Authorised Distribution Activities

The Bahrain Ministry of Commerce and Industry (“MOIC”) recently passed Decision 29 of 2024 concerning the conditions and controls for practicing the activity of the authorised distributor (“Decision”) which provides amongst other things that (i) all qualifying distribution agreements should be registered in the new register maintained by the MOIC in Bahrain; and (ii) that local distributors must include in the authorized commercial activities appearing on their Commercial Registrations (CRs) the relevant authorised distribution commercial activity (in addition to any relevant sale/trade commercial activities relating to the goods they sell).

The Decision impacts on foreign principals and local distributors in Bahrain who have entered into distributorship arrangements in any sector whereby the local party undertakes authorised distribution activities. The Decision provides that: