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The Business Proposal Rejection Letter is an essential document in Saudi Arabian business communications, used when an organization needs to formally decline a business proposal or offer from another entity. This document must be drafted in accordance with Saudi Commercial Law and Islamic business principles, incorporating appropriate cultural and religious sensitivities. The letter typically includes acknowledgment of the proposal, clear communication of the rejection decision, and maintains professional courtesy. It serves multiple purposes: documenting the decision for legal and administrative purposes, maintaining professional relationships, and potentially leaving the door open for future business opportunities. The document should be written in a way that respects local business customs while providing clear reasoning for the rejection when appropriate.

1. Letterhead and Date: Company letterhead including full legal name, address, and contact details, with the current Gregorian and Hijri dates

2. Recipient Details: Full name, title, company name, and complete address of the recipient

3. Reference Line: Reference to the specific proposal being rejected, including any relevant proposal numbers or dates

4. Formal Greeting: Culturally appropriate salutation using proper titles and honorifics

5. Acknowledgment: Expression of gratitude for the proposal and recognition of the time and effort invested

6. Rejection Statement: Clear but polite statement of rejection with brief, general reasoning

7. Professional Closure: Courteous closing statement maintaining the possibility of future business relations

8. Signature Block: Full name, title, and contact information of the authorized signatory