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Guide

International Distributors That Actually Sell

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.

The short answer

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.

Distributor or agent: decide this first

They sound interchangeable. Legally they are not.

  • A distributor buys your goods and resells them to its own customers, in its own name. It takes legal title and usually the credit risk, the logistics and the after sale obligations. It earns a margin.
  • An agent negotiates, and sometimes concludes, sales on your behalf. The contract is between you and the customer. The agent earns commission.

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.

Step 1. Decide what you need the partner to do

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.

Step 2. Find candidates from the customer backwards

The distributor that approaches you at a trade show is rarely the one you want. The good ones are busy. Work backwards instead:

  • Ask the buyers. Who do your target customers already buy adjacent products from in that market? The firms that come up repeatedly are your long list.
  • Map the lines they carry. Complementary lines are a door in. A competing line is a conflict, however they describe it.
  • Use government services. The US International Trade Administration's International Partner Search gives US companies a list of up to five partners or distributors that have expressed an interest, for a fee of $2,500. The UK government's Business.gov.uk export service is the starting point for UK exporters.

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.

Step 3. Vet for access, not enthusiasm

Every distributor says yes. Stop selling and start interviewing.

  • Name the projects. Ask for the last three projects in your category they were specified into, who the buyer was and what it was worth. People with access talk about projects. People without it talk about themselves.
  • Count the lines. If you would be line forty one, you are a logo on their website.
  • Check the sector. Strong in construction can mean invisible in oil and gas, marine or defence. Match the partner to your buyer, not to the size of their logo.
  • Call their principals. Ask the manufacturers they already represent what was sold last year, to whom, and what the distributor chose to walk away from.

Step 4. Get the agreement right

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.

  • European Union. Regulation (EU) 2022/720, the vertical block exemption, has applied since 1 June 2022 and expires on 31 May 2034. It covers agreements where the supplier's and buyer's market shares do not exceed 30%. Restricting your distributor's ability to set its own sale price is a hardcore restriction, though you can set a maximum or recommend a price as long as it does not become a fixed or minimum one.
  • United Kingdom. The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 came into force on 1 June 2022 and ceases to have effect on 1 June 2028. It uses the same 30% market share threshold.
  • United Arab Emirates. Federal Law No. 3 of 2022 on Regulating Commercial Agencies defines commercial agency to include a contract of distribution. The activity is limited to UAE nationals and companies wholly owned by them, with a Cabinet exception for some international companies acting for their own products. Any commercial agency not registered in the register shall not be valid.
  • Saudi Arabia. Clyde & Co, writing in September 2026, says the commercial agencies framework commonly applies to distribution relationships, that only Saudi nationals and wholly Saudi owned companies may act as agents or distributors, and that 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.

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.

Step 5. Manage the partner like a sales team

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.

Where I help, and where I do not

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.

FAQ

Common questions

What is the difference between a distributor and an agent?

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.

How do I find an international distributor?

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.

What should a distribution agreement include?

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.

Can I set the price my distributor sells at in the EU?

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.

Do I need to register a distributor in the UAE?

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.

Do distributors in Saudi Arabia have to be Saudi?

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.

Got a distributor and a number that will not move?

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.

Market entry and partner guides

Why Your UAE Distributor Appointment Failed The most common Gulf market entry mistake. Market Entry for Manufacturers Choosing the market and the route in. GCC Market Entry Guide The Gulf, market by market. The United Kingdom Selling into the UK from abroad. EPC Procurement, from the Supplier's Side How equipment is bought on EPC projects. Parteloa Market intelligence for the territory you are selling into.