In brief
Restricts commercial agency in the Kingdom to Saudi nationals and wholly Saudi companies, requires agents to be entered in the Ministry of Commerce's agencies register, and penalises unlawful practice.
Summary of the law
Key points
- Only Saudis may act as commercial agents; a Saudi company acting as agent must be wholly Saudi-owned with Saudi directors and signatories (Article 1).
- Only agents entered in the agencies register may practise; a refused applicant may appeal to the Minister (Article 3).
Penalties
- The text of Article 4 sets SAR 1,000–5,000 for unlawful practice, plus administrative winding-up and a possible trade ban if the violator is a foreigner or a company with a non-Saudi partner.
- Article 4 and others are amended; check the notes under the articles in the full Arabic text before relying on the amount.
A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.
What it covers
- Agency restricted to Saudis
- Entry in the agencies register
- Penalties for unlawful practice
Timeline
- Issued: Royal Decree 11 · 20/2/1382H
- Amendments: Royal Decree M/5 · 11/6/1389H. Amendment to some articles (shown on the law's page at the Bureau of Experts)
- Amendments: Royal Decree M/8 · 20/3/1393H. Amendment to some articles (shown on the law's page at the Bureau of Experts)
- Amendments: Royal Decree M/32 · 10/8/1400H. Amendment to some articles (shown on the law's page at the Bureau of Experts)
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .