In the past week Addleshaw Goddard, Eversheds and SNR Denton have all announced plans to bulk up in the region.

Meanwhile, Trowers & Hamlins, which closed its Jeddah base recently, is understood to be feeling the pressure of increased ­competition from international firms in Dubai and Riyadh.

Another firm that has withdrawn from the region in recent months is Gide Loyrette Nouel, which closed its Abu Dhabi, Dubai and Riyadh offices in October 2010.

Last month Eversheds announced it had merged with Middle East legal consortium KSLG (TheLawyer. com, 25 May). The merger gave Eversheds offices in Dubai, Iraq, Jordan and Saudi Arabia to add to its existing presences in Abu Dhabi and Qatar.

KSLG United Arab ­Emirates member firm Khasawneh & Associates and Sanad Law Group in Jordan and Iraq will become part of Eversheds’ LLP and will be known as Eversheds KSLG. Saudi firm Dhabaan & Partners will operate as an associated office due to the country’s licensing restrictions.

As revealed by The Lawyer last week (30 May), SNR Denton has relocated its Africa committee co-chair Paul Bugingo to Dubai to broaden its Africa and Middle East practices, while Addleshaws has set out its stall to launch in Dubai to focus on international ­arbitration (The Lawyer, 24 May).

Eversheds international head Stephen Hopkins said the firm had assessed the economic and political risks of opening in the Middle East and considered it worth the investment.
Hopkins added that the “fundamental strength” of the region’s economy made it a natural choice for the firm’s expansion plans.

“A lot of firms expanded extremely rapidly just before the recession hit,” he noted. “They’ve had to rethink their strategies in the past couple of years.”

Hopkins said Eversheds had considered a range of options in the region, but had found a good “cultural fit” with KSLG.

He added that the firm had looked at ways to merge with previous Saudi alliance partner Hani Qurashi Law Firm, but had decided instead to wind up that ­relationship.

Saudi Arabia has been the main source of problems for Trowers, which closed its Jeddah office less than a year after its launch. Four ­partners have left the firm’s Dubai office in the past two years, followed by four associates in the past few weeks, and there have been recent redundancies in Riyadh.

A source in the Middle East said that Trowers, which has been in the region for several decades, had suffered from the influx of larger global players in recent years.

Trowers head of international Martin Amison insisted that the firm still has a “substantial presence” in the region.

“We have more than 150 people living and working in the Middle East and in the medium term we expect that number to grow,” he emphasised. “We certainly don’t expect there to be much of a change up or down this year.”

Clifford Chance’s establishment of a professional partnership with Saudi Arabian firm and long-standing association partner Al-Jadaan made headlines early last year.

The move allowed Clifford Chance to formally establish its presence in the kingdom through its own legal framework, and own 75 per cent of the business.

The stability this brings the firm should not be underestimated. It could set the standard for every future launch in Saudi Arabia.

Clifford Chance is now no longer reliant on a single Saudi lawyer to sponsor it and head up its office and bank accounts. If its relationship with one of the Saudi nationals comprising the 25 per cent Saudi stake of the business disintegrates, it is no longer without a vessel for its work in the country. Instead, it can locate another suitable Saudi candidate to take the lawyer’s place. All of a sudden, the volatility that has plagued Western firms trying to establish a bridgehead in the Kingdom of Saudi Arabia (KSA) can be managed.

The new team includes two Al-Jadaan partners, banking partner Abdulaziz Al-Abduljabbar and corporate and capital markets specialist Khalid Al-Abdulkareem. Mohammed Al-Jadaan remains managing partner of Al-Jadaan and, together with the rest of the Al-Jadaan team, will now focus on litigation, mediation, strategy and structuring-focused advice. He will continue to support Clifford Chance in an advisory capacity.

Clifford Chance Riyadh managing partner Tim Plews told The Lawyer last year that he believed the firm’s professional partnership with Al-Jadaan would set a trend.

“There’s a new generation of Saudi lawyers who will try to sell this as their model,” he commented.

The Saudi legal market can be volatile, but while Clifford Chance’s solution is clearly an evolutionary step in the legal market in the kingdom, is it a feasible model for every firm and how quickly might it take root?

Furthermore, what is the best approach to setting up in the kingdom, how are firms choosing to establish themselves now, and how might this change?

This report takes into account key trends in the Saudi market and outlines why the kingdom is such a difficult place for firms to conquer.

How to secure a licence

A Clifford Chance-like structure will not necessarily suit Saudi lawyers since they will have to sign an arrangement that allows them less freedom. Currently, firms that choose not to follow Clifford Chance’s lead (or who cannot find a local lawyer who is happy with such a structure) but still want to establish themselves in Saudi need to find an association partner.

This partner must be a Saudi national. Because the law in Saudi Arabia is such a fledgling profession, the number of Saudi-born lawyers is low. The number of Saudi-born lawyers who are also suitable candidates for international firms to partner with – in other words, who have relevant experience of cross-border work – is even lower.

Rules for setting up an association require firms to be in line with local regulations. International firms must apply to the KSA Ministry of Justice to validate their association and establish a vehicle to do business in Saudi. The process of setting up an association and securing a licence is lengthy, taking anywhere from six months to a year.

