How I find, vet and appoint a distributor in a new market. Distributor or agent, the questions that expose a warehouse, what goes in the agreement, the rules in the EU, UK, UAE and Saudi Arabia, and what to do once they are signed.
Decide first whether you need a distributor or an agent, because the law treats them very differently. Find candidates by asking who your target customers already buy from, not by answering whoever approaches you. Vet them for access, not enthusiasm: named projects, named buyers, real numbers. Get the agreement reviewed by a lawyer in that market, because competition law in Europe and agency law in the Gulf can decide what you are allowed to agree and how hard it is to leave. Then manage the partner like a sales team, because a distributor left alone finds a level and stays there.
At Hughes Safety Showers the incumbent Gulf distributor was a PPE business. Safety showers are a completely different sale, and the number through that channel came in at roughly the same level every single year. I moved on from the distributors that no longer fit, built a strong relationship with fire safety players, whose sector aligned far better, and ran direct where I could alongside them. The Middle East grew 167% in 2024. The product did not change. The channel did.
They sound interchangeable. Legally they are not.
The difference bites when you want out. In Great Britain the Commercial Agents Regulations 1993 entitle a commercial agent to compensation when the agency ends, unless the contract provides for an indemnity instead, which is capped at one year's remuneration averaged over the previous five years. Those Regulations apply to commercial agents, not to distributors that buy and resell. In the Gulf the law can pull a distributor into the agency regime, which I cover below.
Most distributors are warehouses with a sales badge. They hold stock, clear customs, invoice and wait for the phone. That is useful if you already have pull in the market. It is close to worthless if you need someone to create demand.
For specified industrial products, the door openers are the ones with relationships at the consultants, contractors and operators who decide what gets used. Be honest about which one you need before you start looking, because you will be offered plenty of the first kind.
The distributor that approaches you at a trade show is rarely the one you want. The good ones are busy. Work backwards instead:
This is a research problem before it is a sales problem, especially from a thousand miles away. Parteloa, my market intelligence platform, maps the customers, contractors and partners in a territory and scores partners on the signals that predict performance, so you appoint on evidence rather than the first warm introduction.
Every distributor says yes. Stop selling and start interviewing.
Law firm guidance lists the provisions a distribution or agency agreement should cover: territory and customer scope, the products, payment, performance targets, intellectual property, confidentiality, termination rights, post termination restrictions and dispute resolution. Two of those matter more than the rest. Tie exclusivity to performance targets you can measure. And know exactly how you get out before you sign, because that is when your leverage is highest.
Then check the local rules. Here is where they sit in four markets I work in. It is not legal advice.
In the Gulf in particular, the agreement decides how expensive a bad appointment becomes. Read it with a lawyer in that market, and read my piece on why UAE distributor appointments fail before you sign anything.
Signing is where most manufacturers stop. It is where the work starts.
Watch for the ceiling. A flat number year after year through a distributor is not stability. It is a ceiling. That is what I found at Hughes, and the answer was a different channel, not a louder conversation with the old one.
Work every channel on the deal. At Brannan, Wolseley was the partner and brought in a decent level of business. On Bishopsgate, a London tower and an order worth around £150K, I still worked the consultant WSP, the main contractor Multiplex and the developer directly, and made sure Wolseley kept me in the conversation. Do not rely on your partner, even when they are the biggest in the business.
Know the end user. The £500K testing machine upgrade I sold to a defence contractor in Norway at Raufoss came through a partner. I still got direct contact with the end user, learned the buying committee and their schedule, and used the lead time to close it on time.
A distributor is a channel, not a strategy. The manufacturer still has to own the deal.
I am not a lawyer, and I do not draft your agreement. What I do is decide with you whether a distributor is the right route at all, find and vet the candidates against your standard rather than their pitch, then work the market alongside them so the number does not stall. Read market entry for manufacturers, the GCC market entry guide and the United Kingdom for the markets themselves.
A distributor buys your goods and resells them to its own customers, in its own name, taking legal title and usually the credit risk. An agent negotiates or concludes sales on your behalf, and the sale is between you and the customer. In Great Britain, commercial agents are entitled to compensation or an indemnity when the agency ends under the Commercial Agents Regulations 1993.
Start with the customers, not the distributors. Find out who your target buyers already buy from in that market, then check those firms for conflicting lines and real access. Government services help too: the US International Trade Administration's International Partner Search returns up to five interested partners for a $2,500 fee, and the UK government's Business.gov.uk export service offers support to UK exporters.
Law firm guidance lists territory and customer scope, the products covered, payment arrangements, performance targets, intellectual property rights, confidentiality, termination rights, post termination restrictions and dispute resolution. Have a lawyer in the distributor's country review it before you sign.
Not as a fixed or minimum price. Under Regulation (EU) 2022/720, restricting the buyer's ability to determine its sale price is a hardcore restriction. You can impose a maximum sale price or recommend one, provided it does not amount to a fixed or minimum price.
Federal Law No. 3 of 2022 on Regulating Commercial Agencies defines commercial agency to include distribution contracts, limits the activity to UAE nationals and companies wholly owned by them, with a Cabinet exception for some international companies, and says any commercial agency not registered in the register shall not be valid. Take UAE legal advice on your structure.
According to Clyde & Co, writing in September 2026, only Saudi nationals and wholly Saudi owned companies may act as commercial agents or distributors in the Kingdom, and the agreement must be recorded in the Ministry of Commerce's Commercial Agencies Register, generally within three months. A new Commercial Agencies Law is under discussion, so check the current position before you sign.
Sources: Berry Smith, agency vs distribution agreements · Commercial Agents Regulations 1993, regulation 17 · Wilson Browne, agency and distribution agreements · Regulation (EU) 2022/720 · UK Vertical Agreements Block Exemption Order 2022 · UAE Federal Law No. 3 of 2022 · Clyde & Co, Saudi commercial agency and distribution, September 2026 · ITA International Partner Search · Business.gov.uk, exporting. Checked 12 November 2026. This is not legal advice. Laws change, so take advice from a lawyer in the market before you sign.
If the channel has found its level and stayed there, the problem is the route to market, not the effort. That is the part I own.