In 2024, Asia’s legal markets remained in flux. On one hand, Singapore stood tall as a neutral arbitration hub, Indonesia’s booming economy beckoned global firms, and India’s legal scene sizzled with talent wars and ambitious expansions. And Saudi Arabia led a Middle Eastern renaissance, shaking up the region with bold reforms.
At the other end of the region, Hong Kong continued to reel from a tidal wave of firm downsizing and exits as it grappled with a profound crisis of confidence. But not all hope is lost, as growing southbound interest from mainland China began to offer a lifeline to Hong Kong’s beleaguered legal market.
HONG KONG: CHANGING OF THE GUARD
The year 2024 was one where Hong Kong’s legal marketplace took no prisoners. Battered by the prolonged economic malaise of China – which saw more than its own share of departures this year - international law firms that once touted their unwavering commitment to Hong Kong began cutting back in droves. One notable example of the year was the split of Chicago-based Mayer Brown from its local partner Johnson Stokes & Master, which reemerged as an independent brand after a 16-year hiatus. Also calling it quits were Philadelphia-headquartered Dechert and Chicago-based Winston & Strawn, accelerating a streak of exits set in motion since last year.
“2024 did not represent a seismic shift in the market,” says Chris Lambert, managing partner at Hong Kong firm Robertsons. “Rather, it underlined that many of these tensions are here to stay for quite some time to come.”
With the investor pool restrained, sentiments dim, and prospects of returns cloudy, Hong Kong struggled to make a comeback as Asia’s premier financial hub. “A lot of the deals that are being done are of smaller size and less complex. We can see that having an impact on the legal services market here in Hong Kong,” says Matt O’Callaghan, Hong Kong managing partner at magic circle firm Freshfields.
“International law firms whose offices in Hong Kong were focused on capital markets or whose presence in the mainland was focused on direct foreign investment, have inevitably faced challenges in the current political landscape.” — Edwin Northover, Debevoise & Plimpton
It will probably take more than sporadic bouts of pickups in fundraising or positive signals from the central government to convince businesses to return in numbers. For all of Beijing’s policy support for offshore listings, companies still grapple with evolving sanctions regimes and heightened regulatory scrutiny, leaving law firms at the mercy of increasing volatile global risks. “There’s rarely been so many emerging considerations impacting operational resilience,” says Gareth Hughes, Hong Kong partner at New York-based Debevoise & Plimpton. For American firms, in particular, those primarily serving a
U.S. client base with a business model focused on inbound and outbound transactions with the U.S., it translated into direct damage on bottom line in the face of high operational costs. “If your model was heavily geared towards that, there has been an adjustment here in Greater China,” says O’Callaghan.
Edwin Northover, who heads Debevoise’s financial institutions and corporate practice in Asia, feels the challenge posed by market conditions is not unique to U.S. firms. “International law firms whose offices in Hong Kong were focused on capital markets or whose presence in the mainland was focused on direct foreign investment, have inevitably faced challenges in the current political landscape,” he says.
With U.S. firms scaling back, UK firms have largely maintained a steady presence in Hong Kong, which even saw new entrants from London this year. O’Callaghan, who also heads Freshfields’ financial services practice in Asia, says the firm – backed by its international network and strong U.S. coverage - has been mindful to maintain the right shape and size to facilitate client needs on a global scale.
“We can’t step away from Greater China when the conditions are difficult. It’s a key market for the region and core to our global strategy,” says O’Callaghan. “If you’re only investing when the times are good and retreat when the times are bad, that makes it a lot harder to demonstrate that you are here for the long term."
In particular, clients are likely to find a consistent, long-term partnership with their legal advisors more valuable. “Clients seek out stability and prefer not to re-educate their counsel on their way of operating for every instruction because there is a new team in place,” says O’Callaghan.
The wave of retreat and reshaping was all too obvious, however, leaving a vacuum that PRC firms found suitable to fill. Beijing’s Docvit, Shanghai’s SGLA, and Guangzhou’s Wang Jing & GH all launched new offices in Hong Kong this year, with Guantao entering into an association with local firm Gallant.
As new players arrived, “there is a notable increase in lawyers from top U.S. firms joining PRC law firms, attracted by solid deal flow, growth potential and partnership opportunities,” observes Camilla Worthington, managing director at legal recruitment firm Worthington Legal. “Currently, it is a client-driven market.”
PRC capital markets heavyweight Jingtian & Gongcheng, which planted the flag in Hong Kong in 2019, has been steadily expanding ever since. This year, the firm snatched partners from a shuttered LC Lawyers and a downsized Morrison Foerster. With more PRC firms - driven by clients’ cross-border business needs - eyeing a slice of the Hong Kong market, Jingtian’s senior managing partner, Elaine Lo, remains bullish.
“I am optimistic about the prospects for PRC law firms in Hong Kong in the next few years,” says Lo. Key opportunities will stem from China’s strategic initiatives: the Greater Bay Area development, the Belt & Road Initiative, and enhanced connectivity with Global South economies, she adds.
But as the world braces for Donald Trump’s hardened America-first agenda, markets have priced in a period of height-ened animosity between the U.S. and China. That might be grim news for international firms locked into a sizable Greater China operation, but PRC firm lawyers with regulatory expertise are gearing up for a windfall.
“I can foresee increasing demand from our Chinese clients to help them to navigate through the maze of sanctions and export controls, and to provide expert advice on international trade matters,” says Lo.
“We are not politicians, so we can’t control geopolitical events and outcomes,” says Northover. “But like the businesses we serve, we evolve to seize the opportunities. That’s what Hong Kong itself has always done.” (SW)
SINGAPORE: CAN IT LAST?
On marking Singapore’s 59 years of independence, Prime Minister Lawrence Wong told the country’s population of 5.6 million that “intensifying rivalry” between China and the U.S. was the Lion City’s biggest concern. And with everything that has been announced so far, Donald Trump’s upcoming second stint as U.S. president is likely to keep the region’s nerves on edge. For Singapore’s legal marketplace, however, 2024 appeared
to be another fine year partly due to the lasting geopolitical and economic overcast surrounding Greater China. In addition, “Singapore’s strategic location as a global business hub and its strong trade links with both developed and emerging markets make it a critical gateway for cross-border transactions,” say Daniel Levison and Tabitha Saw, co-managing partners at Morrison Foerster in Singapore.
Consequently, more international firms chose Singapore to anchor their Asia practice, with U.S. firm O’Melveny & Myers giving the city-state a second chance. UK firm Eversheds Sutherland was mulling a Singapore comeback after bowing out of Beijing.
Even regional firms wanted a slice of the action. Australia’s Wotton + Kearney expanded its Asia network by adding Singapore, while Japanese boutique Tokyo International Law Office chose the city-state for its first overseas outpost. This move was driven by the increasing needs of “decoupling of supply chains” and a growing preference among clients for Singapore as a seat to resolve cross-border disputes.
This trend highlighted one of the key practice areas that saw robust growth over the past year, as Singapore’s sound dispute resolution framework, renowned for its neutrality and institutional credibility, continued to attract complex international arbitration cases and cross-border legal matters.
“We have seen, for instance, a slight diversification in the profile of clients,” says Sean Yu Chou, deputy managing partner at Big Four firm WongPartnership. “Russian parties affected by Western sanctions have sought advice on matters such as the application of Singapore law as the governing law of their contracts, and the migration of the agreed seats for arbitration to Singapore from traditional Western seats,” notes Chou.
Singapore’s geopolitical neutrality was the secret sauce for the ADR bonanza witnessed by the city. “There’s been a decade-long secular shift to Singapore being perceived as a trustworthy, sophisticated and neutral legal hub,” says Thio Shen Yi SC, joint managing partner at TSMP Law Corporation. “Recent geopolitical shifts, as the world divides itself into different ‘trust zones’, amplify the need for these qualities, particularly neutrality.”
The soaring demand for dispute resolution expertise, bolstered by the reassurance of the “Singapore brand”, gave star lawyers the impetus to break through the shackles of conflicts in full-service firms.
