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The Sale With Buyback Agreement is commonly used in Saudi Arabia as a Sharia-compliant financing alternative to conventional lending arrangements. This document is particularly relevant when businesses or individuals need to raise capital while retaining the ability to reclaim their assets in the future. The agreement must be carefully structured to comply with both Saudi Arabian commercial law and Islamic finance principles, ensuring that the transaction represents a genuine sale rather than a disguised loan. It includes detailed provisions for the initial sale, asset maintenance, and buyback terms, along with necessary Sharia compliance certifications. The document is frequently used in commercial property transactions, equipment financing, and various industrial sectors where significant assets are involved. Key considerations include proper asset valuation, transfer mechanisms, and risk allocation between parties.

1. Parties: Identification of the seller and buyer, including their full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the transaction, including the nature of the asset and the parties' intention to enter into a Sharia-compliant sale with buyback arrangement

3. Definitions: Key terms used throughout the agreement, including Asset, Purchase Price, Buyback Date, Buyback Price, and other relevant terminology

4. Sale and Purchase: Terms of the initial sale, including asset description, purchase price, and transfer mechanics

5. Payment Terms: Details of how and when the initial purchase price will be paid

6. Asset Transfer: Mechanics and timing of the asset transfer, including delivery and acceptance procedures

7. Buyback Terms: Specific terms of the buyback arrangement, including timing, price, and execution process

8. Representations and Warranties: Standard and transaction-specific representations from both parties, including Sharia compliance confirmations

9. Asset Maintenance: Responsibilities for maintaining the asset during the period between sale and buyback

10. Default and Remedies: Consequences of default by either party and available remedies

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant dispute resolution mechanisms

12. Notices: Communication procedures between parties

13. General Provisions: Standard boilerplate clauses adapted for Saudi law requirements