��������Ƶ

The Debt Agreement Contract is a fundamental legal instrument used in Saudi Arabia for documenting financial obligations between parties in compliance with Islamic law. It is typically employed when a financial institution or lender provides financing to a borrower, whether for business expansion, asset acquisition, or other legitimate purposes. The document must strictly adhere to Shariah principles, particularly avoiding conventional interest (riba), and comply with Saudi Arabian banking regulations and commercial laws. The agreement includes comprehensive details about the financing structure, profit calculation methods, security arrangements, and enforcement mechanisms. It's essential for establishing legally binding obligations while ensuring religious and regulatory compliance in the Saudi Arabian jurisdiction.

1. Parties: Identification of the lender and borrower, including full legal names, addresses, and registration details

2. Background: Recitals explaining the context of the debt agreement and confirming Shariah compliance

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Arabic/English language precedence

4. Principal Terms: Details of the debt amount, purpose, and Shariah-compliant profit structure

5. Disbursement Conditions: Conditions precedent and procedures for disbursement of the debt amount

6. Payment Terms: Repayment schedule, payment methods, and early payment provisions

7. Security: Details of any security or collateral provided for the debt

8. Representations and Warranties: Standard and Shariah-specific representations and warranties by the borrower

9. Borrower Covenants: Positive and negative covenants applicable to the borrower

10. Events of Default: Circumstances constituting default and consequences thereof

11. Shariah Compliance: Specific provisions ensuring compliance with Islamic finance principles

12. Notices: Process and requirements for serving notices between parties

13. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction of Saudi courts