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The Non-Financial Guarantee agreement is essential in Saudi Arabian commercial transactions where performance assurance is required without involving direct financial obligations. This document is typically used when a party needs to guarantee the performance, delivery, or quality obligations of another party in commercial arrangements. The guarantee must comply with both Saudi Arabian commercial law and Sharia principles, particularly the Islamic concept of Kafala (guarantee). It's commonly utilized in construction projects, service agreements, and supply contracts where performance guarantees are crucial. The document includes specific provisions for enforcement under Saudi law, details of the guaranteed obligations, conditions for calling upon the guarantee, and relevant dispute resolution mechanisms. This type of guarantee is particularly important in government contracts and large commercial projects where performance security is required.

1. Parties: Identification of the Guarantor, Principal Obligor, and Beneficiary with full legal names and addresses

2. Background: Context of the guarantee, including reference to the underlying obligation or relationship

3. Definitions: Key terms used throughout the guarantee agreement, including specific Saudi law terminology

4. Guarantee: Core guarantee provisions, scope, and extent of the guarantor's obligations

5. Nature of Guarantee: Specification that this is a non-financial guarantee and its precise purpose

6. Duration: Term of the guarantee, including commencement and expiry dates

7. Guarantor's Obligations: Detailed description of what the guarantor is committing to do or provide

8. Conditions Precedent: Any conditions that must be met before the guarantee becomes effective

9. Demand Requirements: Process and requirements for making a valid demand under the guarantee

10. Representations and Warranties: Statements of fact and assurances given by the guarantor

11. Islamic Law Compliance: Specific provisions ensuring compliance with Sharia principles

12. Enforcement: Procedures for enforcing the guarantee under Saudi law

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction provisions