The Saudi Legal Boom: Why International Law Firms Are Rushing to Riyadh

Insights Digest
Mar 23
3 min read

Annika Park. 23 March 2025.

Introduction

The Saudi Arabian legal market is one of the fastest-growing in the Middle East, and many international firms are hustling to expand into it quickly. Since the changes to Saudi Arabian law two years ago, at least 20 UK and US law firms have obtained licences, with many looking to follow. The firms that have already made the move include Kirkland & Ellis, Linklaters, White & Case, Clifford Chance, and many more. But this begs the question: what is drawing these massive international firms to the Middle East?

What are the Influential Factors?

The main factor for this geographical shift is the change in Saudi Arabia’s laws. The country has changed its legislation to attract more international law firms as part of its economic transformation goals, aiming to increase its economic activity and become a global business hub. For context, Saudi Arabia’s ‘Vision 2030’ aims to diversify its economy away from oil and attract foreign investment across various industries. As part of Vision 2030, Saudi Arabia wants to bring more elite law firms to the country, thus it reformed its Code of Law Practice making it easier for foreign firms to operate. Moreover, Saudi Arabia is also encouraging international firms to set up their regional headquarters in the country, making it the main branch in the Middle East, by offering tax incentives and additional perks.

For firms to obtain a licence, they must meet strict conditions. Firstly, at least 70% of lawyers in the Saudi office must be Saudi nationals, with at least two partners living in Saudi Arabia for at least 180 days a year. Secondly, Saudi legal work cannot be outsourced to the firm’s foreign offices, and only 30% of advisory work can be handled outside of the country. Lastly, these licences must be renewed every five years, which allows the government to ensure that law firms meet these requirements.

What Makes Riyadh so attractive?

The main attraction for law firms is money. Saudi Arabia is known for its incredible wealth, which has been pouring trillions into improving and expanding its economy, creating a significant demand for legal expertise. For example, the $3 trillion in sovereign wealth investment funds used in their global deals means that there is a need for expert legal advice. This aligns with Saudi Arabia’s ‘Vision 2030’ plan, which is set to drive significant investment in infrastructure, technology, and other industries.

Another new piece of legislation, the New Investment Law, attracts foreign businesses and allows for easier operations in Saudi Arabia. This is a significant factor for law firms as the $7 trillion that is expected to be invested in the next five years, as well as the incentives given to international companies to make the move, will lead to lots of economic activity.

Lastly, in terms of deal activity, there have been countless recent IPOs in the Saudi Arabian market. For example, in 2019, Saudi Aramco went public on the exchange, raising over $29 billion. These kinds of deals create high-value work for corporate lawyers and international law firms, adding further motivation for big firms to make the move.

Are there any downsides?

Whilst all the economic factors make Saudi Arabia seem like a no-brainer choice for law firms, there are significant risks involved in setting up an office in the Middle East.

Mainly, many lawyers disapprove of the move to Saudi Arabia due to ethical concerns, such as the country’s position on LGBTQ+ and women’s rights. Nowadays, DEI is ever more critical for law firms as their culture and values are crucial to the smooth operation of their firms. Opening an office in Saudi Arabia may draw unwanted criticism from employees and clients, hurting the firm’s image.

Last year, Simmons & Simmons faced significant backlash after opening an office in Riyadh, the capital of Saudi Arabia. The lawyers at the firm questioned whether it was ethically correct to reap the rewards of operating in a country where homosexuality is criminalised and punishable by death. Ultimately, a firm like Simmons & Simmons, which has been repeatedly ranked as a top employer by the LGBTQIA+ charity Stonewall, is bound to face criticism for prioritising growth and success over protecting its core values and internal culture.

As Saudi Arabia continues to work towards its aim to become a global business hub, the legal industry must grapple with whether the financial opportunity it offers outweighs the blaring ethical concerns—a debate that is far from over.