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A Trade Reference Letter is a critical business document used in Saudi Arabia when companies need to establish their creditworthiness or business reliability with new partners, financial institutions, or for tender participation. This document is particularly important in the Saudi Arabian business context, where formal documentation of business relationships carries significant weight in commercial decisions. The letter provides essential information about a company's payment behavior, transaction history, and business relationship quality, all while adhering to Saudi commercial law and Islamic business principles. It's commonly required for bank facility applications, major contract negotiations, or when establishing new significant business relationships in the Kingdom. The content must be accurate and verifiable, as it falls under the purview of Saudi Arabia's Anti-Commercial Fraud Law and Commercial Court regulations.

1. Letterhead and Date: Official company letterhead including full legal name, address, and contact details of the issuing company, plus current date

2. Recipient Details: Full name and address of the recipient organization

3. Subject Line: Clear indication that this is a Trade Reference Letter for [Company Name]

4. Introduction: Statement confirming the business relationship with the subject company and duration of the relationship

5. Business Relationship Overview: Description of the nature of business dealings and types of transactions conducted

6. Payment History: Information about payment behavior, typical payment terms, and reliability

7. Transaction Volume: General indication of the scale of business conducted (can be expressed in ranges)

8. Closing Statement: Positive recommendation and willingness to continue business relationship

9. Signatory Block: Name, position, and signature of authorized representative