24 ASIAN LEGAL BUSINESS – DECEMBER 2023 WWW.LEGALBUSINESSONLINE.COM SAUDI ARABIA The Kingdom of Saudi Arabia’s decision last October to reform its law firm licensing regime to allow international law firms to operate in the country directly or as part of a joint venture wasn’t an isolated one. It was part of the nation’s planned socio-economic shift to a modern, diversified marketplace, called Vision 2030 – a clarion call to the world to tap untouched sectors of a rapidly changing economy. Cut to a year later, the country’s Ministry of Justice in October said it had issued licenses to 15 international law firms to set up shop in Riyadh and Jeddah, with the same number of applications still under review. “The aim of licensing foreign law firms is to enhance the quality and efficiency of the legal profession, as well as to improve the business and investment climate in the Kingdom,” the MoJ explained, adding that the ministry has put in place digital infrastructure for law firms to be able to apply and obtain regulatory approval over the internet itself. The new licensing regime was the brainchild of Crown Prince Mohammad Bin Salman, widely known as MBS, in an effort to enhance the Kingdom’s competitiveness and attract more foreign investment. “This license comes at an ideal time as Saudi Arabia’s Vision 2030 programme of investments begins to gather pace and we continue to ramp up both our inbound and outbound work related to the Kingdom,” says Zaid Al-Farisi, a partner at King & Spalding’s new Riyadh office. The first firms to receive licenses this year were international giants Latham & Watkins, Herbert Smith Freehills, Clifford Chance and Dentons. At the time of publishing, the most recent were Londonheadquartered Mishcon de Reya and U.S. law firm Gibson, Dunn & Crutcher, which set up Riyadh outposts. CMS, Greenberg Traurig, Kirkland & Ellis, Squire Patton Boggs and Addleshaw Goddard have also announced plans to open in Saudi Arabia. Kirkland, the world’s largest law firm by revenue, announced plans to open its regional headquarters in Riyadh in October. Saudi Arabia is “one of the world’s fastest-growing economies and a rapidly modernising country that is becoming increasingly significant for Kirkland’s client base,” says John Ballis, chairman of Kirkland’s executive committee. INCREASING CLIENT DEMAND Indeed, most law firms agree that the movement of international business to Saudi in response to a rapidly opening economic climate has drawn them to the country. Addleshaw Goddard, which plans to launch in the country with a six-partner team, says the Kingdom Kingdom is a key part of the firm’s plans for the future. “Establishing an office in KSA is a direct response to existing client demand and a decisive next step for our business in the Middle East, allowing us to serve existing and future clients better,” says Andrew Johnston, the firm’s head for Middle East and Asia. “We have seen MENA revenue more than double in the last ten years, and we LAWYERS OF ARABIA Increasing investments from multinational corporations into Saudi Arabia, and the promises of diversified and sustainable growth are drawing international law firms to the Middle East’s largest economy, which has put together a new licensing regime to facilitate legal market growth. BY NIMITT DIXIT Image: Mohammed younos/Shutterstock.com
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