# Appointing a distributor or commercial agent in Saudi Arabia, and writing the agreement

Many foreign companies sell in Saudi Arabia through a local distributor or commercial agent. Choose the partner first, then check its commercial registration and agree a written contract that covers territory, exclusivity, ending, your brand, payment and disputes. The agency is then registered with the Ministry of Commerce. Have the draft reviewed before you sign.

Published by RAED ALI ALJOHANI COMPANY FOR Lawyership and Legal Consultations · Last updated 2026-10-21. General information about Saudi law — not advice on your situation.

## At a glance

- **Who this is for:** Foreign manufacturers, brand owners and exporters about to appoint a Saudi distributor or commercial agent, and their in-house lawyers.
- **Can it be handled from outside Saudi Arabia?:** Yes. Usually. The agreement can be negotiated and signed from abroad, and a Saudi lawyer can act for you under a power of attorney. We tell you early if any step needs someone in person.
- **What usually decides the route:** How much control you want over sales in Saudi Arabia, whether you want one exclusive partner, and whether a company of your own fits better.
- **What you usually need first:** A short outline: your products, the partner you have in mind and the terms you are discussing. No documents yet.
- **First step with us:** Send a short outline by WhatsApp, phone or email, before you sign anything.


## Distributor, commercial agent or your own Saudi company: which fits?

It depends on how much control you want over sales in Saudi Arabia. A distributor or agent lets you start selling through a business that already operates there. A company of your own gives you more control, but takes longer to set up.

A commercial agent usually sells or represents your products for you. A distributor usually buys your products and resells them in its own name. This page uses "distributor" for both, unless the difference matters. You, the foreign company whose products are sold, are the principal.

Some companies start with a distributor and set up their own company later. If you are still comparing the options, see [the ways a foreign business can start working in Saudi Arabia](https://saudilaw.co/company-formation/). Import, customs and product approvals are separate questions, for the authorities concerned.

## What should a Saudi distribution or agency agreement cover?

It should cover what you sell, where, for how long, how it ends and where disputes go. Write it with the end in mind, because that is when weak clauses cost most. We look at these points in every draft:

- **Products and territory:** which products and services the agreement covers, and where the distributor may sell them.
- **Exclusivity:** whether only this distributor may sell your products in Saudi Arabia, and what it must achieve to keep that right.
- **Term and ending:** the start date, how long the agreement runs, how it is renewed and how either side can end it.
- **Your brand:** how the distributor may use your name, logo and marketing, and what stops when the agreement ends.
- **Payment security:** payment terms, credit limits and any security for payment, such as a bank guarantee.
- **After-sales:** who handles service, spare parts and warranties for your customers.
- **Stock at the end:** what happens to unsold stock if the agreement ends.
- **Help with deregistration:** the distributor's duty to help remove the registration when the agreement ends.
- **Disputes and language:** which court or arbitration body hears disputes, and which language version prevails.

The Ministry of Commerce's service page for registering an agency also lists what a registered contract must state. It includes the parties, the goods and services, the area and the duration, how the contract ends and is renewed, and which judicial body or country handles disputes. The ministry offers a guiding template on that page. We do not publish model clauses, because the right wording depends on your products and your partner.

If the relationship ever needs to end, see [ending a distributor agreement in Saudi Arabia](https://saudilaw.co/distributor-contractor-disputes/ending-a-distributor-agreement/).

## How is a commercial agency registered with the Ministry of Commerce?

According to the Ministry of Commerce, the agent or distributor applies through the ministry's online service, without visiting a branch. The application includes the signed contract. Ministry staff review the request. Once it is accepted and the government fee is paid, the registration certificate is printed electronically. The official page has the current fee.

According to the same service page, a contract with a foreign principal has to be certified before it is filed. Your country's apostille, or the chain of stamps called legalisation, is used for this. A contract that is not in Arabic is translated by an accredited translation office. See [whether your country uses an apostille or legalisation](https://saudilaw.co/documents-from-abroad/).

Saudi rules also set who can act as a registered commercial agent. The ministry's service page sets out the current rules, and we check them against your partner before you sign. The register itself is the [Commercial Agencies Register](https://saudilaw.co/glossary/).

## How do you check a Saudi distributor or agent before you sign?

Check the business on the official record first, then its track record. Two online services of the Ministry of Commerce help here:

- **Commercial registration data.** You can view a business's [commercial registration](https://saudilaw.co/glossary/commercial-registration/) (CR) data online, by its name or its unified national number.
- **Existing commercial agencies.** You can search the registered agencies by agency number, by the agent's name or number, or by the principal's name. This shows whether your brand is already registered to someone else.

Compare the registered name with the name on the draft contract. The name on an invoice is not always the registered one. Then look at what the business does, who runs it, and how it has served other brands.

## Can you appoint a Saudi distributor from outside Saudi Arabia?

Usually, yes. You can negotiate and sign the agreement from your head office. In Saudi Arabia, a Saudi lawyer can act for you under a [power of attorney](https://saudilaw.co/from-abroad/power-of-attorney/) that you sign in your own country.

We review the draft in both languages, check the partner and the register, and follow the filing with the distributor. If any step needs someone in person, we tell you early.

## How does appointing a Saudi distributor usually work, step by step?

Most appointments follow these steps, though not always in this order.

