Market guide · Gulf

European companies in the Gulf: what works and what does not

Many European industrial companies look at the Gulf, travel to a trade fair, collect cards and then stall. Others build steady business. The difference is rarely the technology alone. This guide sums up the patterns behind the questions we ask every company we work with.

01

What works

  • Starting with an honest question: where does our technology create enough extra value to win against what buyers can already get?
  • Showing lifetime cost in the buyer’s own numbers, not only the purchase price.
  • Treating Saudi Arabia and the UAE as different markets with different buyers and rules.
  • Meeting people in person, repeatedly, after proper introductions.
  • Having a local person who follows up between visits.
  • Choosing partners by what they have actually sold, to whom, in which countries.
02

What does not

  • Granting exclusivity for the whole Gulf to the first interested distributor.
  • Relying on email and cold outreach. In Saudi Arabia in particular, the US Commercial Service advises against cold outreach because buyers prefer to meet after an introduction.
  • Discovering certification requirements (ECAS or EQM in the UAE, SABER in Saudi Arabia) only when the first order arrives.
  • Expecting a single trade fair to create a market.
03

Rules that shape the route

  • UAE: registered commercial agents must as a rule be UAE nationals or companies wholly owned by UAE nationals (Federal Law No. 3 of 2022).
  • Saudi Arabia: foreign companies can trade without a local partner since 2016; agency agreements are registered with the Ministry of Commerce; commissions typically range from 3 to 10 percent.
  • Saudi Arabia: since 1 January 2024 government entities generally do not award contracts to foreign multinationals without a regional headquarters in the Kingdom, with limited exceptions.
How Redwood helps

We start with an honest market read, then build the meetings, representation and partnerships you need to compete.

Guide: Doing business in Saudi ArabiaGuide: Doing business in the UAEGuide: Finding a distributorMarket Assessment

Questions

Should we start in the UAE or Saudi Arabia?

It depends on your buyers. The UAE is where many regional decision makers are and where meetings are quick to arrange. Saudi Arabia is the larger market, with more programme-driven demand and more need for local presence.

How long does it take to see results?

It varies by sector and buyer. What reliably slows it down is infrequent contact and the wrong partner.

Sources

Last reviewed 2026-09. This guide is general information, not legal or tax advice.

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