Corporate & Commercial10 min read
How does Qatar's Commercial Agents Law work for a foreign brand and its Qatari agent?
Faysel Al-MohannadiLawyer admitted before the Court of Cassation · Reviewed on
Short answer
Under Law No. 8 of 2002, only a Qatari national or a wholly Qatari-owned company registered with the Ministry of Commerce and Industry may act as a commercial agent. Sole distributors count as agents; unregistered agencies are not recognised. Termination or non-renewal can entitle the agent to compensation. Unless agreed otherwise, the Investment and Trade Court hears disputes.
What does Qatar's Commercial Agents Law cover?
Law No. 8 of 2002 on Regulating the Business of Commercial Agents governs the relationship between a principal, such as a foreign brand or supplier, and its commercial agent in Qatar. A commercial agent is licensed, alone and to the exclusion of others, to distribute the principal's products or offer them for sale, or perform specific services, on its behalf for remuneration (Article 2).
Law No. 2 of 2016 amended it, and Al Meezan showed no later amendment on 21 October 2026.
| Topic | Rule | Article |
|---|---|---|
| Contract | In writing, naming the parties, products, territory, term and renewal, and spare parts and maintenance | 3 |
| Who can register | A Qatari aged 18 or over, or a company with wholly Qatari capital | 11 |
| Registration | Required before agency work; renewed every two years | 11 and 13 |
| Unregistered agency | Not recognised under the law | 16 |
| Sole distributor | Treated as a commercial agent | 2 |
| Parallel imports | Allowed for traders on the commercial register | 4 |
| Termination | Compensation in the cases the law sets | 8 and 9 |
| Non-renewal claim | Lapses 90 days after the contract ends | Commercial Law 302 |
| Forum | Qatar's courts unless agreed otherwise; arbitral decisions are final | 23 and 24 |
Cabinet Decision No. 24 of 2016 removed 35 categories of goods from the law, such as dairy products, rice, sugar, cooking oil and detergents.
Who can be a commercial agent, and what if the agency is not registered?
Only a person entered in the Ministry of Commerce and Industry's commercial agents register may carry on commercial agency business (Articles 10 and 11). The agent must:
- Be a Qatari national, or a company whose capital is wholly Qatari.
- Be at least 18 years old (21 before the 2016 amendment).
- Have the agency's activity entered on the commercial register.
- Have no final conviction for a crime involving honour or trust, unless rehabilitated.
A foreign supplier therefore cannot be the agent or a partner in an agent company, and Law No. 1 of 2019 closes commercial agencies to non-Qatari investment (Article 4); see foreign investment in Qatar. Holding an agency in a Qatari's name for a foreign owner can be commercial concealment under Law No. 3 of 2023; see the commercial concealment guide. To register:
Confirm the agent's commercial registration is active, covers the agency's activity and has only Qatari partners.
Sign a written contract with the particulars in Article 3.
Apply to the Ministry's Commercial Agents Section with the contract, a certified Arabic translation if it is in another language, and the products' customs HS codes (Article 12 and the Ministry's requirements).
The Ministry decides within 30 days, and a refusal must give reasons (Article 14).
A refusal can go to the Minister by grievance within 30 days of notice (Article 14).
Renew every two years, within two months of expiry, with a continuity letter or a new contract (Article 13 and the Ministry's requirements).
An unregistered agency is not recognised under the law, and a claim arising from it is not heard from the party that failed to register it (Article 16). On translation, see Arabic and English contracts in Qatar.
Is a distribution agreement a commercial agency?
A distribution agreement counts as a commercial agency only if the distributor is the sole distributor of the firm's goods, products and services (Article 2, paragraph added in 2016).
The Commercial Law issued by Law No. 27 of 2006 also treats a sole distributor in a set territory as an agent of contracts, with its rules on minimum term, termination, compensation and time limits (Article 304).
A non-exclusive distributor meets neither test, so its contract and the general rules govern it; see reviewing a contract before you sign. A foreign firm that only promotes its products, without trading, can apply for a representative office licence (Article 25(5); Ministerial Decision No. 396 of 2017).
What does exclusivity give the agent, and what does it owe?
Exclusivity is part of the definition of a commercial agent, but it does not block parallel imports: traders on the commercial register may import goods covered by an agency, subject to the Minister's reciprocity rules (Article 4).
| Right or duty | Rule | Article |
|---|---|---|
| Commission on others' imports | Only as agreed, for imports for trade; none for personal use or re-export | 5 |
| Principal's own deals in the territory | Remuneration due to an agent of contracts unless expressly excluded | Commercial Law 297 |
| One agent per territory | No second agent of contracts for the same territory and line of business | Commercial Law 293 |
| Minimum term | Five years if the agent must build showrooms, warehouses or maintenance sites | Commercial Law 294 |
| Spare parts and maintenance | Agent and principal provide them at reasonable prices | 19 |
The 2016 amendment removed an earlier commission, set by the Minister at up to 5 per cent, on goods others imported.
How does an agency end, and when is the agent owed compensation?
