Document background
Sale Leaseback Agreements are utilized in Saudi Arabia as a strategic financing tool that allows companies to unlock capital from their real estate assets while maintaining operational control through a long-term lease arrangement. This document type is particularly relevant in scenarios where organizations seek to improve their balance sheet structure or require significant capital injection while continuing their business operations uninterrupted. The agreement must navigate the unique aspects of Saudi Arabian law, including Sharia compliance requirements, real estate registration regulations, and commercial law provisions. It typically includes detailed provisions for property valuation, rental determinations, maintenance obligations, and future purchase options, all structured to ensure enforceability within the Saudi legal framework. The document serves as both a property transfer instrument and a long-term lease commitment, requiring careful consideration of both immediate transaction requirements and ongoing operational needs.