Firms must also apply to the Saudi Arabia General Investment Authority (SAGIA), as does any foreign company wishing to set up in Saudi, for a foreign investment licence. The steps are numerous and involve compliance with many government departments.

Once established, the distinction between Saudi and foreign lawyers must be explicit. Firms need to be able to show what work Saudis perform and what work international lawyers do. What’s more, all front-facing work must be supervised by the Saudi associated partner, even if an international lawyer has done the bulk of it.

When setting up an association, firms have historically scouted the Saudi market for likely candidates and established relationships in a relatively straightforward way: network, relationship-build, pair off.

However, in an effort to minimise the volatility the classic association model can throw up (more of which later), firms have begun to hire Saudis as partners and then use them to establish a base. The partnership is still an association, as regulation requires, but by hiring the lawyer as a partner, firms engineer a cultural and relational shift.

One example of a firm that has taken this leap is Ashurst, which hired Faisal Adnan Baassiri in 2012 to establish its Jeddah office. Baassiri was head of legal at a private wealth management company in Jeddah before being poached by Ashurst and had done business with the firm in the region for years.

King & Wood Mallesons SJ Berwin’s (KWMSJB) recent launch was engineered by two office co-heads, one of whom, the Saudi-qualified Majed Almarshad, was hired by the Dubai office of legacy SJ Berwin in 2011. According to Almarshad, SJ Berwin had been eyeing Riyadh for years and it was the first international office the newly merged firm chose to establish.

In 2012 Allen & Overy (A&O) launched an association with Zeyad Khoshaim, made a partner in 2010, after Linklaters effectively poached A&O’s association with Abdulaziz AlGasim Law Firm, which was up for renewal after a five-year tenure. Khoshaim was formerly employed by Abdulaziz AlGasim.

These tie-ups represent a middle ground between a Clifford Chance-style professional partnership and a classic association, and the firms to establish them are among the most recent to launch a presence in Saudi Arabia. However, the practice of setting up a classic association has not disappeared, as is evident from McGuire Woods’ launch in May 2013, signing a co-operation agreement with local outfit the Law Firm of Badr Alarishi.

Arrivals: at a glance

Year formal association 

established

1981 Baker & McKenzie

1989 White & Case

1996 Clifford Chance

2001 Baker Botts

2005 Norton Rose Fulbright

2006 DLA Piper

2007 King & Spalding

2007 Allen & Overy

2007 Dentons

2008 Freshfields

2009 Eversheds

2009 Hogan Lovells

2009 Clyde & Co

2010 Latham & Watkins

2011 Simmons & Simmons

2011 Jones Day

2011 Vinson & Elkins

2012 Squire Sanders

2012 Linklaters

2013 McGuire Woods

2013 Ashurst

2014  KWMSJB

It is evident from the table above that, beyond the old-timers of the 1980s and 1990s there was a significant uptick in interest in Saudi from 2006 onwards, continuing until now. This can be at least partially explained by the reign of King Abdullah, seen as a reformer, who has implemented numerous changes in policy since 2005 and has focused on foreign investment.

There is no obvious pattern that can be seen in terms of headcount or partner hires and length of time firms have been established, indicating just how unpredictable the market can be.

White & Case, Baker & McKenzie and Clifford Chance were the first firms to make a foray into the Saudi market and they remain the largest, but aside from these three, size and year of establishment do not correlate. Norton Rose Fulbright’s office has existed since 2005 but currently contains five lawyers, while Clyde & Co’s headcount is twice that number, although it was established four years later.

It is not a case of the biggest or most elite leading the crowd to Saudi. While the first Western firms to establish a presence in the region were American, from that point on, Brits took the lead until around 2010, when Latham & Watkins decided to launch in the kingdom, poaching White & Case’s sponsor Mohammed Al-Sheikh, partner Christopher Langdon and the maj-ority of the associates from White & Case’s Riyadh office.

While Latham’s wholesale poaching is among the standout relationship breakdowns in the kingdom, volatility is a huge concern more generally.

Troubled history of associations

As with any pairing, differing expectations and perspectives result in problems. An association is a naturally volatile model as the agreement relies on individuals and one common stumbling block thrown up by the pairing of a local firm with an international one is the difference in client strategy.

International firms usually come to the kingdom with a major client relationship already established. As such, they will do everything in their power to keep that client happy, and quality control and availability are paramount. For the firm’s local partner that client may be no more important than others on its roster – and may not naturally fit within its client base at all.

Corpses of former associations litter the Saudi market, with many international powerhouses running into trouble.

These disputes have come to the fore since 2012, with bickering and infighting among firms reaching a new level. Before then there were occasional instances of this, such as Latham’s takeover of White & Case’s team and DLA Piper’s rocky relationship with its partners. But as the market has become increasingly populated by Western firms, the exits and arguments have piled up.

A&O and Linklaters ran into difficulties in December 2012 when Linklaters effectively poached A&O’s association with Abdulaziz AlGasim Law Firm, which was up for renewal after a five-year tenure.

A&O responded the same month by launching a tie-up with Zeyad S Khoshaim Law Firm. Interestingly, the lead partner of its new sponsor, Khoshaim himself, joined A&O as a partner in 2010 from its ex-sponsor Abdulaziz AlGasim.

