Bank Guarantee Confirmation Letter Template for Saudi Arabia

The Bank Guarantee Confirmation Letter is a crucial document in Saudi Arabian banking and commercial transactions, typically used when additional security or local bank confirmation is required for international or high-value transactions. This document becomes necessary when a beneficiary requires extra assurance about a bank guarantee's validity, particularly when dealing with foreign banks or in large-scale projects. The confirmation letter, governed by Saudi Arabian law and SAMA regulations, provides an independent verification of the original guarantee's terms and conditions. It's commonly used in government contracts, major construction projects, and international trade transactions where the beneficiary seeks comfort from a local Saudi bank regarding the enforceability of a guarantee issued by a foreign bank. The document must adhere to Islamic banking principles and include specific confirmations required under Saudi banking regulations.

1. Letter Header and Date: Official letterhead of the confirming bank, date, and reference number

2. Addressee Details: Full details of the beneficiary of the confirmation letter

3. Original Guarantee Reference: Clear identification of the original bank guarantee including reference number, date, amount, and issuing bank

4. Confirmation Statement: Express confirmation of the bank guarantee's validity and the confirming bank's commitment

5. Terms and Conditions: Specific terms of the confirmation including duration, amount, and any conditions

6. Sharia Compliance Statement: Declaration of compliance with Islamic banking principles

7. Authorized Signatures: Signature block for authorized bank officials