1. **Send us a short outline.** Tell us your products, the partner you have in mind and the terms you are discussing. Don't send documents yet.
2. **Sign the engagement letter.** The engagement letter is the written agreement between you and the firm; work starts only after it is signed. See [how we work with clients outside Saudi Arabia](https://saudilaw.co/how-we-work/).
3. **Check the partner and the register.** Look up its commercial registration and any agencies already registered for your brand. Where a lawyer helps: comparing the registered details with the draft contract.
4. **Agree the terms.** Settle territory, exclusivity, term and ending, your brand, payment and disputes. Where a lawyer helps: drafting or reviewing the agreement in both languages, with the end of the relationship in mind.
5. **Sign and certify the contract.** Certify the signed contract in your country, and have it translated into Arabic if needed.
6. **Register the agency.** The distributor files the registration with the Ministry of Commerce.

Contact: WhatsApp or phone +966 54 797 7285 · email office@raedlawyer.com · undefined

## How does a Saudi lawyer help when you appoint a distributor?

A Saudi lawyer helps most before you sign. We check the partner on the official record, read the draft against Saudi practice, and point out what is missing. That usually means the ending, the use of your brand, payment security and the dispute clause.

We also make sure the version you sign is the version that is registered. A mismatch between the two can cause problems later, especially if the agreement ever ends. If the contract names a foreign law or courts abroad, we work on the Saudi side and your lawyers at home can [work alongside us](https://saudilaw.co/for-advisers/).

If a partner later stops paying for goods, see [recovering an unpaid invoice from a Saudi company](https://saudilaw.co/debt-recovery/unpaid-invoices/). For disputes, see [arbitration, court or mediation](https://saudilaw.co/distributor-contractor-disputes/arbitration-or-court/).

## What to prepare before you contact us

Gather what you can. You do not need all of it to send us an outline.

- the partner's legal name and its commercial registration (CR) number;
- the draft agreement or term sheet, if there is one;
- the products and the territory you have in mind;
- whether you want one exclusive partner;
- any earlier agreement for Saudi Arabia, and whether it was registered.

Keep them ready; once we confirm we can help, we tell you which ones to send.


## Frequently asked questions

### Do we need a Saudi agent or distributor to export to Saudi Arabia?

Not always. A distributor or commercial agent is one common route, and a company of your own in Saudi Arabia is another. The right choice depends on how much control you want, how much you plan to sell and who will serve customers. Import, customs and product approvals are separate questions for the authorities concerned. See [the ways a foreign business can start working in Saudi Arabia](/company-formation/#routes).

### What is the difference between a commercial agent and a distributor in Saudi Arabia?

An agent usually sells or represents your products for you, while a distributor usually buys them and resells them in its own name. In Saudi Arabia, both kinds of agreement can be registered with the Ministry of Commerce: its online service for registering a commercial agency covers agency and distribution contracts. Which model fits depends on your products and your plans, so ask a licensed lawyer before you choose.

### How is a commercial agency registered in Saudi Arabia?

Through an online service of the Ministry of Commerce. According to the service page, the agent or distributor applies online and attaches the contract, ministry staff review the request, and the registration certificate is printed electronically once the government fee is paid. A contract signed abroad usually has to be certified first, and a contract not in Arabic translated by an accredited translation office. We check the contract before it is filed.

### How do we check a Saudi distributor before we sign?

Start with its commercial registration (CR). The Ministry of Commerce has an online service for viewing commercial registration data, searched by the business's name or its unified national number. Compare the result with the name on the draft contract and on any invoice. Then look at its activity, its team and its record with other brands. Saudi rules also set who can act as a registered agent, so we check that too.

### How do we know whether our brand is already registered to another Saudi agent?

Check the register before you appoint anyone. The Ministry of Commerce has an online service for looking up existing commercial agencies. According to its service page, you can search by agency number, by the agent's name or unified national number, or by the principal's name in English or Arabic. If an old registration appears, plan its removal with a lawyer before the new agreement is filed.

### Where should disputes with a Saudi distributor be heard?

Decide it in the agreement, before you sign. According to the Ministry of Commerce service page, a registered agency contract states which judicial body or country disputes are referred to. You can name the Saudi courts or arbitration, for example at the Saudi Center for Commercial Arbitration (SCCA). The wording matters, in both languages if there are two, so a licensed lawyer should check it for your contract.

## Official sources

- Ministry of Commerce: [Application for registering a Commercial Agency](https://mc.gov.sa/en/eservices/Pages/ServiceDetails.aspx?sID=41) (checked 2026-10-21)
- Ministry of Commerce: [Inquire about existing commercial agencies](https://mc.gov.sa/en/eservices/Pages/ServiceDetails.aspx?sID=18) (checked 2026-10-21)
- Ministry of Commerce: [Query about commercial registration data](https://mc.gov.sa/en/eservices/Pages/ServiceDetails.aspx?sID=91) (checked 2026-10-21)

General information about Saudi law, not legal advice on your situation. For your own case, speak to a licensed lawyer. Contacting us does not create a lawyer–client relationship until an engagement letter is signed.

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Saudi Law is operated by RAED ALI ALJOHANI COMPANY FOR Lawyership and Legal Consultations, licensed in Saudi Arabia. https://saudilaw.co/distributor-contractor-disputes/distribution-agreements/