DLA Piper, although only launching a base in the kingdom in 2009, has been through the wars, chalking up three associations already. In 2006 it announced it was launching with Abdulaziz Al-Fahad, but by 2008 the relationship had broken down.

In response, DLA Piper sent in Saudi lawyer Abdulaziz Al-Bosaily, who had been a DLA partner for a year since joining from Clifford Chance, to save its practice. However, in 2009 he switched to Clyde & Co to launch its Saudi practice, where he remains, and was replaced by Eyad Reda, DLA’s current Saudi sponsor.

Other break-ups include that of Canadian firm Fasken Martineau and Herbert Smith Freehills (HSF), both of which cut their losses in KSA last year. Herbies’ split with partner firm Al-Ghazzawi Professional Association (AGP) was said to be amicable, with the firms saying their strategies had developed in different ways. HSF continues to keep “friendly ties” with AGP and is looking for other ways to maintain a presence in the market.

Fasken Martineau, however, came to blows with Osool Law, with the Canadian firm saying its clients had driven the change and the erstwhile Saudi firm saying Fasken had marketed itself outside of the arrangement.

Trowers & Hamlins, with its Middle Eastern presence still strong in Abu Dhabi, Bahrain, Dubai and Oman, closed its Jeddah office in 2011, less than a year after opening, citing low work levels. At the time it sent office head Julian Sweeting back to London, saying it would service its clients from Riyadh via its association with Feras Alshawaf Law Firm.

One year later, the firm closed that office too. UAE head Abdullah Mutawi told The Lawyer at the time that its one remaining Saudi associate had become frustrated at the firm’s failure to deploy a partner to the office and had deserted it in favour of local ally Feras Alshawaf. Trowers’ tie-up with Feras Alshawaf was dependent on it having at least one employee in the country so the alliance came to an end.

Entering a professional partnership or hiring an association lawyer as a partner are both solutions that firms have engineered in response to the volatility question. The key benefit of switching to a professional partnership system is that it gives the assurance that there is a system in place that does not rely on a particular individual.

How to work the association model

For firms that are in association models with non-partner lawyers, how to best treat the alliance so it remains fruitful is the million-riyal question. Firms need to recognise that just by signing an alliance agreement with a Saudi firm the local firm is not subsumed into its network. It is not a merger or takeover in which the bigger firm’s aims and wishes take priority. Instead, treating an association partner more like a client may be key to conquering the Saudi scene.

Firms that have succeeded in conquering the Saudi market are those that have had a lengthy presence in the kingdom and have engineered key relationships with government departments or government-owned entities such as Saudi Aramco or the Ministry of Industry.

The firms best known as possessing such relationships are the usual suspects: Saudi nationals within the legal industry commonly list A&O, Bakers, Clifford Chance and White & Case as the key Western players.

Loyalty counts for a lot in the kingdom and if a firm enters the market hoping to win big clients through networking it may be disappointed. With speculation that visa requirements will be streamlined, Western law firms’ interest in setting up in Saudi will only heighten. Newcomers will have to study others’ experiences very closely.

General visa guidelines

 All visitors to Saudi Arabia must have a visa, except for nationals of the Gulf Cooperation Council states which include Bahrain, Kuwait, the Sultanate of Oman and the UAE.

To obtain a visa you must have a sponsor in the country. Your sponsor will be responsible for much of the required paperwork, but you will have to provide a great deal of documentation, often including marriage and birth certificates, and copies of your employment contract and academic or professional qualifications. Applicants for certain visas also require a comprehensive medical examination.

Any unaccompanied females or wives travelling to join their husbands must be met at the airport by the husband or a sponsor and have confirmed onward reservations up to their final destination in Saudi Arabia. In the case of a married couple, both spouses should carry a copy of their marriage licence whenever in public in case the mutawwa’in, or religious police, request proof of their relationship.

Although many working in Saudi Arabia choose not to bring their spouses or children for security reasons, those who wish to invite members of their family to visit or reside there must submit a request through their sponsor to the Ministry of Foreign Affairs in Saudi Arabia. If this request is approved, each family member must provide documentation as specified by the Saudi embassy.

Information provided by www.worldofexpats.com

Changing investment priorities

 The reason for the shift in priority from energy and petrochems to infrastructure and education is an increasing population, half of whom are under 25. This sector along with education and infrastructure will grow rapidly, as will healthcare as the country looks to take advantage of its oil-generated wealth, given the finite nature of the resources and the political uprisings of its neighbours.

The boom in the education sector, which has seen international clients looking to set up programmes with local Saudi education establishments, ties in with the kingdom’s historic employment – read unemployment – problem.

Of the 2 million jobs created in the country in the four years from July 2009, 1.5 million went to non-Saudis. Creating economic opportunities for Saudi nationals is of paramount importance.

The Saudi government knows it needs to build its knowledge economy. Its nitaqat policy, which expels foreign workers and fines companies that do not hire enough Saudi workers, was established in the hope of encouraging the private sector to hire Saudi nationals and not import foreign expertise.

The image promoted by the expulsion of foreign workers, which make up about a third of the country’s 30 million population, conflicts with the government’s stance on investment. Although Saudi Arabia could not be said to be an easy place to do business, foreign investment is welcome.