Joining a raft of dispute boutiques was Sreenivasan Chambers, founded by veteran litigator Sreenivasan Narayan SC, who previously headed K&L Gates’ association firm in Singapore. Another example was Paul Tan, former head of arbitration for Asia at Gibson Dunn & Crutcher, who joined One Essex Court as international counsel and arbitrator.
“In the disputes space, there is more disaggregation than consolidation,” says Thio. Driving this change were clients who became increasingly discerning in their selection of legal representation. Rather than engaging entire law firms, they began to display a growing trend of handpicking individual lawyers based on specific expertise.
This became evident in international arbitration cases, where clients started assembling bespoke legal teams, says Thio. “Mid-sized firms need to build up relationships and connectivity in the region and beyond, building personal goodwill and trust, instead of institutional presence.”
As the domestic market grew fragmented and competitive, many smaller local firms found themselves compelled to enhance their cross-border capabilities while seeking opportunities in overseas markets. Mid-sized Singapore firm PDLegal, having already opened an office in Thailand in 2023, entered into a Formal Law Alliance with Liverpool-headquartered Hill Dickinson.
“We can link our clients up seamlessly. And they trust that because we are in an alliance with Hill Dickinson. They are comfortable to engage our services,” says Gerard Quek, deputy managing partner at PDLegal.
Also driving firms’ regional expansion was a notable uptick in international clients requesting guidance on navigating the intricacies of conducting business in Southeast Asia, as the evolving geopolitical landscape prompted many to reassess their global business strategies and legal arrangements.
Securing a portion of that cross-border business could hinge on whether the partner maintains a direct relationship with the client, a strategy that firms with leaner teams could be better placed to execute. The obstacles, however, are also unique. “You’re not a brand and firm known outside of Singapore. And there are regulatory barriers. These are things that we cannot control but can strive to overcome,” says Quek.
International law firms, with their sprawling global networks, appeared to have the upper hand in capitalising on Southeast Asia’s rapid economic transformation. However, the recent closure of U.S. tax firm Butler Snow in Singapore again served as a sobering reality check in the face of the growing risk of complacency.
“2025 is going to be a volatile year. There will be a greater focus on profitability rather than absolute growth. The challenge is balancing the competing tensions of law as a business, and law as a calling.” — Thio Shen Yi SC, TSMP Law Corporation
Another notable example was McDermott Will & Emery. In 2021, it opened a Singapore office in a bid to relaunch its physical Asia presence, and by 2022, it had lured over at least seven partners from rival international firms. That resident partner count had dropped to just one by early 2024 following a string of departures.
It showed that even with upbeat vision, market potential, and government cheerleading, the Singapore legal market comes with its own set of idiosyncrasies, practical complexities, and a surprisingly modest appetite. Expansionist dreams, there-fore, might need to be tempered with a dash of local realism.
“2025 is going to be a volatile year,” says Thio. “There will be a greater focus on profitability rather than absolute growth. The challenge is balancing the competing tensions of law as a business, and law as a calling.” (SW)
JAPAN: POLE POSITION
As Hong Kong’s appeal waned and Singapore played it characteristically safe, Japan emerged as the new darling amongst international investors. And it was the very factor that once held Japan back - decades of sluggish economic growth – that made it a compelling draw.
Japan’s prolonged period of ultra-loose monetary policy, coupled with a persistently weak yen, had created favourable financing conditions for foreign investment. This economic climate allowed investors to acquire undervalued assets at attractive prices, bringing a significant shake-up to Japan’s traditionally conservative M&A landscape.
According to LSEG data, there were 154 cross-border M&A deals in Japan by December this year - a whopping 921 percent jump year-on-year - with a total deal value of $81.9 billion. The year’s first three quarters saw Japan’s four largest domestic law firms dominating the LSEG deal tables. Anderson Mori & Tomotsune led the pack, advising on 99 announced deals and successfully completing 89.
Private equity played a pivotal role in Japan’s burgeoning dealmaking scene. With the ongoing corporate governance reforms upending archaic business practices and placing greater value on shareholder returns, Asia’s second-largest economy became the favoured playground for global buyout houses yearning for cheap deals and value creation.
