Background this study examines the modernization of Saudi’s Commercial Agency Law the 2022–2023 reforms, with a focus on legal, economic, and comparative dimensions. For decades, the previous framework faced criticism for its rigid nationality restrictions, procedural inefficiencies, and dispute resolution mechanisms. The reforms form part of the Kingdom’s broader Vision 2030 strategy, aiming to diversify the economy, strengthen private sector competitiveness, and integrate more fully with global trade systems. This research also evaluates how the reforms align with Shariah principles, balancing commercial flexibility with religious compliance. Methods the study adopts a doctrinal legal methodology, systematically analyzing statutory amendments and implementing regulations considering Saudi case law and policy statements. A comparative approach is employed to benchmark the reforms against best practices in jurisdictions such as the UAE and the UK, with particular emphasis on contract termination rules, registration systems, and dispute resolution mechanisms. Sources include secondary data such as official gazettes, ministerial circulars, judicial precedents, and academic literature. Results key legislative changes include the relaxation of nationality requirements for commercial agents, enabling broader foreign participation; the digitalization of agency registration and renewal processes, reducing administrative burdens; clarified termination and compensation provisions, enhancing contractual certainty; and formal recognition of arbitration clauses, offering greater dispute resolution flexibility. These reforms have the potential to significantly improve market transparency, reduce litigation and attract foreign direct investment (FDI). Conclusions although the reforms represent a significant advancement, challenges remain, including judicial consistency in interpreting the new provisions, resistance among entrenched market players, and the need for enhanced regulatory guidance. The paper recommends targeted judicial and practitioner training, proactive awareness campaigns, and GCC-wide legal harmonization to amplify reform benefits. Implemented effectively, these measures could solidify Saudi Arabia’s role as a regional leader in commercial agency regulation, strengthen investor confidence, and advance the Kingdom’s long-term economic diversification goals.
Alasmari et al. (Fri,) studied this question.