Document background
The Revolving Credit Agreement is a fundamental financing document used in Saudi Arabia when a borrower requires flexible access to funding over an extended period. This agreement enables the borrower to draw down funds multiple times up to an agreed limit, repay, and reborrow during the facility period. Given Saudi Arabia's legal framework, the agreement must be structured to comply with both Shariah principles and local banking regulations, typically utilizing Islamic financing structures such as Commodity Murabaha or Wakala to avoid conventional interest (riba). The document encompasses key provisions including facility terms, profit calculations, conditions precedent, representations, covenants, and events of default, while incorporating necessary Shariah compliance provisions and SAMA regulatory requirements. It is particularly useful for businesses with fluctuating capital needs or those requiring working capital facilities.
