Document background
The Convertible Note Purchase Agreement is a crucial financing instrument in Saudi Arabia's growing startup and scale-up ecosystem, aligned with Vision 2030's emphasis on private sector growth and innovation. This document is typically used when companies seek bridge financing or early-stage investment while deferring formal valuation. It must be structured to comply with both Saudi Arabian commercial law and Shariah principles, replacing conventional interest with acceptable profit-sharing mechanisms. The agreement details the terms of the investment, conversion mechanics, investor rights, and company obligations, while incorporating necessary provisions for regulatory compliance, including Capital Market Authority regulations and foreign investment rules where applicable. The document is particularly relevant in the context of Saudi Arabia's expanding venture capital market and increasing focus on technology and innovation sectors.
