Modernizing Commercial Agency Regulations in Saudi Arabia: Legal Reforms and Comparative Insights

This study analyzes Saudi Arabia's 2022-2023 reforms to the Commercial Agency Law through legal, economic, and comparative lenses. The pre-reform regime-marked by rigid nationality limits, procedural burdens, and litigation-prone termination rules-constrained market entry and investor confidence.

Using a doctrinal approach to statutes and implementing regulations, triangulated with Saudi judicial practice and policy instruments, we benchmark Saudi reforms against the UAE and UK. A Shariah lens clarifies how gharar (uncertainty), fasakh (rescission), and unjust enrichment ( akl al-māl bil-bāṭil) shape agency disputes.

Key changes include more flexible nationality rules, end-to-end digital registration and renewal, clearer termination/compensation standards, and formal recognition of arbitration (including SCCA). Together these measures enhance contractual predictability and lower compliance frictions, with early indications of improved market transparency and investor sentiment.

The reforms signal a hybrid model-liberalization aligned with global practice while preserving a Shariah-grounded identity. Remaining priorities include consistent judicial application, practitioner training, clearer guidance, and GCC coordination. We propose thematically grouped policy steps to consolidate gains and support Vision 2030's diversification agenda.