31 Asian Legal Business | December 2024 Cover Story 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) “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
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