Promissory notes are an important part of financing transactions
in the Kingdom of Saudi Arabia as it is a relatively simple, easy
to understand, easy to transfer through an endorsement and fast to
enforce. The Commercial Papers Law issued by Royal Decree number 37
dated 11/10/1383H (corresponding to 24/02/1964G) ("Commercial
Papers Law") regulates the issuance of promissory notes in
Kingdom of Saudi Arabia and as such if promissory notes are not
issued in conformity to the aforementioned Commercial Papers Law
then it may not be possible to enforce such promissory notes.
In order to further facilitate the financing transactions in the
Kingdom of Saudi Arabia, the government has introduced the Nafith
platform which is an online platform that allows businesses and
individuals to issue electronic promissory notes securely and
digitally. It is an innovative step taken by SAMA towards
digitizing financial transactions in the Kingdom.
