Promissory Note Format Saudi Arabia: 7 Legal Requirements

You lent a relative SAR 30,000. He opened a "promissory note" template on his phone that he downloaded from the internet, wrote the amount, signed it and gave you the paper. A year later he is late paying. You show the paper to a lawyer, who finds it has no date of issue and no clear name of the beneficiary. The paper you thought was ready for enforcement is now open to argument. Two minutes of checking at the time of signing would have been enough.

The short answer: a valid promissory note (sanad li amr) needs the seven details listed in Article 87 of the Commercial Papers Law: the words "promissory note", an unconditional promise to pay a fixed amount, the due date, the place of payment, the beneficiary's name, the date and place of issue, and the signature of the person who issues it.

The Enforcement Law of 1433H is the law in force today. The new Enforcement Law was published on 14/11/1447H (1 May 2026) and comes into force 180 days after publication (around 28 October 2026). Under the new law, a promissory note is an "executive instrument" (a document enforceable directly at the Enforcement Court) only if it is registered on the national electronic platforms. Paper notes issued before the new law takes effect and meeting the legal conditions remain executive instruments for one year after it takes effect (Clause Five of Royal Decree M/237).

What is a promissory note in Saudi Arabia?

A promissory note is a document in which one person (the maker or issuer) promises to pay a fixed amount to another person (the beneficiary) or to their order. No bank pays on anyone's behalf, as with a cheque. The maker personally is the one who must pay. Article 90 of the Commercial Papers Law makes the maker liable in the same way as the acceptor of a bill of exchange, meaning the maker is the main debtor on the note.

A note is usually written because of another deal: a loan, the price of goods, or a balance still owed. So keep the deal contract and transfer receipts together with the note. They explain why the debt exists if a dispute arises.

What details must a promissory note contain?

Article 87 of the law lists seven details:

• The order clause, or the words "promissory note" written in the body of the note itself, in the language in which it is written.
• An unconditional promise to pay a fixed sum of money.
• The due date.
• The place of payment.
• The name of the person to be paid, or to whose order payment is made.
• The date and place of issue.
• The signature of the person who issues the note (the maker).

ID number, mobile number and address help identify the parties, but they do not replace any of these details. Witnesses are not a condition for validity. The law does not mention them at all.

Is the note invalid if a detail is missing?

The general rule in Article 88 is that a paper missing one of these details is not a promissory note, except in three cases the law deals with:

• If it has no due date, it is payable on sight (when presented).
• If it has no place of payment or maker's address, the place of issue is treated as the place of payment and the maker's address.
• If it has no place of issue, it is treated as issued at the place shown next to the maker's name.

A missing amount, signature, beneficiary name or date of issue is not cured by the law. But losing its status as a commercial paper does not mean the debt is gone. The Implementing Regulations of the Enforcement Law (paragraph 9/4) state that if a condition for validity of a commercial paper is missing, it may still be treated as an ordinary document under Article 15 of the law, where the debtor is asked to acknowledge its contents. If the debtor does not acknowledge it, the creditor can still file a lawsuit on the debt itself. This is under the current Enforcement Law. The new law does not list acknowledged ordinary documents among executive instruments (Article 7), so after it takes effect the route will be a lawsuit on the debt itself.

Which drafting mistakes ruin a promissory note?

What harms a note most is often not a missing detail, but wording that changes its nature:

• Making payment depend on an event, such as "I will pay if I sell the land". The law requires an unconditional promise. Setting a due date is not a condition.
• Putting successive instalments in one note. Article 38 makes a bill of exchange invalid if it has successive due dates, and this applies to promissory notes through Article 89. The correct way is a separate note for each instalment.
• Adding interest to the amount. An interest clause is treated as if it was never written, under Article 6 as applied to notes.
• Different amounts in figures and words. If they differ, the amount in words prevails. If the amount is repeated in different figures, the lower amount prevails (Article 5).
• An employee signing for a company without authority. A person who signs for someone else without authority, or beyond their authority, is personally bound by the note (Article 10).

Also note that a Saudi national is not legally capable of being bound by a bill of exchange, and likewise a promissory note, until the age of eighteen (Article 7).

Khalid agrees to lend Saad SAR 30,000, to be repaid in three payments every four months.

Safe drafting: three notes, each for SAR 10,000 with its own due date, plus a loan contract that refers to them.

When Saad pays the first instalment, he takes back the first note or it is marked as paid. Article 44 allows partial payment to be recorded on the note itself, together with a receipt.

This way Khalid does not keep a note for a debt that has been paid, and nobody is confused about the balance.

Paper note or electronic note on Nafith?

Nafith is the national platform for creating and registering electronic promissory notes. It creates the note with the elements required by the Commercial Papers Law, so there is less risk of missing details or losing the original. This difference will soon matter more. The new Enforcement Law published on 14/11/1447H, in force 180 days after publication, treats promissory notes as executive instruments when they are registered on the national electronic platforms (Article 7), and its regulations will set the registration conditions. A paper note issued before the new law takes effect and meeting its conditions stays an executive instrument for one year after the law takes effect, even if not registered, under Clause Five of Royal Decree M/237. So if you are documenting a debt today, the safer choice is a registered electronic note.

This is general information based on the official Arabic texts of Saudi laws, which prevail over any translation. It is not legal advice for your specific case.

Practical solutions for both sides

If you are the beneficiary (creditor):

• Check the seven details before you accept the paper, especially your name, the date and place of issue, and the signature.
• Ask for a separate note for each instalment. Do not accept one note with successive due dates.
• If the maker signs for a company, ask for proof of the authority to sign.
• Keep the deal contract and the receipt for the money you handed over together with the note.
• Prefer an electronic note registered on Nafith over a handwritten paper.

If you are the maker (debtor):

• Do not sign a form with blanks. Write the amount in words and figures yourself.
• Make sure the due date is the one you actually agreed.
• Pay by bank transfer that mentions the note number, and ask for a receipt for each payment.
• When you pay in full, take back the note or get proof that it is closed on the platform.

If you have a note you have not signed yet, or one whose wording worries you, send us a photo of it on WhatsApp and we will check its details with you before a real dispute starts.