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The Simple Money Lending Agreement is a fundamental legal document used in Saudi Arabia to formalize lending arrangements between parties while ensuring compliance with Islamic finance principles and Saudi regulations. This document is typically used when one party (the Lender) agrees to provide financial assistance to another party (the Borrower) under Sharia-compliant terms. It includes essential elements such as the principal amount, profit structure, repayment terms, and any security arrangements, all structured to comply with Islamic banking principles that prohibit conventional interest (Riba). The agreement is particularly useful for businesses, individuals, and financial institutions operating in Saudi Arabia who need to document lending arrangements in a manner that is both legally enforceable under Saudi law and religiously permissible under Islamic law.

1. Parties: Identification of the Lender and Borrower with full legal names, addresses, and any registration numbers

2. Background: Context of the lending arrangement and confirmation of Sharia compliance

3. Definitions: Key terms used throughout the agreement, including Islamic finance terminology

4. Principal Amount: The amount being lent and confirmation that it has been or will be transferred

5. Profit Structure: Sharia-compliant profit arrangement replacing conventional interest

6. Payment Terms: Schedule of repayments including dates and amounts

7. Method of Payment: Acceptable payment methods and account details

8. Security: Details of any security or collateral provided for the loan

9. Representations and Warranties: Statements of fact by both parties regarding their capacity and authority

10. Events of Default: Circumstances constituting default and consequences

11. Termination: Conditions and process for early termination

12. Governing Law and Jurisdiction: Confirmation of Saudi law governance and jurisdiction