The Saudi Arabia commercial agency agreement – (اتفاقية وكالة)

  • The Saudi Arabia commercial agency agreement is not a legal entity but is the quickest and cheapest way to penetrate the Saudi market;
  • This agreement allows foreign investors to do business in Saudi Arabia without needing a SAGIA foreign investment licence;
  • A foreign company must sign an agreement with a local/commercial agent already licenced in the same line of business;
  • The Saudi Arabia commercial agency agreement must be registered with the Ministry of Commerce and Industry;
  • The commercial agent is then responsible for promoting and selling goods and services on behalf of the foreign company;
  • It is vital to fully understand the risks associated with this strategy and comprehend the terms and conditions of the agreement;
  • We advise our Clients to proceed with a Saudi commercial agency agreement as a temporary solution, to ’test the waters’ in Saudi Arabia;
  • Refer to the agency agreement webpage for more information.

Technical and Scientific Offices (Representative Offices)

  • Foreign companies are permitted to establish representative offices in Saudi Arabia;
  • Representative offices are only permitted to conduct product research and market surveys for the parent company;
  • Representative offices can also provide scientific and technical services support for their products to distributors, agents and consumers;
  • These entities are, however, not permitted to engage in commercial or any income-generating activities.

Contact us

For additional information on our company registration services in Saudi Arabia, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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