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A Value Added Reseller Agreement lets companies legally resell products after adding their own improvements or services. Under Saudi commercial law, these agreements help technology companies, software providers, and industrial suppliers build local distribution networks while maintaining quality control and brand standards.

The agreement specifies how resellers can modify, package, or enhance the original product, plus their sales territory rights within the Kingdom. It covers key requirements like minimum purchase volumes, pricing structures, and technical support obligations. Saudi businesses often use these agreements to comply with localization requirements while partnering with international vendors.

Use a Value Added Reseller Agreement when you're planning to add features or services to another company's products before reselling them in Saudi Arabia. This is especially important for tech companies that customize international software with Arabic language support, or manufacturers who integrate imported components into locally assembled products.

The agreement becomes essential when expanding distribution channels across different Saudi regions, or when meeting local content requirements under Vision 2030 initiatives. It helps protect both parties by clearly defining modification rights, territory limits, and support obligations while ensuring compliance with Saudi commercial regulations.

• Reseller Software License: Focused on software distribution rights and technical support requirements. Common variations include exclusive territory agreements for specific Saudi regions, non-exclusive distribution rights across the Kingdom, limited modification rights for localization only, or full customization rights. The agreement's scope can range from simple Arabic UI translations to deep technical integrations, with varying levels of product modification permissions and support obligations.

• Original Product Manufacturers: International companies who create the base products and authorize Saudi partners to enhance and resell them, typically setting quality standards and brand guidelines.
• Value Added Resellers: Saudi businesses that customize or enhance products with local features, Arabic language support, or additional services before distribution.
• Legal Departments: In-house counsel and external law firms who draft and review Value Added Reseller Agreements to ensure compliance with Saudi commercial regulations.
• Compliance Officers: Monitor adherence to territory restrictions, modification limits, and local content requirements under Vision 2030.

• Product Details: List the original products, permitted modifications, and value-added services allowed under Saudi regulations.
• Territory Rights: Define specific regions within Saudi Arabia where resale is permitted, noting any exclusive zones.
• Pricing Structure: Document minimum purchase volumes, resale pricing guidelines, and profit-sharing arrangements.
• Technical Requirements: Outline support obligations, quality control measures, and Arabic language requirements.
• Document Generation: Use our platform to create a legally-sound Value Added Reseller Agreement that automatically includes all mandatory elements under Saudi law.

• Identification Clauses: Full legal names and commercial registration details of both manufacturer and reseller under Saudi law.
• Product Scope: Detailed description of original products and permitted modifications, aligned with Saudi technical standards.
• Territory Rights: Clear definition of authorized sales regions within the Kingdom.
• Commercial Terms: Pricing structures, payment terms, and minimum purchase requirements in Saudi Riyals.
• Compliance Section: References to relevant Saudi commercial regulations and Vision 2030 local content requirements.
• Dispute Re����ֱ��: Specified Saudi court jurisdiction or approved alternative dispute re����ֱ�� mechanisms.

A Value Added Reseller Agreement differs significantly from an Agency Agreement in several key aspects under Saudi commercial law. While both involve product distribution, their scope and legal implications vary considerably.

• Modification Rights: Value Added Resellers can customize and enhance products before resale, while agents simply sell products as-is on behalf of the principal.
• Ownership Structure: Resellers purchase products outright and own inventory, whereas agents never take ownership of the products they sell.
• Compensation Model: Resellers earn profits from markup on enhanced products, while agents typically receive commissions based on sales volume.
• Legal Liability: Resellers assume responsibility for product modifications and customer support, but agents mainly facilitate sales with limited liability.
• Local Content Requirements: Value Added Reseller Agreements often help meet Vision 2030 localization goals through product customization, which agency agreements typically don't address.