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The Memorandum of Interest (MOI) is a crucial preliminary document used in Saudi Arabian business practices when parties wish to formally express their interest in exploring potential business opportunities without creating binding obligations. It serves as a structured framework for initial discussions and negotiations, particularly useful in complex commercial transactions, joint ventures, or strategic partnerships. The document must comply with Saudi Arabian law, including both commercial regulations and Sharia principles, making it particularly relevant for businesses operating in or entering the Saudi market. While non-binding in nature, the MOI typically includes certain enforceable provisions such as confidentiality obligations and governing law clauses. It's commonly used during the early stages of business relationships to outline the scope of potential collaboration, establish discussion parameters, and protect sensitive information exchanged during negotiations.

1. Parties: Identification of all parties including full legal names, registration details, and addresses

2. Background: Context of the potential transaction or relationship, including brief description of each party's business

3. Definitions: Key terms used throughout the document

4. Purpose: Clear statement of the intended business relationship or transaction being explored

5. Non-Binding Nature: Express statement that the MOI is non-binding except for specific clauses

6. Scope of Interest: Detailed description of the potential transaction or collaboration being considered

7. Duration: Period during which the MOI will remain in effect

8. Confidentiality: Obligations regarding confidential information shared during discussions

9. Costs and Expenses: Statement on how costs associated with discussions and due diligence will be handled

10. Governing Law: Confirmation of Saudi law as governing law and compliance with Sharia principles