Document background
The Finance Lease Agreement serves as a crucial financial instrument in Saudi Arabia's business landscape, enabling companies to acquire necessary assets while maintaining Shariah compliance. This document is typically used when a business needs to obtain expensive equipment, vehicles, or other capital assets without an outright purchase, structuring the transaction as a lease with potential ownership transfer. The agreement must comply with Saudi Arabia's Finance Lease Law, SAMA regulations, and Islamic finance principles, making it distinct from conventional leasing arrangements. The Finance Lease Agreement includes comprehensive provisions covering asset specifications, payment terms, maintenance responsibilities, insurance requirements, and end-of-lease arrangements, while ensuring all terms align with local regulatory requirements and Shariah standards.
