Commercial Agency & Distribution Lawyers in Jeddah

Commercial agency & distribution in Jeddah: registration is a requirement, not a formality

The Saudi Commercial Agencies Law requires a commercial agent to be a Saudi national (an individual, or a company fully owned by Saudis with a Saudi board and authorized signatories), and commercial agency work may not be conducted until the agency is recorded in the Ministry of Commerce's commercial agents register within three months of the agreement taking effect. Failure to register doesn't invalidate the contract between the parties, but it denies the agent the full protection the law provides and exposes them to regulatory liability.

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Exclusive agency: protection and obligation together

If the contract provides for exclusivity, the principal is barred from appointing another agent or selling directly within the agent's designated geographic area for the duration of the contract, and any breach of this term entitles the agent to full compensation for damages, including lost profits. In return, the agent is obligated to permanently secure spare parts and necessary maintenance for the agency's products, even for a year following the agency's end or the appointment of a new agent.

Terminating the agency contract: notice period and compensation

The required notice period for ending an agency depends first on what the contract itself specifies; absent that, general provisions in the Civil Transactions Law apply, requiring reasonable notice proportionate to the contract's nature, term, and the investment the agent built based on the relationship continuing. Sudden termination without adequate notice, especially after years of an active agency, can open the door to substantial compensation claims by the agent.

Our commercial agency and distribution services

• Drafting and registering commercial agency and distribution contracts with the Ministry of Commerce
• Reviewing, translating, and certifying foreign agency contracts per statutory requirements
• Representing clients in disputes over agency termination or breach of exclusivity
• Claiming compensation for lost profits when an agency is ended without sufficient justification

How we start

1. Send us your agency details or draft contract over WhatsApp
2. The lawyers review the terms and confirm the statutory registration requirements are met
3. The lawyers proceed with registration or represent you in any existing agency dispute

To register or review a commercial agency contract in Jeddah, contact us on WhatsApp.

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