Indeed, since 2005 the government has reformed regulation hugely to allow for more foreign direct investment. It maintains a ‘negative’ list, prohibiting foreign companies from entering certain industries, but is hardly unique in this. Restricted industries include media, tourism and the military, but the list is vastly reduced from its previous version. There are now about nine industries closed to foreign investment, with many caveats to the bans, compared with about 30 before 2005.

Also, compared with the stance on investment taken by some members of the Gulf Cooperation Council (GCC) states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE), the Saudi perspective on foreign investment is lenient. Some GCC nations require 51 per cent local ownership for certain investments, while in the kingdom it is possible for a company to establish 100 per cent ownership.

Outbound investment is in flux as many Saudi clients look outside the kingdom and the GCC. The country is at a stage in the economic cycle whereby its investments beyond the region is coming to the fore, whether that is in Africa, Asia, Europe or the US.

Its three biggest trading partners are China, Korea and the US, while markets that offer particularly attractive returns include western African nations, which are attracting a number of Saudi investors, particularly on sovereign-related deals, in the infrastructure and mining sectors.

Abraham will start his four-year term on 1 May after a regional partner vote. He will take over from Lovett, who continues as regional head of litigation and dispute resolution.

Abraham won a place on the firm’s partnership committee two years ago after being made up in 2005 (29 February 2012). He will have to stand down from that position and give up his place on the audit committee but will remain on the firm’s global finance practice leadership group.

Lovett was unable to stand again for the role after serving two terms (15 June 2010). The litigation partner had headed the firm’s partnership in the region since 2005, having arrived at the Dubai office a year earlier.

Clifford Chance has been making strides in the Middle East over the past year. Earlier this year it established the first Saudi and foreign lawyer partnership in Saudi Arabia (10 March 2014), transferring longstanding co-operation firm Al-Jadaan’s practice into the firm (6 January 2014).

The firm also has offices in Abu Dhabi, Casablanca, Doha, Dubai and Istanbul and has 120 lawyers in the region.

Lovett has overseen the growth of the Dubai team from one to four offices. In 2011 he oversaw the opening of the firm’s office in Qatar.

Abraham said: “My experience in the region and roles on Clifford Chance’s partnership council and audit committee have given me great exposure to the global pressures our clients in the region are facing. We have a strong on-the-ground team of over 120 lawyers and a solid commitment to the Middle East.”

He will take up the role at the same time as Matthew Layton, who was elected in November last year to replace outgoing David Childs, takes over as Clifford Chance’s new global head (28 November 2013). 

The Oman office continues the firm’s international expansion strategy, which also saw it launch in Istanbul last year (7 November 2013) as well as Dubai (17 September 2012).

Like Dubai, Oman will have an energy, projects and financial institutions focus. Both offices will work closely together, with the team led by energy, projects and construction practice group manager Stephen Millar, Dubai managing partner Matthew Culver, and consultants Ben Ewing and Amur Al Rashdi.

Ewing trained at CMS before moving to Akin Gump Strauss Hauer & Feld, where he was a lawyer, while Al Rashdi joins CMS from local firm Khalifa Al Hinai.

Millar said the practice areas were growing across the Middle East and were strategically important areas for both the firm and its clients.

“Our strategy is to be where our clients need us to be, and a presence in Oman complements our global offering,” he added.

A number of firms have launched in Oman in the last year. Addleshaw Goddard took a team from Trowers & Hamlins to launch in early 2013 (15 January 2013), US firm Duane Morris entered via a joint venture (27 March 2013) and Middle Eastern firm Al Tamimi & Company turned to Dentons for its Oman launch (29 October 2013).

For more on the Middle Eastern legal market, read this week’s cover story on Saudi Arabia, Keys to the kingdom.

Baker & McKenzie did it first in 1981. Since then a further 21 international firms have set up shop in Saudi Arabia, the most recent being King & Wood Mallesons SJ Berwin, which announced plans to open there in December.

Clifford Chance broke the mould when it set up a professional partnership with its longstanding Saudi association firm, Al-Jadaan. That move essentially allowed it to establish its own legal framework in Saudi, taking a 75 per cent ownership of the business.

Today, The Lawyer examines this complex yet lucrative market, looking back at key developments and looking forward at where opportunities lie for future growth.

What does it take to be a success in Saudi? You will find all you need to know in The Lawyer today.
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Saudi Arabia: Keys to the kingdom

Saudi spenders

Clifford Chance launches mixed Saudi Arabia partnership

Saudi Arabia grants first woman full lawyer practice rights

Ex-Allen & Overy lawyer takes top slot at Saudi energy company

The transaction is thought to be the largest-ever Rule 144A sukuk offering, which allows it to be sold to international investors. 

Allen & Overy advised longstanding client SEC on the deal, led by the firm’s European Islamic finance chief Atif Hanif, with capital markets partners Sachin Dave and Jamie Durham. 

The partners were assisted by senior associate Cieren Leigh and associates Tracy Tond, Anne Korenblit and Edana Richardson. Partner Zeyad Khoshaim and associate Hosam Ghaith advised from the firm’s associated base in Riyadh. 

