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A Trust Deed creates a legal arrangement where one party (the trustee) holds and manages assets on behalf of another party (the beneficiary) in Saudi Arabia. It's commonly used in Islamic finance structures to ensure Shariah compliance, particularly in Sukuk transactions and real estate investments.

Under Saudi law, Trust Deeds must clearly state the assets involved, the trustee's powers and duties, and the beneficiaries' rights. They're especially important in the Kingdom's growing financial sector, where they help protect investors' interests while maintaining compliance with both civil law and Islamic principles. Banks and investment firms often use them to structure complex financial deals.

Use a Trust Deed when establishing investment structures that need to comply with both Saudi civil law and Shariah principles. This legal tool proves essential for Sukuk issuances, real estate investment funds, and family wealth management arrangements where assets must be held and managed by a trustee for specific beneficiaries.

Trust Deeds become particularly valuable during major financial transactions, Islamic banking arrangements, or when setting up charitable endowments (Waqf). They offer clear governance frameworks for asset management while protecting the interests of all parties involved. Many Saudi financial institutions require them for structured finance deals exceeding certain thresholds or involving multiple stakeholders.

• Real Estate Trust Deeds: Used in property financing and development projects, these specify how trustees manage and develop real estate assets under Shariah-compliant structures
• Sukuk Trust Deeds: Essential for Islamic bond issuances, outlining the trustee's role in managing underlying assets and profit distribution
• Family Trust Deeds: Common in wealth management, these govern intergenerational asset transfers while maintaining Islamic inheritance principles
• Charitable Trust Deeds (Waqf): Structure permanent charitable endowments, detailing asset management and beneficiary distributions according to Islamic law
• Investment Fund Trust Deeds: Used by Saudi financial institutions to establish Shariah-compliant investment vehicles and mutual funds

• Trustees: Banks, financial institutions, or qualified individuals who manage assets and execute the trust's terms according to Saudi law and Shariah principles
• Beneficiaries: Individuals, families, or organizations who receive benefits from the trust assets, including investment returns or property rights
• Legal Advisors: Saudi-licensed lawyers who draft and review Trust Deeds to ensure compliance with local regulations and Islamic finance requirements
• Shariah Scholars: Religious experts who certify the trust structure's compliance with Islamic principles
• Regulators: Saudi government authorities, including SAMA and CMA, who oversee trust arrangements and enforce compliance

• Asset Details: Document all properties, investments, or assets to be held in trust, including their current market values and ownership records
• Trustee Information: Gather credentials and qualifications of the proposed trustee, ensuring they meet Saudi regulatory requirements
• Beneficiary Data: List all beneficiaries with their identification details and intended benefits or rights under the trust
• Shariah Compliance: Outline the Islamic financial principles governing the trust structure and asset management
• Regulatory Checks: Verify compliance with SAMA and CMA regulations, especially for financial sector trusts
• Distribution Rules: Define clear terms for profit sharing, asset distribution, and trust termination conditions

• Trust Purpose: Clear statement of objectives and Shariah-compliant structure of the trust arrangement
• Asset Schedule: Detailed description of all properties and assets placed in trust, including current valuations
• Trustee Powers: Specific authorities granted to trustees for asset management and decision-making
• Beneficiary Rights: Precise terms of benefit distribution and conditions for receiving trust proceeds
• Duration Terms: Clear start date and conditions for trust termination or transfer
• Governing Law: Express reference to Saudi law and applicable Shariah principles
• Dispute Resolution: Mechanisms for handling conflicts under Saudi jurisdiction

A Trust Deed differs significantly from a Declaration of Trust in several key aspects under Saudi law. While both documents relate to trust arrangements, they serve distinct purposes and are used in different scenarios.

• Legal Structure: Trust Deeds create comprehensive trust arrangements with detailed terms for asset management, while Declarations of Trust simply acknowledge existing trust relationships
• Scope and Detail: Trust Deeds contain extensive provisions for trustee powers, beneficiary rights, and asset management protocols, whereas Declarations typically offer basic confirmation of trust ownership
• Timing and Purpose: Trust Deeds establish new trust arrangements, while Declarations document existing ones, often used for quick confirmations in property or investment matters
• Shariah Compliance: Trust Deeds require detailed Islamic finance structuring, while Declarations may need less extensive Shariah considerations depending on their use