Article 4 of the Saudi Commercial Agencies Law

This Article sets the penalty for violating the provisions of the Commercial Agencies Law and its Implementing Regulations. In its text in force, as amended by Royal Decree No. M/32 dated 10/8/1400 AH, it works on two levels:

First: the basic penalty for every violator

• A fine of not less than SAR 5,000 and not more than SAR 50,000.
• Publication of the penalty at the violator's expense.
• This does not prevent anyone harmed by the violation from claiming compensation; the penalty does not extinguish their right.

Second: if the violation is attributed to a foreigner or to a Saudi company with one or more non-Saudi partners, the following are added to the fine:

• Administrative winding up of the business.
• With the possibility of a ban on practicing trade, permanently or for a set period.
• The Minister of Interior may order the deportation of the foreigner from the country in light of the penalty ruled, and the Ministry of Commerce must report to him the foreigner or the non-Saudi partner.

Among the provisions covered by this penalty is what Article 3 provides, that no one may carry on the business of a commercial agent unless registered in the agencies register. The second part shows that the Law is stricter in cases where non-Saudis enter the agency business.

Anyone charged with a violation, or who was harmed by another's violation and wants to claim compensation, would do best to consult a lawyer specialized in commercial cases and agencies.