A promissory note is a written, unconditional promise by one person or business to pay a fixed sum to another, or to their order, on a set date or on demand. In Saudi Arabia it is governed by the Commercial Papers Law, which lists seven statements every note must carry. Fill in the promissory note template above and it is ready to print with the amount in figures and in words, next to a checklist showing which statements are complete. Further down you will find a blank form for repeat credit sales and the general steps for an electronic note on Nafith.
How to fill in the promissory note template
- Pick a tab: "Business note" when the debtor is an establishment or company, "Personal note" when the debtor is an individual, or "Blank form to print" for sheets you fill in by hand.
- Type the amount in figures. The note writes it out in words, ending in "only", in riyals and halalas.
- Enter the maker (debtor) and the payee (creditor) exactly as they appear on the ID card or commercial registration.
- Set the city and date of issue, then the due date, or leave the due date empty to make the note payable on demand.
- Check the list of seven statements under the note, then download and print it. The maker signs it by hand.
The "More details" switch adds a note number, the maker's CR or ID number, the payee's ID, the maker's address, the reason for the debt and a guarantor box. The law does not need these for the note to be valid, but they make it far easier to identify each party if you ever have to claim.
Essential elements of a promissory note under Saudi law
Article 87 of the Commercial Papers Law sets out seven statements a promissory note contains, and the template covers all of them:
| Statement | Where it appears in the template |
|---|---|
| The words "promissory note" in the body of the instrument, in the language it is written in | The heading, and "Under this promissory note" in the text |
| An unconditional promise to pay a fixed sum of money | "unconditionally promise to pay … the sum of", in figures and in words |
| The due date | The date you enter, or "on demand" |
| The place of payment | The city of issue, or the place you enter under More details |
| The name of the person to be paid, or to whose order | The payee's name |
| The date and place of issue | The line "Issued at … on …", in Gregorian and Hijri dates |
| The signature of the maker | The signature box, signed by hand after printing |
Article 88 says a note missing one of these is not a promissory note, with three exceptions: without a due date it is payable at sight; without a place of payment, the place of issue counts as the place of payment; and without a place of issue, the place shown next to the maker's name counts. That is why the tool lets you leave the due date empty but will not download a note with no amount, maker, payee or date of issue. Before relying on a note for a large sum, read the current text of the law published by the Bureau of Experts.
Promissory note vs bill of exchange (kambiala)
Many people in the Kingdom call a promissory note a "kambiala", which is the Arabic term for a bill of exchange, but the law treats them as two instruments. A bill of exchange is an order from the drawer to a third party, the drawee, to pay the payee, so it has three parties. A promissory note is the maker's own promise to pay, so it has two. The sheet a buyer signs for a seller when buying on credit is a promissory note, even when the market calls it a kambiala form.
The bill of exchange rules on maturity, endorsement and guarantee apply to promissory notes as far as they fit their nature. This is why a guarantor (aval) on a promissory note backs the maker in the same way a guarantor on a bill of exchange backs the drawer.
Personal promissory notes: loans and sales between individuals
The "Personal note" tab writes the promise in the first person: "I, …, the undersigned". Choose Mr or Ms so the maker is named correctly on the note. Use it when one person lends money to another, or sells a car or furniture to be paid in instalments. Add the maker's national ID or Iqama number under More details, because a name alone can match someone else's.
If a loan is repaid in instalments, write one note per instalment with its own due date, since each note can carry only one maturity. A third person can guarantee the loan by signing in the guarantor box.
Electronic promissory notes on Nafith
Nafith is a government platform launched by the Ministry of Justice to issue enforceable instruments electronically, the promissory note among them, and to link them to the enforcement courts. An electronic note carries the same statements as a paper one, but instead of a handwritten signature both parties approve it online after verifying their identity through Nafath, the national single sign-on.
The general steps for issuing a note on Nafith are:
- Sign in on the platform's official website with your Nafath account.
- Choose to create a promissory note, then enter the amount, the due date and the other party's details (national ID, Iqama or CR number).
- Review the details and send the note to the other party.
- The debtor reviews the note and approves it online, and the approved note is stored on the platform.
The platform's screens and options change from time to time, so follow the instructions you see there and check the help section of the Nafith platform for any fees and for which note types are open to individuals and to companies. A new Enforcement Law has also been issued in Saudi Arabia; it is reported to make a promissory note directly enforceable only once it is registered on a national electronic platform, currently Nafith, with a transition period for existing paper notes. Check the published text and its effective date before you rely on a paper note for a large debt.
Checking promissory notes against you on Nafith and Najiz
Electronic notes issued in your name appear in your Nafith account once you sign in with Nafath, where you can see what you owe and the status of each note. A paper note does not show on any platform; the original stays with the payee. If payment is late, the payee files an enforcement request with the enforcement court online through Najiz, the Ministry of Justice portal, attaching the note.
Promissory notes with no due date, and how long a note stays valid
A note with no due date is payable at sight, meaning when the payee presents it to the maker and asks for payment. If that is what you agreed, write "on demand" on the note rather than leaving the field blank.
The right to claim does not stay open forever. The law sets a period after which a claim against the maker is time-barred, counted from the due date, and legal commentators put it at three years. Check the text of the law with the Bureau of Experts or a lawyer before you delay claiming on a note that has fallen due.
Promissory note template in PDF and Word
Once the note is filled in, download it as a PDF to print exactly as the preview shows, or as a Word file if you need to edit the wording or add a clause. The "Blank form to print" tab gives the same sheet with dotted lines, and if you enter your business as the payee, its name is printed on every copy. The first download opens a short form for your name, email and mobile once on this device; the note on the page stays visible either way.
Common mistakes when writing a promissory note
- The amount in words differs from the amount in figures. If they differ, the amount in words prevails, so read it before signing.
- Making payment conditional, such as "I will pay once the goods arrive". A conditional promise means the paper is no longer a promissory note.
- Leaving the payee blank, or writing a nickname or title that does not identify them.
- A due date that falls before the date of issue.
- Putting several instalments with different dates on one note.
- Keeping only a photocopy. A claim rests on the signed original, so store it safely.
What to do after you print the note
The maker signs in the signature box and stamps it if the maker is a business, and the guarantor signs in their box if there is one. The payee keeps the original and the maker keeps a copy. When the debt is paid, the payee hands the original back to the maker or writes on it that payment was received, and records the amount on a receipt voucher. You can prepare one with the receipt voucher generator.
When credit sales grow and collections slip
A promissory note protects one debt. Once you sell on credit to dozens of customers, the harder question is how much each one owes, what has fallen due, and what has actually been collected. At Microtec we offer businesses selling on credit across the Kingdom an ERP accounting system that keeps sales, purchasing, inventory, finance and HR together. Try it before your next collection season.