | High | Low | High | High | Low | Groups seeking government contracts and a regional base, with 0% tax on eligible RHQ income for 30 years |
Indicative comparison for orientation only; the right route depends on sector, buyers and ownership rules. Not legal advice.
FAQ
Common questions
What structure do most joint ventures use?
Most use a limited liability company. By default, amending an LLC’s articles needs partners holding at least 75% of the capital, so minority protections must be written in. A closed or simplified joint stock company makes share transfers and governance more flexible.
Are shareholder agreements enforceable in Saudi Arabia?
Yes. Under the 2023 Companies Law, partner and shareholder agreements are binding and can be built into the articles of association. The articles filed with the Ministry of Commerce are in Arabic, so make sure the Arabic text says what you agreed.
How do you deal with deadlock?
With a ladder agreed at the start: escalation to senior executives, then mediation or expert determination, then arbitration. Buy-sell and put and call options are used too, but their enforceability is less settled, especially in an LLC, so we test them with your lawyers before relying on them.
What should we avoid?
Nominee or “front” arrangements, which are illegal under the Anti-Concealment Law, and vague terms on control, deadlock, exit and intellectual property.
Related services
Talk to us about Partnerships & Joint Ventures.
Tell us your sector and ambition. Within one business day we will reply with an honest first view of where the opportunity is and, if it fits, a scope for an Opportunity Scan.
Discuss an opportunity