Document background
A Revolving Promissory Note is commonly used in Saudi Arabian commercial transactions where parties require flexible financing arrangements that comply with Islamic law. This document type is particularly useful when businesses need ongoing access to credit with the ability to draw down, repay, and redraw funds up to an agreed limit. The note must be structured to comply with Saudi Arabia's Commercial Papers Regulation and Sharia principles, which prohibit conventional interest but allow certain forms of profit-sharing and fees. The document typically includes specific details about the credit facility, payment obligations, and enforcement mechanisms, while maintaining the formal requirements of a promissory note under Saudi law. It's frequently used in trade financing, working capital arrangements, and other commercial financing situations where revolving credit is needed.
