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The Debt Letter is a crucial document in Saudi Arabian commercial and financial transactions, used to formally document and acknowledge debt obligations between parties. This document type is particularly important in a jurisdiction where Sharia law principles must be observed, especially regarding the prohibition of interest (riba). The Debt Letter includes essential information such as the principal amount, payment schedule, parties' details, and enforcement provisions, all structured to comply with Saudi legal requirements. It serves multiple purposes, from simple acknowledgment of personal debts to complex commercial financing arrangements, and can be used in conjunction with security documents or guarantees. The letter's format and content must adhere to both the Commercial Courts Law and Enforcement Law of Saudi Arabia, making it enforceable in Saudi courts.

1. Date and Place: The date of issuance and location where the letter is executed

2. Parties Information: Full legal names, addresses, and identification numbers of both creditor and debtor

3. Debt Acknowledgment: Clear statement acknowledging the exact amount of debt and its origin

4. Payment Terms: Detailed payment schedule and method, ensuring compliance with Sharia principles

5. Default Provisions: Consequences of non-payment in accordance with Saudi law

6. Governing Law Statement: Confirmation that Saudi law and Sharia principles govern the letter

7. Signature Block: Space for signatures, witnesses, and any required attestations