Document background
The Home Equity Line Agreement is a specialized financial instrument used in the Saudi Arabian market when property owners seek to utilize their existing property equity for additional financing while maintaining Shariah compliance. This document is essential in markets where conventional home equity products are not permissible due to religious and regulatory requirements. The agreement outlines the Shariah-compliant structure of the facility, property valuation requirements, credit limits, drawdown procedures, and security arrangements. It ensures compliance with Saudi Central Bank (SAMA) regulations, local property laws, and Islamic banking principles. The document is particularly relevant in the current Saudi market as property owners increasingly seek flexible financing options that align with both their religious values and financial needs.