“The recent rise in international private equity to Japan has been the most noticeable change over the past 10 years,” says Jeremy White, global co-chair of M&A at Morrison Foerster in Tokyo. “We expect that this trend will continue and will have the most disruption in the short to midterm in the Japanese legal market.”
As sophisticated buyers of legal services, PE houses required complex and multifaceted legal support for their operations, presenting a significant opportunity for global law firms with key insights into international practice. This mature level of international expertise could prove challenging for domestic law firms with limited global experience. “We expect PE houses will increasingly seek services from firms like ours,” says White.
But while the market rush might have given international firms - many once found Japan an elusive legal market to crack - their moment under the sun, Japanese domestic firms entered a new era of international expansion.
Mori Hamada & Matsumoto, already established in New York, zeroed in on the West Coast’s thriving tech sector by opening a San Francisco office. Firms such as TMI Associates, Atsumi & Sakai, and Anderson Mori & Tomotsune established a presence in Brussels, responding to Japanese corporates’ growing need for antitrust expertise in navigating the European Union’s complex regulatory landscape.
Nishimura & Asahi, aspiring to transform from a domestic powerhouse into a global legal brand, unveiled plans to launch new offices in Hong Kong, London, and Brussels by early 2025. Atsumi & Sakai strengthened its foothold in Southeast Asia by establishing a branch in Ho Chi Minh City, Vietnam.
“Companies expanding globally need to implement strategic legal approaches that encompass perspectives across Japan, the U.S., Europe, and Asia, not just the specific regions where they have their headquarters, branches, or factories,” says Ryutaro Nakayama, managing partner at Nishimura & Asahi.
International expansion also allows these homegrown legal giants to diversify their revenue streams, offsetting the challenges posed by slow economic growth and rising competition in the home market.
Going into 2025, Japan’s economic outlook presents a complex scenario: while potential slowdowns in key markets such as China may pose challenges, these same factors could also drive increased asset allocation to Japan as investors seek stability and diversification.
On the domestic front, the Bank of Japan is toying with further interest rate hikes, a move that could tighten fundraising conditions and increase borrowing costs for businesses, potentially unleashing a fresh wave of bankruptcies.
Against this backdrop of economic uncertainty, the Japan legal market is poised for further disruption and transformation. “Market forces will dictate the future trajectory of the legal market,” says White. (SW)
INDIA: SEISMIC SHIFT
An immense talent war, the impending entry of international law firms, strategic expansions and mass exoduses marked a year that saw Indian law firms break revenue records, expand into new markets and build a working relationship with generative AI.
Perhaps the most notable was the industrial-scale expansion of top law firms, with Cyril Amarchand Mangaldas and JSA Advocates & Solicitors emerging as frontrunners in this competitive ecosystem, orchestrating bold moves that set new benchmarks for talent acquisition.
CAM’s strategic recruitment of a 50-member capital markets team led by Manan Lahoty from IndusLaw exemplified the firm’s resilience in the face of significant partner migrations, while simultaneously expanding its corporate, funds, disputes, and intellectual property practices across multiple cities. Similarly, JSA introduced a groundbreaking equity- and revenue-sharing model that facilitated the largest group hires of the year, attracting industry titans like Nisha Kaur Uberoi and Iqbal Khan.
The talent war also extended lower down the ranks, with law firms also seeing challenges in hiring at the principal associate and junior partner levels. A key trend was the movement of principal associates at tier one firms to partnerships at Tier 2 and Tier 3 law firms, owing to higher growth potential offered in an emerging legal market that is forcing the top firms to recalibrate pricing and hiring strategies.
Pricing became strategic based on practice area and client relationships. Lawyers found it tougher to compete in private equity, banking and finance, and domestic investment funds space as a large basket of smaller firms showed far more flexibility in terms of pricing. But top-tier capital markets practices continued to hold on to their rates, owing to the huge demand for work.
In-house counsel found that smaller and niche firms could offer a more personalised and client-focused approach that they may not get at a larger firm. This was highlighted by Bengaluru’s emergence as a focal point of legal market expansion, driven by the city’s burgeoning tech ecosystem.
