Includes typical use of agents and distributors and how to find a good partner, e.g., whether use of an agent or distributor is legally required.
Last Published: 11/20/2018

Foreign companies wishing to distribute their products in Oman often prefer using a local agent, though American companies are no longer required to do so. Agents are particularly useful for sales to the Omani government due to their contacts, language ability, and cultural knowledge. Constrained budgets encourage government procurement officials to buy direct; however, in practical terms, it is still difficult for foreign firms to sell to the government without an Omani agent scouting for and bidding on tender opportunities. As in other Gulf countries, regular, personal contact is the key to success in trade relationships.

The manufacturer or supplier may not unilaterally terminate an agency agreement except where there is an unjustifiable breach of agreement by the agent. The Commercial Agencies Law (CAL) governing agency agreements generally awards 2-3 years of profit as compensation for “unjustified” failure to renew even fixed-term agencies, so consultation with a lawyer in drafting an agreement is highly recommended. Agents must register agreements at the Oman Chamber of Commerce and Industry (OCCI). Agents must register in writing (in Arabic) with the Registrar of Agents and Commercial Agencies at the Ministry of Commerce and Industry (MOCI), renewable every three years. Agencies may be non-exclusive and more than one agent may be engaged to promote the same product or services. The agent is entitled to commission even if the principal has resorted to direct selling in contravention of the CAL, which is widely considered to favor the agent.

The Embassy's Commercial Section can provide due diligence on most Omani companies and/or potential agents for a small fee via our “International Company Profile” service. In addition to consulting the Embassy, personal visits to potential agents are recommended. Due to the complexity of Omani regulations, it is advisable to obtain legal counsel before drawing up an agency agreement. While the Embassy's Commercial Section offers general information on Oman’s commercial regulations, formal legal counsel is recommended for specific questions on labor, investment, tax laws, and licensing procedures, and for the resolution of commercial disputes.
The Embassy's Consular Section website has a list of local attorneys, including those specializing in commercial law.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


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Oman Trade Development and Promotion