Document background
The Company Loan Agreement is essential for corporate financing transactions in Saudi Arabia, where all financial dealings must comply with Islamic Shariah principles and local regulations. This document is used when a company seeks to obtain financing from a financial institution or another corporate entity, structured in a Shariah-compliant manner. It covers crucial elements including the facility amount, profit rate mechanism, security arrangements, representations and warranties, and covenants. The agreement must align with Saudi Arabian law, particularly the Commercial Courts Law, Companies Law, and SAMA regulations, while incorporating appropriate Islamic financing structures such as Murabaha or Ijarah. It's typically used for corporate expansions, working capital needs, asset acquisition, or project financing, and requires careful consideration of both commercial and Shariah compliance aspects.
