Ƶ

Commercial Finance Agreement Template for Saudi Arabia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Commercial Finance Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Commercial Finance Agreement

"I need a Commercial Finance Agreement for a SAR 50 million Murabaha facility between Al Riyadh Bank and Tech Solutions LLC, to finance the purchase of manufacturing equipment with delivery expected in March 2025."

Document background
The Commercial Finance Agreement serves as a fundamental instrument for facilitating business financing in Saudi Arabia's Islamic banking framework. This document is essential when businesses seek funding for operations, expansion, or specific projects while ensuring compliance with Sharia principles. It outlines the complete financing relationship, including facility amounts, profit mechanisms, payment schedules, and security arrangements. The agreement must comply with Saudi Arabian legislation, including the Banking Control Law, SAMA regulations, and Islamic banking requirements. It's particularly important that the Commercial Finance Agreement incorporates appropriate Sharia-compliant structures (such as Murabaha or Ijara) instead of conventional interest-based financing. The document is designed to protect both the financial institution's rights and the business entity's interests while maintaining adherence to local laws and religious principles.
Suggested Sections

1. Parties: Identification of the finance provider and the customer, including their full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the financing arrangement, including the purpose of the facility and confirmation of Sharia compliance

3. Definitions: Key terms used throughout the agreement, including financial terms, Sharia-compliant concepts, and technical definitions

4. Facility Details: Description of the financing facility, including type, amount, purpose, and Sharia structure (e.g., Murabaha, Ijara, etc.)

5. Conditions Precedent: Prerequisites that must be satisfied before the facility becomes available

6. Utilization: Process and requirements for drawing down the facility

7. Payment Provisions: Payment terms, profit rates (avoiding interest), payment dates, and calculation methods

8. Customer Representations and Warranties: Standard and transaction-specific representations and warranties

9. Customer Undertakings: Positive and negative covenants, including Sharia compliance obligations

10. Events of Default: Circumstances constituting default and consequences

11. Security: Details of security arrangements and guarantees

12. Costs and Expenses: Allocation of costs, fees, and expenses

13. Notices: Communication procedures between parties

14. Assignment and Transfer: Rights and restrictions regarding transfer of rights and obligations

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

Optional Sections

1. Syndication Provisions: Required for syndicated facilities involving multiple lenders

2. Currency Provisions: Required for cross-border transactions or multiple currency facilities

3. Islamic Insurance (Takaful): Required when specific insurance requirements are needed for the financed assets

4. Agency Provisions: Required in syndicated facilities or where an agent is appointed to manage the facility

5. Additional Security Rights: Required for complex security arrangements or multiple assets

6. Third Party Rights: Required when rights are granted to persons who are not parties to the agreement

7. Regulatory Compliance: Required for regulated entities or specific regulatory requirements

8. Force Majeure: Optional provisions for unforeseen circumstances affecting performance

Suggested Schedules

1. Facility Terms: Detailed terms of the facility including amounts, profit rates, and payment schedules

2. Form of Utilization Request: Standard form for requesting drawdown of the facility

3. Conditions Precedent Documents: List of required documents and conditions

4. Security Documents: Forms of security documents and guarantees

5. Form of Compliance Certificate: Template for periodic compliance certification

6. Calculation of Profit Rate: Detailed methodology for calculating Sharia-compliant profit

7. Administrative Details: Contact details and account information for all parties

8. Form of Transfer Certificate: Standard form for transferring rights and obligations

9. Assets Schedule: Detailed list of assets being financed or provided as security

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions























































Clauses






























Relevant Industries

Banking & Financial Services

Manufacturing

Real Estate & Construction

Retail & Consumer Goods

Technology & Telecommunications

Healthcare

Energy & Utilities

Transportation & Logistics

Industrial & Engineering

Agriculture & Food Production

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Islamic Banking

Credit

Commercial

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Islamic Finance Specialist

Commercial Director

Corporate Banking Manager

Credit Risk Officer

Financial Controller

Business Development Manager

Corporate Finance Manager

Managing Director

Chief Executive Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Litigation Finance Contract

A Sharia-compliant litigation funding agreement under Saudi Arabian law, establishing terms for third-party financing of legal proceedings.

find out more

Contract For Private Loan

A Sharia-compliant private loan agreement under Saudi Arabian law, establishing terms and conditions for lending without interest.