Numerous law firms, ranging from established players to boutique practices, significantly invested in the city’s legal infrastructure, building new tech practice areas and doubling down on key groups such as private equity and real estate. Firms like Obhan & Associates, PLA Advocates, Antares Legal, and Wadia Ghandy & Co strategically launched Bengaluru offices, signalling the market’s immense potential and diversity.
Technological innovation, particularly artificial intelligence, marked another significant trend in the Indian legal landscape. Law firms cautiously but progressively embraced AI-powered solutions to enhance operational efficiencies.
Trilegal’s partnership with AI legal tech platform Lucio, and Nishith Desai Associates’ development of an in-house genera-tive AI chatbot named NaiDA, represented pioneering efforts in this domain. However, the market maintained a measured approach, recognising the critical importance of human expertise alongside technological capabilities.
“AI will not replace lawyers, but lawyers with the ability to utilise technology will replace lawyers without the ability to utilise it. We will be attracted to lawyers who understand and utilise technology to provide better solutions to clients.” — Akshay Chudasama, Shardul Amarchand Mangaldas & Co
Akshay Chudasama, managing partner of one of this year’s top-performing law firms, Shardul Amarchand Mangaldas & Co, says the use of technology and artificial intelligence is an important part of the firm’s practice and an eventuality that lawyers cannot hide from.
“AI will not replace lawyers, but lawyers with the ability to utilise technology will replace lawyers without the ability to utilise it,” he explains. “We will be attracted to lawyers who understand and utilise technology to provide better solutions to clients.”
Capital markets emerged as the standout practice area, riding the wave of robust initial public offerings and qualified institutional placements. CAM and SAM emerged as winners in terms of mandates, but a new stream of firms hopped on the capital markets bandwagon, aiming to capitalise on the buoyant market conditions.
Dealmaking remained a critical revenue stream, with a notable emphasis on domestic transactions and emerging practice areas like alternative energy, healthcare, ESG, artificial intelligence, financial technology, and data privacy.
In the near future, “investigations will see a tremendous amount of work,” Chudasama adds, saying the firm is strategically looking to build its already established white-collar practice.
Significantly, antitrust was a practice where firms recalibrated their approach. As enforcement matters dried up – a trend that has persisted over two years now – firms began bulking up their merger control offerings, which has become the bread and butter for antitrust lawyers.
For JSA, the antitrust practice has become a key strategic asset, enhancing its robust M&A services. Amit Kapur, JSA’s joint managing partner, notes that India’s economic growth and market consolidation have led to more merger filings and increased antitrust activity. He anticipates further growth in this area, driven by new merger control guidelines and significant changes in enforcement policies.
Kapur also points out that insolvency-related M&A, and sustainability-linked finance structures are two other areas of growth the firm has identified for the future.
The potential entry of international law firms into the Indian market added another layer of complexity and anticipation. While the initial announcement suggested increased competition and expanded options for international clients, the implementation remained somewhat nebulous, with the Bar Council of India yet to formalise specific guidelines.
Baker McKenzie, which has one of the largest and oldest international India practices, is extremely keen on getting feet on the ground once regulations allow, says the new chair of their India group Mini Menon vandePol.
The firm sees particularly significant potential in outbound India work and aims to use its capabilities across Asia, Africa, the Middle East, Europe and the U.S. to partner with Indian clients on their overseas investments and expansion. (ND)
INDONESIA: CUTTING EDGE
Indonesia’s legal market is undergoing a transformative evolution, driven by the country’s remarkable economic potential and increasing global significance. Projected to become the world’s fourth-largest economy by 2045, Indonesia is attracting unprecedented international investment, with a robust GDP expected to reach $4.5 trillion (PPP) this year.
This economic dynamism continued to reshape the legal landscape in 2024, creating a complex ecosystem of international participants, technological innovation, talent wars, and competitive repositioning.
Several international law firms entered the Indonesian market this year and expanded their local offerings. UK-based Withers associated with Karna Partnership, Japanese TMI Associates deepened its regional presence, and Allen & Gledhill launched AGI Legal.
“Indonesia’s robust economic growth and its position as a gateway to Southeast Asia have drawn significant interest from foreign law firms,” say managing partner Alldo Fellix Januardy and partner Melly Afrissyah at AVYA Law Firm.
