Digital Promissory Notes in Saudi Arabia: What Lenders Need to Know About the Nafith Platform and the New Enforcement Law

Saudi Arabia has issued a new Enforcement Law under Royal Decree No. M/237 dated 3/11/1447H (20 April 2026), following Council of Ministers Resolution No. 746 dated 26/10/1447H (14 April 2026). Published on Umm Al-Qura official newspapers 14/11/1447H (corresponding with 28 April 2026) The law will replace the current Enforcement Law and its Implementing Regulations and introduces a significant change for lenders: promissory notes will need to be registered electronically on a national platform, currently Nafith, to qualify as enforcement instruments.

As of this alert, the law has not yet been published in the Official Gazette and is not yet in force. It will take effect 180 days after publication which means October 25, 2026. Lenders should use the transition period to assess their promissory note portfolios, Nafith access and documentation.

Promissory notes and Nafith: key considerations for lenders 

• Electronic registration: Under the new regime, bills of exchange and promissory notes will be directly enforceable only if registered on a national electronic platform, currently Nafith. A paper-based promissory note will not be directly enforceable once the transition period ends.
• Paper-note transition: Existing paper-based promissory notes may remain enforceable for one year after the new law takes effect, provided they satisfy the other statutory requirements. Digital conversion is recommended during that period rather than waiting until the grace period expires.
• Current Nafith availability: Nafith is currently live for individuals and sole proprietorships. Digital promissory notes for SMEs, LLCs and joint stock companies are expected to become available within approximately one month or two months, subject to rollout and formal confirmation.
• Registration and onboarding: The entity must be registered in Saudi Arabia and have a unified commercial registration (CR) number. Nafith onboarding also requires a valid Zakat certificate, tax certificate and Chamber of Commerce authorization.
• Foreign banks and entities: Nafith currently does not support foreign banks or other entities without a Saudi presence. The Nafith team acknowledged demand and indicated that participation by foreign entities is being considered for future phases, but no timing, structure or availability has been confirmed.
• Paper-to-digital conversion: Nafith is developing an upload process for existing paper promissory notes, with automated extraction and population of the relevant data. Approval requirements, validation and fraud-prevention controls are being developed with banks and the Ministry of Justice, and the process should not be treated as final until formally announced.
• Guarantors: A feature combining a promissory note with a guarantee, including the types of guarantor arrangements commonly used in financing transactions, is under study but has not been confirmed.
• Authorized signatories: Company representatives are verified through the Wathiq system, and Nafith supports multiple commissioners per company for approval of a promissory note.
• SAMA guidance: Further guidance for banks from the Saudi Central Bank (SAMA) is expected by October 2026. Banks should monitor official communications and Nafith announcements before finalizing operational procedures.
• Other Changes: The new Enforcement Law also addresses foreign judgments, asset tracing and the use of licensed private-sector enforcement service providers. These topics remain relevant to broader recovery planning.

In practice, lenders should inventory existing paper promissory notes, identify borrowers and finance structures that can be onboarded to Nafith today, and prepare for the anticipated corporate rollout and paper-to-digital process. Particular care is warranted for foreign-bank structures and arrangements involving guarantors or endorsements, because the relevant Nafith functionality is not yet available or finalized.

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