Agencies Executive regulations

• The Executive Bylaws of the Commercial Agency System in the Kingdom of Saudi Arabia

  were issued by the Ministry of Commerce under Ministerial Decision No. (1897) dated 24/5/1401 AH, corresponding to 30/3/1981 AD.
  The aim of these bylaws is to detail the Commercial Agency System in order to safeguard the rights and obligations of both parties and provide legal protection for both the agent and the principal or their representative in their home country.
  The bylaws include several provisions and requirements that parties must adhere to, including:

  • Conditions for registration and obtaining the necessary licenses to engage in commercial activities.
  • Conditions for defining the responsibilities and obligations of the parties in the contract, including the contract duration, scope, and specifying the type of financial consideration.
  • Compliance with quality, health, and safety standards, as well as delivery conditions for all products and services provided under the commercial agency name.
  • The necessity of entering into specific contracts to regulate the relationship between the principal and the agent.
  • Verification procedures for the agent's records and commercial history.
  
  The bylaws aim to create a suitable business environment for the growth of the commercial agency sector in the Kingdom and achieve the goals of Saudi Vision 2030 to enhance investment and develop the economy. Additionally, the bylaws aim to protect the rights of the principal and the agent and improve the business relationships between them. To know more click here or download the file