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The Letter of Refusal is a crucial business document used in Saudi Arabian commercial practice to formally decline proposals, offers, or requests. This document type is essential in situations where organizations or individuals need to communicate a negative response while maintaining professional relationships and complying with local legal requirements. The Letter of Refusal must be drafted with careful attention to Saudi Arabian commercial law, Islamic business principles, and local business customs. It typically includes formal acknowledgment of the original proposal, clear reasoning for the refusal, and appropriate professional courtesy. The document serves both as a legal record and a business communication tool, often used in procurement processes, contract negotiations, partnership proposals, or employment-related matters. Given the importance of relationships in Saudi business culture, the letter should be crafted to leave doors open for future business opportunities while maintaining clear and unambiguous communication about the current refusal.

1. Header Information: Complete contact information of both sender and recipient, including full names, titles, company names, and addresses

2. Date and Reference: Current date and reference numbers of any previous correspondence or proposals being refused

3. Formal Salutation: Appropriate formal greeting in accordance with Saudi business etiquette

4. Acknowledgment: Recognition of the received proposal/request with relevant dates and details

5. Clear Statement of Refusal: Direct but polite statement of refusal or rejection

6. Primary Reason: Main justification for the refusal, stated professionally and clearly

7. Formal Closing: Professional closing statement maintaining possibility of future business relations

8. Signature Block: Full name, title, and contact information of the authorized signatory