Sales Representatives & Distributors

One of the important methods of selling goods is to engage sales representatives and distributors. 

In international economic trade, the head office of the company and the domicile of their sales representatives or distributors, are located in different countries. Sales representatives acting in the market conclude sales contracts with customers on behalf of, and for the account of a company located in another country.

Distributors purchase the goods from a foreign contract partner and then sell it in their own name and on their own account in the country in which they have established themselves.

Most Arabic countries have laws pertaining to commercial agencies that also apply to distributors/independent dealers. Very important in practice is the implementing regulation issued by the Ministry of Commerce, and the official model contracts for the conclusion of sales representative or independent dealer contracts with foreigners that this ministry has published.

For more information, including current case law in the Arabic countries on this subject, feel free to contact us at any time.