What Is A Saudi Arabian Commercial Agency?

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What is a commercial agency?

A commercial agency allows companies to expand into Saudi Arabia without a physical presence in Saudi Arabia. A commercial agent will give you access to the Saudi market quickly and efficiently and their knowledge and expertise of the market will help you make the best choice for your company.

A commercial agent will procure business from potential clients on behalf of your business and close deals on your behalf.

How can it benefit my company?

Helps mitigate market entry risks

Establishing a company in Saudi Arabia requires money, time and resources, that likely cannot be recovered. However, using a commercial agent allows a company to offer their services in a new country without corporate relocation.

Can be used to test the waters before establishing a company in the country

Companies looking to expand into the Kingdom can use a commercial agency to test the waters to determine if there is a large enough market available before entering the market with a direct presence.

Can be used in smaller markets where a company presence is not essential

In industries with less prospects, a commercial agent is a more feasible option than establishing the business presence in the new market.

Lower overheads

Partnering with a commercial agency has lower overheads than setting up an office in a new country. It is a more cost-effective approach to expanding into new markets.

Easier to break into markets with high barriers

Using a commercial agency with knowledge of the market and the industry and experience working in the country means that it is easier for companies to enter the new market as the commercial agent will be familiar with codes of conduct and the way of business.

Avoid recruitment and/or relocation of employees

Using a commercial agent means that companies do not need to concern themselves with hiring new employees and working with a recruiter in a foreign country. Your commercial agency will take responsibility of the workload and will add team members to your account if necessary.

Solid knowledge of the market and industry
Your commercial agent will have solid knowledge of the market and the industry, making them the best option for your company. They’ll be able to advise you on what works best in the market and how you can tailor your goods to suit it.

Relationships with potential clients

As the commercial agent will have experience in the market and the industry, they will likely already have potential clients for you. Making the process of establishing your company name in the market easier.

Quicker access to the market

Using a commercial agency allows a company quicker access to the market as the commercial agency is already established and doesn’t have to go through the company set up process.

Establishing yourself in a new market is requires a significant amount of resources that not all companies have. A commercial agent can help you break many of the barriers to entry when entering a new market and can assist you with the process of establishing your presence in the new country.

Article supplied by Proven SA