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: 2/12/2019

The U.S.-Bahrain Free Trade Agreement (FTA) and Bilateral Investment Treaty (BIT) ensure American companies no longer need to appoint a local commercial agent, though they may opt to do so.  A commercial agency arrangement enables foreign investors to access the market without having to establish a direct presence in Bahrain.  A commercial agent is any Bahraini party appointed by a foreign party to represent the foreign party’s product or service in Bahrain.  Local law governs the relationship, whether the relationship is structured as a distributorship, sales agency, or otherwise.  As in other Gulf countries, regular, personal contact is the key to success in trade relationships.

A company’s office qualifies as a regional office if the company services even one additional GCC country from the office.  Bahraini law does not require foreign companies to hire a local agent or partner to establish a regional office in Bahrain.  Nevertheless, U.S. companies setting up regional offices typically find it useful to have a relationship with a local representative, particularly to deal with the local bureaucracy.
The law governing the relationship between a Bahraini agent and foreign principal is the Commercial Agencies Law promulgated by Legislative Decree No. 10 of 1992 and its Implementing Regulations, Ministerial Order No. 2 of 1993.  The law was amended by Legislative Decree No. 8 of 1998 and Legislative Decree No. 49 of 2002 (also known as the ‘Agency 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.