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The Credit Support Agreement serves as a fundamental document in Saudi Arabian financial transactions, providing security for various financial obligations while ensuring compliance with both Saudi law and Shariah principles. It is typically used when one party (the Security Provider) agrees to provide credit support to secure the obligations of a debtor to a creditor (the Secured Party). The agreement is essential in various contexts, including project finance, corporate lending, and trade finance, and must be structured to avoid elements prohibited under Islamic law such as riba (interest) and gharar (excessive uncertainty). The document includes detailed provisions regarding the nature of the security, enforcement mechanisms, and compliance with Saudi Arabian Monetary Authority (SAMA) regulations. Given the jurisdiction's unique legal framework, special attention is paid to ensuring enforceability under local laws and compatibility with Islamic finance principles.

1. Parties: Identification of the Security Provider and the Secured Party/Beneficiary

2. Background: Context of the agreement, reference to underlying obligations and Shariah compliance declaration

3. Definitions and Interpretation: Key terms, construction rules, and references to relevant laws and regulations

4. Security Interest Creation: Establishment of the security interest in compliance with Saudi law and Shariah principles

5. Secured Obligations: Description of the obligations being secured, ensuring Shariah-compliant structure

6. Representations and Warranties: Standard and Shariah-specific representations regarding authority, ownership, and compliance

7. Covenants: Ongoing obligations of the Security Provider regarding the collateral and maintenance of security

8. Enforcement Events: Circumstances allowing enforcement of security, aligned with Saudi law requirements

9. Enforcement Rights and Remedies: Rights of the Secured Party upon occurrence of enforcement events

10. Powers of Attorney: Appointment provisions for enforcement purposes

11. Costs and Expenses: Allocation of costs in a Shariah-compliant manner

12. Notices: Communication procedures between parties

13. Assignment and Transfer: Provisions regarding transfer of rights and obligations

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