Hanif said: “The bond had a 30-year tranche, which is the longest tenure of any international sukuk issuance. To take this legal structure to markets like the US and get a 30 year issuance is quite groundbreaking. They tend to be 10 years at the long end.” 

Latham picked up a role for the joint lead managers from the firm’s New York, Dubai and London offices. Finance partner Harj Raj and capital markets partners Nomaan Raja and Lene Mathasen led on the deal alongside associates Lee Irvine, Muhannad Alnajjab, Ibrahim Soumrany and Theo Kalic. 

Meanwhile, Walkers asset management partner Daniel Wood and associate Ciaran Bohnacker, both based in Dubai, advised as Cayman counsel to the issuer. The firm’s listing services chief, Theresa Redmond, advised on aspects relating to the listing of the sukuk certificates on the Irish Stock Exchange from Walkers’ Dublin office. 

Allen & Overy has advised SEC on all five of its international sukuk issuances and on three of its four domestic issuances after the client switched firms alongside relationship partner Atif Hanif when he moved from Baker & McKenzie in 2008. 

There has been a steady increase in activity related to the sukuk market in recent years. In January 2014, Linklaters won a mandate from HM Treasury to advise on the UK’s first-ever sovereign sukuk issue (31 January 2014). 

Capital markets partner Elaine Keats is leading on the transaction alongside Linklaters’ Islamic finance chief Neil Miller and capital markets partner Richard O’Callaghan, both based in Dubai. 

Luxembourg is also currently in the process of seeking state approval to issue an Islamic bond, while South Africa is planning to sell its debut international sukuk in 2014.

The firm already has a presence in Bahrain and Qatar, launching the latter office just last year (15 August 2013).

The two firms have worked together in the past, particularly on corporate, finance, litigation and IP issues, but will now work in formal association.

Al-Soaib chair Mohammad Hamad Al-Soaib said the firm had been “actively looking” for ways to work with international firms and that formalising the relationship with Charles Russell would benefit its clients.

Charles Russell’s Bahrain office head Patrick Gearon said the relationship demonstrated the firm’s committment to the region, and Saudi Arabia was a “natural next step” to its existing Middle East presence.

Al-Soaib was established in 1995 and has offices in Riyadh and the eastern port city of Al Khobar.

Charles Russell is joining over 20 international firms with a presence in Saudi Arabia, the vast majority also through formal association agreements with a local firm. Last year Ashurst (12 November 2012), King & Wood Mallesons SJ Berwin (28 October 2013) and US firm McGuire Woods (12 March 2013) all launched in the kingdom. Meanwhile Clifford Chance broke new ground by establishing its own mixed Saudi Arabian partnership (6 January 2014).

Separately, the firm has made two hires for its Bahrain office. Ashley Freeman has joined the firm from the Central Bank of Bahrain, where he was general counsel, to head up its Islamic finance practice. He has become a senior counsel at Charles Russell.

The firm has also hired banking and Islamic finance specialist Wesam Alshafei as a legal consultant from local Bahrain firm Zubi & Partners.

For more on the Saudi legal market, read our in-depth analysis, Keys to the Kingdom

Jobson left Eversheds on 30 June and the firm has no plans to install a new chairman in the region. He will start work at Clydes on 1 September.

Jobson has been practicing litigation and arbitration in the Middle East for 10 years, based out of Abu Dhabi and Doha. His clients include regional and international energy companies, financial institutions, protection and indemnity clubs, ship owners and charterers and logistics organisations.

His arrival at Clyde & Co’s Abu Dhabi office takes the number of partners to six, out of 13 for dispute resolution in the region and 40 in total.

Eversheds Middle East managing partner Nasser Ali Khasawneh said: “We had been discussing a possible return to the UK for Chris, and other opportunities in the region, but he has decided that the time is right for him to take on a new challenge.”

Jobson is returning to Clyde & Co having spent the early part of his career working in the firm’s Dubai and Hong Kong offices. 

He said he was looking forward to working with the team at Clydes and saw it as a “platform from which to build”.

Clyde & Co Middle East head of dispute resolution and MENA board member Chris Mills said the dispute resolution practice was key to the firm’s strategy in the region.

Eversheds has been moving towards installing local lawyers as regional heads in its international offices in recent years.

Ali Khasawneh was deputy managing partner in the region until 2012 when he replaced Jobson as managing partner, and the latter became the firm’s Middle East chairman (8 October 2012).

The firm also appointed corporate projects partner Dani Kabbani as managing partner of its Qatar office earlier this year.

Simmons has been working in alliance with Jeddah-based Hammad & Al-Mehdar since May 2011 (5 May 2011).

Subject to regulatory approval Hammad & Al-Mehdar’s Riyadh office will open in October.

The office will focus on both firms’ primary sectors of energy and infrastructure, financial institutions, asset management and investment funds, life sciences and technology, media and telecommunications.

Simmons & Simmons Middle East chief Andrew Wingfield highlighted Saudi’s strategic importance as a G20 member and the largest economy in the Gulf Cooperation Council.

“The development of this new office in Riyadh was naturally the next step in building on our alliance in the Kingdom as many of the firm’s clients already have operations in Riyadh,” he added.

