Document background
The Simple Distribution Agreement is a fundamental commercial contract used to establish and regulate the relationship between suppliers and distributors in Saudi Arabia. This document is particularly relevant when a supplier wishes to appoint a distributor to sell and distribute their products within Saudi territory, whether on an exclusive or non-exclusive basis. The agreement must comply with Saudi law, including the Commercial Agencies Law and Sharia principles, while addressing practical commercial considerations such as territory rights, ordering procedures, pricing, and performance expectations. It's commonly used for both domestic and international distribution arrangements, requiring careful attention to local regulatory requirements, including potential Commercial Agency registration requirements and compliance with Saudi foreign investment regulations where applicable.