find out more

Loan Agreement Between Individuals

A Sharia-compliant personal loan agreement under Saudi Arabian law, establishing terms and conditions for lending between individuals without interest.

find out more

Loan Agreement Document

A Sharia-compliant loan agreement under Saudi Arabian law establishing terms and conditions for financing arrangements between lender and borrower.

find out more

Hand Loan Agreement

A Sharia-compliant interest-free loan agreement under Saudi Arabian law that documents the terms and conditions of a hand loan between parties.

find out more

Litigation Funding Agreement

A Sharia-compliant agreement under Saudi Arabian law establishing terms for third-party funding of litigation, including funding commitments, success fees, and proceed distributions.

find out more

Loan For Use Agreement

A Saudi Arabian law-governed agreement for the temporary, gratuitous loan of an asset, structured in compliance with Sharia principles.

find out more

Loan And Mortgage Agreement

A Sharia-compliant Loan and Mortgage Agreement for use in Saudi Arabia, combining Islamic financing principles with property security arrangements under Saudi law.

find out more

Vehicle Finance Contract

Sharia-compliant vehicle financing agreement under Saudi Arabian law, establishing terms between financial institution and customer for vehicle purchase financing.

find out more

Bridge Facility Agreement

A Saudi Arabian law-governed financing agreement providing temporary funding pending longer-term financing arrangements, structured to comply with local laws and Shariah principles.

find out more

Bank Guarantee Agreement

A Sharia-compliant bank guarantee contract under Saudi Arabian law where a bank guarantees payment to a beneficiary upon the principal debtor's default.

find out more

Auto Loan Contract

A Shariah-compliant auto loan agreement under Saudi Arabian law for vehicle financing through Islamic banking principles.

find out more

Commercial Finance Agreement

A Sharia-compliant commercial financing agreement under Saudi Arabian law establishing terms for business funding arrangements and security provisions.

find out more

Lending Loan Agreement

A Sharia-compliant loan agreement under Saudi Arabian law establishing terms and conditions for lending arrangements between parties, incorporating Islamic finance principles and local regulatory requirements.

find out more

Business Funding Agreement

A Shariah-compliant business funding agreement under Saudi Arabian law that establishes terms for providing and receiving business financing while ensuring compliance with local regulations and Islamic principles.

find out more

Financial Investment Agreement

Saudi Arabian-governed agreement establishing investment management relationships between financial firms and clients, ensuring compliance with both CMA regulations and Shariah principles.

find out more

Debenture Loan Agreement

A Shariah-compliant secured lending agreement under Saudi Arabian law, establishing terms for debenture issuance and related security arrangements.

find out more

Financial Contract Agreement

Saudi Arabian financial agreement template incorporating Islamic finance principles and local banking regulations, suitable for various financial arrangements under Saudi law.

find out more

Debt Facility Agreement

A Shariah-compliant debt facility agreement under Saudi Arabian law, establishing terms for Islamic financing arrangements while ensuring compliance with local regulations.

find out more

Loan And Security Agreement

A Shariah-compliant financing and security agreement under Saudi Arabian law, combining lending terms with security arrangements over assets.

find out more

Financial Management Agreement

A Saudi Arabian law-governed agreement establishing terms for professional financial management services, compliant with CMA regulations and Shariah principles.

find out more

Guarantee Facility Agreement

A Sharia-compliant agreement under Saudi Arabian law establishing terms for issuing bank guarantees, including rights, obligations, and fee structures.

find out more

Finance Contract

A Shariah-compliant finance contract under Saudi Arabian law establishing terms for Islamic financing arrangements and regulatory compliance.

find out more

Car Loan Contract

A Sharia-compliant car loan agreement under Saudi Arabian law, establishing terms for vehicle financing between a financial institution and borrower.

find out more

Family Loan Agreement

A Sharia-compliant Family Loan Agreement under Saudi Arabian law, facilitating interest-free lending between family members while protecting all parties' rights.

find out more

Business Loan Agreement

A Sharia-compliant business loan agreement under Saudi Arabian law, establishing terms and conditions for commercial financing between a financial institution and a business entity.

find out more

Shareholder Loan Agreement

A Saudi Arabian law-governed Shariah-compliant loan agreement between a shareholder and their company, documenting the terms of shareholder financing.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.