Simmons also has alliance firms in Japan and Portugal. It tied up with Tokyo-based TMI in September 2001 (24 September 2001) and Sociedade Rebelo de Sousa in Portugal.

Simmons unveiled a 7 per cent increase in turnover for the 2013/14 financial year, with revenue rising to £268.6m from £250.3m in 2012/13 (8 July 2014).

Net profit also went up by 13 per cent, to around £75m from £66.2m, while average profit per equity partner (PEP) increased by 5.3 per cent to £553,000 from £525,000 last year.

The results mark a turnaround for Simmons, which saw revenue decline in 2012/13 (9 July 2013), while net profit and PEP remained roughly static.

Riyadh-headquartered Al-Enezee was the affiliate of legacy Squire Sanders before the merger with Patton Boggs in June this year (27 May 2014).

The firm confirmed today (19 August) that Al-Enezee has been dropped in favour of Al-Thebity. It is understood that Al-Enezee will continue operating as an independent Saudi practice.

Khalid Al-Thebity has been appointed managing partner of Squire Patton Boggs’ Riyadh office. His practice includes corporate, commercial and financial law, as well as real estate and Saudi-specific litigation and arbitration, with a particular focus on assisting clients in the energy, construction and real estate industries. The firm will continue with the same headcount of four lawyers and one managing partner.

Squire Patton Boggs has approximately 25 lawyers based in the Middle East, providing legal and policy advice to governments, government-owned corporations, investment institutions and private business clients throughout the region.

Legacy Squire Sanders was present in Saudi Arabia for over 20 years. The firm signed its first cooperation agreement with local firm Abdulaziz Al-Assaf 12 years ago, although the alliance broke down and Abdulaziz Al-Assaf went on to form an alliance with legacy Norton Rose (10 December 2007). Squire Sanders tied up with El-Khoury & Partners’ Middle East and North Africa (Mena) practice two years ago (10 October 2012).

Legacy Patton Boggs took on Middle East lawyers from dissolving Dewey & LeBoeuf to establish its first Saudi Arabia association in 2012 (14 June 2012).

The Saudi Arabian legal market, with its strict regulations, is not the easiest place for a Western law firm to do business. After its merger in June, Squire Patton Boggs found itself faced with a dilemma as both legacy firms had a Saudi association formed in 2012. One had to be dissolved.

Yesterday the firm announced that it was continuing the relationship with legacy Patton Boggs’ Saudi affiliate, Khalid Al-Thebity. The two firms tied up in 2012 as Dewey & LeBoeuf’s Saudi team quit the collapsing US outfit.

Meanwhile Squire Sanders’ associated firm, Al-Enezee, is set to forge a new path as an independent firm.

Of course that doesn’t mean another international firm won’t come knocking on Al-Enezee’s door in the near future. Saudi associations are often fluid – back in 2012, Linklaters signed a deal with Allen & Overy’s associate Abdulaziz AlGasim Law Firm, with A&O choosing to set up a new alliance with a local firm led by partner Zeyad Khoshaim.

Squire Sanders also had a complex history in the country, having originally moved in via a deal with Abdulaziz Al-Assaf. That relationship later broke down – as did Abdulasziz Al-Assaf’s later tie-up with legacy Norton Rose – but Squire Sanders cemented its Riyadh presence in 2012 through a deal with Al-Enezee.

With international firms continuing to bang on Riyadh doors, such as Charles Russell in June, demand for a local sponsor should remain high.

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The office will be headed up by partner Andrew Baird, who relocated to Dubai in April to help navigate the jurisdiction’s regulatory requirements. 

Baird will be supported by two associates – one relatively junior who specialises in maritime and offshore work, and another more senior with a wider rage of finance experience, including asset and Islamic finance. 

Baird told The Lawyer: “We’re bringing people from within the firm as it’s very important to have the DNA of WFW firmly embedded in the new office”. 

He emphasised that the launch is a result of client demand, adding: “Over time, a group of clients made it clear that they’d much prefer to see us on the ground over here and in our own office.” 

WFW acts for a number of international and local banks in the Middle East, particularly in respect to marine and asset finance matters. It also has a close relationship with a number of shipping firms, including national shipping companies. 

Baird also specialises in Islamic finance, which will form a large part of the Dubai office’s offering. Having kicked off his career at WFW Baird quit to join Berwin Leighton Paisner in 2001, but returned to his original firm in 2011 to bolster its asset finance group. 

The team is currently renting office space in Dubai’s DIFC zone. While Baird says said “there’s no plan to flood the office with lots of people” he expects to grow the outpost through both organic and lateral hiring. 

Earlier this month, Nabarro doubled the size of its Dubai office in a bid to bulk up its constructions disputes practice (4 September 2014).

Antoaneta Proctor will join the Taylor Wessing team this month as a partner from Wragge Lawrence Graham & Co, Elaine Dobson will join the firm as head of residential property from Bircham Dyson Bell, and Nick Carnell has joined the firm’s Dubai office as head of construction from Kennedys.

Proctor and Dobson’s appointments takes Taylor Wessing’s UK-based private client practice group up to 10 partners and 30 fee-earners.

