Document background
The Credit Sale Agreement is a fundamental document in Islamic finance transactions within Saudi Arabia, used when a seller (typically a financial institution) sells an asset to a buyer with payment to be made in installments over time. This structure is commonly used as an alternative to conventional interest-bearing loans, ensuring compliance with Islamic Shariah principles while providing financing solutions. The agreement must be drafted in accordance with Saudi Arabian law and SAMA regulations, incorporating specific provisions for profit calculation, payment terms, and security arrangements. It's particularly relevant for asset financing, equipment purchases, and real estate transactions where immediate full payment is not feasible. The document includes detailed sections covering asset description, payment schedules, security arrangements, and default provisions, all structured to ensure Shariah compliance while protecting the interests of all parties involved.
