Pledges, real estate mortgages and assignments are the primary forms of security available in Saudi Arabia. Their characteristics are set out in question 2, including, in the case of pledges and real estate mortgages, recent changes brought about by legislation.

Types of collateral regularly secured include:

• money held in a bank account, which is typically secured using a bank account pledge that contains a concurrent assignment of the sums standing to the credit of that account. Borrowers make periodic restatements of the assignment of a fluctuating balance as:

• Saudi Arabian law does not recognise the floating charge concept; and

• only absolute, unconditional and ascertainable assets can be assigned. This mechanism is untested. Financiers taking the benefit of such security typically require the pledged account to be maintained with their institution. This allows the financier to rely on a contractual set-off right (which is itself an uncertain legal concept);