Dobson replaces the retiring Joanna Ward as head of residential property. She specialises in transactional and landlord and tenant issues, as well as complex enfranchisement work. Dobson joins Taylor Wessing from Bircham Dyson Bell, where she was a partner for almost seven years.

Proctor specialises in international tax and trusts, multi-jurisdictional wealth planning, family governance and business succession. She was previously a senior associate at Wragge Lawrence Graham & Co and legacy Lawrence Graham.

Carnell joined the firm’s Dubai office as head of construction, bringing the total number of partners in the office to seven following the November 2013 appointment of Nabarro partner Habib Ullah to lead the finance team. 

Carnell was a partner at Kennedys for over four years. He has been in the region for nearly 10 years and has extensive advocacy experience in all forms of dispute resolution. 

Kim joins from Ashurst where she was a partner in energy, resources and infrastructure in the Middle East. She also has in-house experience as senior legal counsel for Shell. 

Kim returns to A&O’s Dubai office as a partner after an absence of seven years. She was previously an associate in the office from 2003 to 2007. Kim’s significant expertise in energy transactions along the entire oil and gas value chain strengthens A&O’s global integrated energy practice.

The firm said the hire was a response to the increase in demand for work in the Middle East.

A&O’s head of energy projects for the Middle East, Ian Ingram-Johnson, said that her expertise in projects development and energy M&A within the oil and gas sector “will allow us to offer clients further expertise in the area of upstream oil and gas”.

A&O has had a Middle East presence since 1978. Its global projects group comprises over 70 partners and includes around 250 lawyers. 

Dentons energy associate Nick Kramer joins the firm as a partner and head of commercial and construction in the Middle East. He is joined by local counsel Aarta Alkarimi and UK-qualified barrister Yousaf Said have joined nine months after the firm opened in the region (21 November 2013).

The firm opened the office at the beginning of the year with two partners and one associate with construction partner Terry Fleet heading the office. It followed in the Singapore office’s footprints (20 September 2010), focusing on construction and engineering, development, dispute resolution and infrastructure.

Before launching in Singapore in 2010 Nabarro had only one overseas base in Brussels and alliance relationships with GSK in Germany, August & Debouzy in France and Nunziante Magrone in Italy.

Kramer worked at Dentons for 12 years, nine of which were in Dubai. He specialises in development, infrastructure, power, energy and oil & gas projects and has worked for clients throughout the region, including the UAE, Oman, Qatar, Saudi Arabia and Jordan as well as Africa.

Said has practised in Dubai for 11 years and advised many international companies on a range of legal matters related to the setting up of Free Zone companies, branch offices, Limited Liability Companies and Special Purpose Vehicles.

The Middle East continues to generate a very small proportion of firm revenue and Nabarro has been aiming to build up its contentious and non contentious practice in the area.

Nabarro said it would consider tying up with a foreign firm in Singapore to bolster its international presence. Both offices connect to Nabarro’s new infrastructure, construction and energy sector group, which aims to tie together the firm’s contentious and non-construction practice.

HRH Prince Abdulaziz Bin Mishal bin Abdulaziz Al Saud has so far lost fights to have his case against fellow investor Faisal Almhairat’s company Apex Global Management heard in private and cited sovereign immunity to avoid complying with court orders (15 January 2014).

Yesterday the prince was given leave to appeal to the Supreme Court. The October battle will centre on whether the prince will have to comply with a series of orders made by Mr Justice Vos, Mr Justice Norris and Mr Justice Mann last year.

The legal roster for the colossal battle has changed dramatically since the Prince first launched the case against his fellow investor in 2011. Prince Abdulaziz originally turned to Clifford Chance partner Ian Roxborough to bring his claim of unfair predujuce against Apex, a fellow shareholder in telecoms company Fi Call (21 March 2013).

Clifford Chance was replaced by Irwin Mitchell partner Jeremy Marshall last year after losing an attempt to have the case heard in private. Marshall has now been replaced again by Mishcon de Reya partner Jarret Brown following a bruising result for the Prince in the Court of Appeal in July.

Apex has also switched counsel, from HowardKennedyFsi partners Steven Morris and Louise Bennett to Teacher Stern partner Jack Rabinowitz.

Serle Court’s Daniel Lightman was first instructed first by HowardKennedyFsi and now Rabinowitz. Blackstone Chambers’ Robert Howe QC and Maitland Chambers’ Matthew Collings QC were previously leading Lightman as well as Maitland Chambers’ Oliver Phillips.

4 New Square’s Justin Fenwick QC replaced Wilberforce Chambers’ John Wardell QC. Wardell is now instructed for the Prince along with 4 New Square’s Daniel Saoul.

The Prince has refused to sign a witness statement due to his royal status and failed to pay $7.7m to the other side, resulting in his defence being struck out last year. He and will fight the multiple orders on 13 October.

Lords Neuberger, Clarke and Sumption ruled the Prince could only bring the appeal on the condition he paid the $7.7m judgment sum plus interest into the court by 4pm next Monday. 

The fight started four years ago, launched by Prince Mishal bin Abdulaziz Al Saud, a former defence minister, brother of King Abdullah and chairman of the country’s influential allegiance council, and his son, Prince Abdulaziz bin Mishal bin Al Saud.

