Document background
Deeds of Guarantee are essential instruments in Saudi Arabian commercial transactions, providing security and assurance in business relationships while adhering to Islamic principles. These documents are commonly used in various scenarios including project financing, commercial leases, construction contracts, and general business transactions. A Deed of Guarantee must be carefully structured to ensure compliance with both Saudi commercial law and Shariah requirements, making it particularly important to include appropriate Islamic finance concepts and terminology. The document serves as a binding commitment where the guarantor assumes responsibility for the principal debtor's obligations, subject to specific conditions and limitations. Given Saudi Arabia's unique legal framework, these guarantees must be drafted to be enforceable in Saudi courts while maintaining their commercial efficacy.
