The large percentage of the population aged under 20 will likely substantially increase the demand for a wide range of consumer goods and products in the coming years. Many companies import goods for their own use or for direct sales to end-users, making the location and number of retail outlets an important factor. U.S. exporters might find it beneficial to appoint different agents or distributors for different regions. Multiple agencies or distributors might also be assigned to handle diverse product lines or services. Although there is no requirement for exclusive distributorships, Saudi Ministry of Commerce policy is that all such arrangements be exclusive with respect to either geographic region or product line.
Many Saudi companies are active in numerous product lines.
A Saudi agent will typically expect the foreign supplier to assume many of the market development costs, such as the hiring of a dedicated sales staff. Foreign suppliers often assign a sales person to the Saudi distributor to provide training, marketing, and technical support. Without such an arrangement, firms should travel to Saudi Arabia regularly to support their Saudi distributor. Marketing and Advertising Direct marketing is not a widely used technique in Saudi Arabia. Personal relations between vendors and customers are extremely important in the Kingdom.