The demand for improved legal services arose not only from offshore investors but also from sophisticated domestic businesses, explains Alfa Dewi Setiawati, partner at ATD Law in association with Mori Hamada & Matsumoto. “This need further incentivises Indonesian firms to improve their service standards, reshaping the competitive landscape of Indonesia’s legal service industries,” she explains.
Emerging practice areas drove significant growth. Technology law, data privacy, artificial intelligence, fintech, and environmental law began creating substantial opportunities. The recent Personal Data Protection Act particularly accelerated demand for specialised legal expertise in digital governance.
In dispute resolution, Andi Kadir, senior partner at Hadiputranto, Hadinoto & Partners, notes promising signs of innovation, highlighting “early indications of specialised arbitration centres” and that “local dispute resolution institutions are adopting digital technologies, with Indonesia’s e-court system enhancing efficiency.”
“The issuance of Regulation No. 3 of 2023 streamlined the enforcement process for arbitral awards, making it faster and more predictable - an encouraging step toward attracting foreign investment,” he adds. (ND)
MIDDLE EAST: GROUND REALITY CHECK
The Middle East’s legal landscape continued to undergo a transformative renaissance, driven by economic diversification strategies and a push to attract global investment. As countries like Saudi Arabia and the UAE reshaped their regulatory environments, international law firms navigated a complex but promising terrain of opportunity and challenge.
“The region is experiencing a prolific period of new laws and regulations, particularly post-COVID,” says Jody Waugh, managing partner of Al Tamimi & Company, one of the leading regional law firms in the Middle East. “This is primarily driven by a more youthful outlook from senior government members who bring new ideas, listen to the market, and drive change with energy and enthusiasm.”
The legal market’s expansion was most pronounced in Saudi Arabia, where the Kingdom’s Vision 2030 plan catalysed international law firms to flood into the market. Since the latter half of 2023, when the Kingdom started issuing business licenses to international law firms, 22 international firms have commenced independent operations in Saudi Arabia’s key cities.
In 2024, the Kingdom’s Ministry of Justice initiated a consultation process mulling a relaxation of the foreign ownership restrictions on law firms, which could do away with local hiring and ownership requirements.
Saudi Arabia’s Regional Headquarters (RHQ) Programme also presented a complex landscape for international law firms. Only a handful, including Kirkland & Ellis, Latham & Watkins, Baker McKenzie, Greenberg Traurig, and Clyde & Co., have navigated the programme’s requirements, which include a mandatory minimum headcount of 15 and the need to obtain two separate licenses - one for the office and another for the RHQ. This complexity made the program financially challenging for many firms.
But it’s not just Western interest in the Middle East; Asian countries, particularly China and South Korea, continued to rapidly expand their economic footprint. Bilateral trade between China and the Middle East reached approximately $500 billion in both 2022 and 2023, with Chinese companies increasingly investing in sectors ranging from infrastructure to new energy vehicles.
Similarly, the recent UAE-South Korea Comprehensive Economic Partnership Agreement is expected to create substantial demand for cross-border legal services. Indian legal giant Cyril Amarchand Mangaldas opened an office in Abu Dhabi earlier in the year, citing India’s growing economic corridor with the Middle East.
Recruitment became a critical battleground. Firms engaging in bidding wars to secure qualified Saudi lawyers, often raiding government ministries and established local practices. Eversheds Sutherland recently recruited Musab Aljammaz, while Dentons secured Abdullah Alsulaimi from the Ministry of Justice.
But, cultural and linguistic challenges remained substantial, given that business Arabic takes years to master, and local work practices can significantly impact operations. Law firms prioritised candidates with regional experience and local knowledge while emphasising diversity and hybrid working models.
Corporate/M&A lawyers remained in high demand, particularly in technology, infrastructure, and energy sectors. Saudi Arabia’s new Investment Law, effective February 2025, promises to streamline foreign investment by replacing complex licensing processes with a simpler registration system.
This aligns with Waugh’s observation about the region’s evolving legal landscape: “Our strategy remains anchored in a commitment to people, quality, and agility. We focus on delivering value to our clients through deep expertise, innovation, and flexible, responsive service.” (ND)