A commercial agent in Qatar may claim compensation if the principal withdraws a fixed-term agency, ends an open-ended agency on its own, or refuses to renew after the agent's work brought evident success in promoting the products or increasing customers.
| Situation | Rule | Article |
|---|---|---|
| Fixed term expires | Ends unless both agree to renew | 8(a) |
| Principal withdraws a fixed-term agency | The agent may claim compensation | 8(b) |
| Principal does not renew | Compensation despite any contrary agreement, if the agent's work brought evident success that the refusal denied it | 8(c) |
| Open-ended agency | Ends by agreement, or by a judgment or decision of the body that decides the dispute | 9(a) |
| Open-ended agency ended by one side | The other may claim compensation; the agent's success-based claim applies despite any contrary agreement | 9(b) and 9(c) |
| Agent of contracts or sole distributor dismissed without fault | The principal compensates; contrary terms are void | Commercial Law 300 and 304 |
| Agency of contracts or sole distribution not renewed | Fair compensation set by the court, if the agent was not at fault and brought evident success | Commercial Law 301 and 304 |
Law No. 8 of 2002 sets no time limit for a compensation claim. Under the Commercial Law, the non-renewal claim lapses 90 days after the contract ends, and other claims from agency of contracts or sole distribution after three years (Articles 302 and 304). The text does not settle whether the 90 days govern a registered agent's claim under Law No. 8 of 2002, so the cautious course is to count them from the contract's end.
What happens to the register, the goods and the stock when an agency ends?
Law No. 8 of 2002 does not say expressly whether a new agent can be registered for the same products while a dispute with the previous agent is pending. These rules apply:
- The agent must apply to remove its registration within 30 days of the contract ending; otherwise the Ministry may remove it after hearing objections. Removal does not affect the agent's right to compensation (Article 20).
- The Ministry's published cancellation requirements ask for a declaration from the Qatari agent company and the reasons.
- If the principal ends or refuses to renew the agency without legal justification, the Ministry may ban imports of the goods (Article 17(a)). A lawsuit or arbitration does not by itself stop imports, though the Minister may stop them in the cases Article 17(b) lists.
- The new agent must buy the previous agent's usable stock at market price or cost, whichever is lower, plus up to 5 per cent unless agreed otherwise, and shares liability for its obligations to third parties (Article 18).
- A new agent that colluded in the dismissal or non-renewal is jointly liable for the compensation awarded (Commercial Law, Article 303).
Which court hears commercial agency disputes?
Commercial agency and distribution disputes in Qatar go to the Investment and Trade Court, unless the parties agreed on arbitration or another forum.
Qatar's courts hear disputes between principal and agent over the agency contract unless agreed otherwise (Article 23), and the Investment and Trade Court alone hears commercial contract disputes, including commercial representation and agency contracts (Law No. 21 of 2021, Article 7). An arbitral decision in an agency dispute is final (Article 24); see arbitration in Qatar.
A principal with no known domicile in Qatar can be sued and notified at its agent's domicile over the business the agent conducts for it (Commercial Law, Article 286). The Ministry's Commercial Agents Section also studies agency complaints and disputes, but it is not a court (Ministerial Decision No. 64 of 2024, Article 16).
When should you speak to a lawyer?
Agency deadlines can be short, and the register may not match the contract. Signs it is worth getting advice:
- You are a foreign supplier choosing between a registered agent, a sole distributor and a representative office.
- Your agency or distribution contract has no fixed term, or unclear renewal and exclusivity terms.
- The principal has said it will not renew, or has appointed or plans to appoint another agent.
- The agency is not registered, or its registration lapsed.
- The contract chooses foreign law, a foreign court or arbitration abroad.
What the law says
This guide relies on Law No. 8 of 2002 on regulating the business of commercial agents (Articles 2 to 25), as amended by Law No. 2 of 2016; Cabinet Decision No. 24 of 2016; the Commercial Law issued by Law No. 27 of 2006 (Articles 286 and 289 to 304); and the Investment and Trade Court Law issued by Law No. 21 of 2021 (Article 7). It also relies on Law No. 1 of 2019 (Article 4), Law No. 3 of 2023, Ministerial Decisions No. 396 of 2017 and No. 64 of 2024, and the Ministry of Commerce and Industry's published requirements for Commercial Agents Section services, as shown on Al Meezan and the Ministry's website on 21 October 2026.
Read on Al MeezanQuestions people ask
No. The agent must be a Qatari national or a company whose capital is wholly Qatari (Article 11). Law No. 1 of 2019 also closes commercial agencies to non-Qatari investment (Article 4).
Yes, if it is the sole distributor of the products. Article 2 of Law No. 8 of 2002, as amended in 2016, treats it as a commercial agent, and Article 304 of the Commercial Law applies the termination, compensation and time-limit rules to it.
The Commercial Law says this claim lapses 90 days after the contract ends, and other claims after three years (Article 302). Law No. 8 of 2002 sets no period of its own, so check the dates early.
Not against the agent's objection. It ends by agreement or by a judgment or decision of the body that decides the dispute (Article 9(a)), and a party that ends it on its own may owe compensation (Article 9(b)).
The Investment and Trade Court (Law No. 21 of 2021, Article 7), unless the parties agreed on arbitration or another forum (Article 23). An arbitral decision in an agency dispute is final (Article 24).
This guide is general information about Qatari law, not advice on your case.
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Have a commercial agency or distribution agreement in Qatar?
Check the registration, exclusivity and termination terms before you sign or end an agency, and ask about your situation.