The princes invested in a new telecoms company, Fi Call, through their company Global Torch Limited, along with  Almhairat through his own company, Apex Global Management.  The Princes blamed Almhairat for the failure of the company, alleging that he had misappropriated fund, misconducted company business and had failed to keep proper books.

But the case soon became focused around the Prince’s battle to have the case heard behind closed doors and their efforts to use diplomatic immunity as a protection from UK court orders.

Last year the princes failed in their argument that hearing the case in public could damage relations between Britain and Saudi Arabia (20 February 2013). Clifford Chance partner Roxborough had argued that the defendants risked “death and reprisals” if the full detail of the case was heard in open court.

The princes lost the case at the High Court and Lord Justice Maurice Kay, Richards and Briggs unanimously dismissed the subsequent appeal in its entirety at the Court of Appeal in July, ruling open justice would not be served by a close hearing (10 July 2013).

Prince Abdulaziz then went on to argue that they could not comply with an order made by Vos J that he personally sign a witness statement about disclosure in the case.

The prince argued that as a member of the Royal family he was not able to sign the document. On 9 September 2013 Norris J made an unless order compelling him to sign the statement and ruling that he would be debarred if he did not.  The Prince was then hit with a $7.7m judgment by Norris J plus costs.

In November Mann J rule that the prince’s application to vary Vos J’s order could not be stayed and finally a Court of Appeal hearing two months ago ruled that the prince was not able to appeal against the series of orders. 

Mishcon de Reya and Teacher Stern have replaced Irwin Mitchell and HowardKennedyFsi to win lead roles on a Saudi prince’s long-running battle to have his dispute with a shareholder heard in private.

Still, Irwin Mitchell may have seen it coming, since it was itself parachuted in last year to replace Clifford Chance in advising HRH Prince Abdulaziz Bin Mishal bin Abdulaziz Al Saud on his long-running battle against Apex Global Management.

The prince originally turned to Clifford Chance partner Ian Roxborough to bring his claim, before replacing the firm with Irwin Mitchell partner Jeremy Marshall. Now Irwin Mitchell’s Marshall has in turn been replaced by Mishcon de Reya partner Jarret Brown.

The adviser merry-go-round doesn’t stop there. Apex has also decided to change its counsel, switching from HowardKennedyFsi partners Steven Morris and Louise Bennett to Teacher Stern partner Jack Rabinowitz.

The case against the Saudi Prince’s fellow investor Faisal Almhairat’s company has been running since 2011, with several bids to have the it heard in private dismissed by the courts.

Yesterday the prince was given leave to appeal a series of orders and take his fight, along with his new legal line up, to the Supreme Court.

Also on TheLawyer.com:

• American aerospace and defence technology company Northrop Grumman Corporation has appointed a new European head of legal
• Washington DC-headquartered BuckleySandler has opened its first international office in London
• Former Co-op Legal Services (CLS) policy director Christina Blacklaws joins Kent-based Cripps
• Aim-listed Murgitroyd sees pre-tax profits drop 10.9 per cent

Abdulaziz Al-Ajlan & Partners has appointed finance lawyer Julie Alexander to support and manage the development of the new office, the seventh for Baker & McKenzie in the region.

Riyadh banking and finance partner Basel Barakat will join Alexander in the Jeddah office. The firm has had a presence in Saudi Arabia since 1980 while Jeddah becomes the second Baker & McKenzie affiliate office there since the launch of the Riyadh office 15 years ago (3 January 1999).

Alexander said in a statement: “Jeddah is a key commercial centre in Saudi Arabia and we’ve been working with Jeddah-based banking and corporate clients for many years.”

Alexander added the new office would enhance Bakers’ service offering for high-end finance and corporate advice. 

Baker & McKenzie has 300 lawyers in the Middle East, spread out in its offices in Abu Dhabi, Bahrain, Cairo, Doha and Dubai, and associated office in Riyadh.

The $6bn (£3.7bn) flotation is the largest-ever listing in the Arab world, and potentially the second largest globally in 2014 following Alibaba’s $25bn IPO in September. It breaks the record of Dubai’s DP World IPO which raised $5bn in 2007. 

Established in 1953, NCB was the first Saudi Arabian bank, and is currently the largest bank in Saudi Arabia by assets. 

Latham’s Saudi association firm Law Office of Salman M. Al-Sudairi advised the issuer on the listing. The team was led by finance partner Harj Rai and corporate partner Andrew Tarbuck, with assistance from Riyadh managing partner Salman Al-Sudairi and London-based Craig Nethercott on finance aspects. Washington DC-based Scott Ballenger advised on litigation, while Sami Al-Louzi who works in Dubai and Riyadh assisted on corporate matters. 

Meanwhile, Baker’s association firm Abdulaziz I. Al-Ajlan & Partners advised the financial advisors and lead managers, GIB Capital and HSBC Saudi Arabia, on the IPO. Riyadh-based partner Karim Nassar led for the firm, with support from counsel Robert Eastwood. 

According to the prospectus, NCB is due to pay out $6.7m in total to all of its advisers. The sum is relatively small compared to the $261m in fees paid out to the underwriters on Alibaba’s record-breaking IPO last month. On that listing, the legal advisers took a share of $15.8m of the total sum (23 September 2014).