The Saudi Arabia commercial agency agreement – (اتفاقية وكالة) in 2025

• 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 MISA 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.