SELLING INTO
THE MIDDLE EAST.

The GCC agreed a common VAT framework and implemented it at different times and different rates. Saudi Arabia raised its rate substantially after introduction; the UAE did not. Assuming one Gulf rate is a pricing error.

A designated free zone is legally outside the customs territory for many purposes. Goods stored there have not been imported, so duty and import VAT are not due until they leave for the mainland. It is a genuine cash-flow advantage and a genuine record-keeping obligation.

Several markets give a registered commercial agent strong statutory protection — including compensation on termination — that overrides what your contract says. Appointing an exclusive distributor is easy; ending the arrangement can be expensive in a way that is not visible when it is signed.

Conformity marks, Arabic labeling and product registration are enforced at the port. Halal certification is required for food and touches ingredients, processing and transport rather than the final product alone.