33 ASIAN LEGAL BUSINESS – APRIL 2024 WWW.LEGALBUSINESSONLINE.COM by the Saudi Center for Commercial Arbitration (SCCA),” says Mikel. “There has been a concerted and wide-ranging effort by the Saudi authorities to modernise the judicial system and the arbitration regime to make them more transparent and efficient and to be in step with best international practices. This has significantly improved the standard and quality of adjudication in the kingdom,” he adds. The codification is also to attract more global capital to the country, as it looks to diversify its economy beyond oil. This will bring more international law firms with strong cross-border practices. “As the law aims to facilitate international transactions and align Saudi laws with global standards, it will create more opportunities for cross-border legal work. International law firms with expertise in cross-border matters and a global network will be well-positioned to assist clients with investments, joint ventures, and other transactions involving Saudi entities,” explains Abdel-Baky. The modern and predictable framework will also give comfort to international law firms that had previously hesitated due to concerns about legal uncertainties. As a result of these factors, the Saudi legal market is likely to become more competitive and diverse, with an influx of international law firms vying for a share of the growing demand for legal services. Abdel-Baky explains that heightened competition will lead to competitive pricing, specialisation, talent war and innovation in Saudi’s legal market. The market may also see more mergers and consolidations. “Smaller local firms may seek to merge or forge alliances with larger international firms to gain access to resources, expertise, and global networks,” he adds. LONG WAY TO GO While the CTL is a significant step towards modernising the legal framework and improving the investment climate in Saudi Arabia, there are several other potential changes and reforms that could further enhance the attractiveness of the country for domestic and international investors. Abdel-Baky says that the Saudi authorities need to keep doing more of what they are already doing, to stay on track with Vision 2030 goals. This includes continued alignment with international standards, further liberalisation of foreign ownership restrictions, streamlining of the regulatory process, development of specialised courts and tribunals, and further strengthening of corporate governance and transparency norms. “Simplifying and expediting various regulatory processes, such as business registration, licensing, and approvals, could reduce bureaucratic hurdles and enhance the ease of doing business in the country. I would note though that the kingdom has improved significantly those processes over the past few years,” explains Adbel-Baky. “Enhancing corporate governance standards, promoting greater transparency in business transactions and reporting, and combating corruption could improve the overall business environment and instil confidence in investors,” Adbel-Baky says. “In addition to the Civil Transactions Law, a comprehensive review and modernisation of other relevant laws, such as those governing foreign investment, taxation, labour, and bankruptcy, could create a more cohesive and investor-friendly legal framework,” he adds. MIDDLE EAST Image: Previtte/Shutterstock.com “As the law aims to facilitate international transactions and align Saudi laws with global standards, it will create more opportunities for cross-border legal work. International law firms with expertise in cross-border matters and a global network will be well-positioned to assist clients with investments, joint ventures, and other transactions involving Saudi entities.” — Mahmoud Abdel-Baky, Gibson, Dunn & Crutcher
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