A commercial agency gives you access to the Saudi market without having to establish a direct presence

Establishing a company in Saudi Arabia and finding a market entry strategy that works requires extensive market research and experimenting in a non familiar environment. Consulting services provide experienced guidance during company set up and beyond.

Market entry solutions for companies expanding into Saudi Arabia range and foreign investors can operate in Saudi Arabia through the following structures:

  • Limited liability companies
  • Foreign office branch
  • Commercial agencies
  • Joint stock companies
  • Technical and scientific offices (representative offices)

Commercial Agency

Producers of goods that are based outside of KSA can appoint local KSA agents as their representatives to sell their products and/or services in KSA. Whether the agent acts as a distributor, sales agency or otherwise, the Saudi Arabian commercial agencies law governs the arrangement.

The law requires a direct relationship between the business agent in KSA and the company based abroad. Non-Saudi nationals are prohibited from establishing import and export businesses and commercial agencies in KSA.

Saudi individuals or Saudi owned companies that are commercial agencies must be registered in the required registry at the Ministry of Commerce and Industry (MOCI) and they should apply for the registration during the first three months from the date of the implementation of the agreement. Whist not mandatory, any agency contract is recommended to follow the standard format approved by the MOCI.

What we do

  • Commercial agency
  • Market research
  • Consulting
  • Local partnership options

Market research

Hiring a market research company that is present in the Kingdom with years of experience and expertise in the market is the best way to gauge the feasibility of expanding into the Kingdom. The market research team should be able to provide information on the market structure, market share and current market trends and analyse the feasibility of the move.

Consulting

Entering a new market will have new hurdles to overcome and the best way to deal with these new challenges is to utilize the expertise of consultants who have experienced these challenges before. Using consulting services before expanding into Saudi Arabia will help iron out potential mishaps before they happen and create a strategic approach to the expansion.

Local partnership

Local partnerships are an option for companies that want to export to Saudi Arabia. Without a physical presence in the Kingdom through a local agent or partner, doing business in Saudi Arabia may put companies at risk of violating the anti-fronting law.