Professional Services in the Gulf: 2025 Law Firms

Since January 2025, more than 10 major international law firms have secured regulatory approval or launched operations in Saudi Arabia, while the UAE.

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Executive Summary

2025 has marked an inflection point for the Middle East’s legal services market, particularly in Saudi Arabia and the UAE, as international law firms rapidly seek regulatory approvals and establish local offices. This expansion is driven by robust economic reforms, unprecedented deal activity, and sweeping regulatory changes that have lowered barriers for foreign firm participation.

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Drivers Behind the Gulf Expansion

→ Regulatory Overhaul and Full Foreign Ownership

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Saudi Arabia’s 2023 amendments to the Code of Law Practice grant global law firms permission to open fully-owned offices—ending the reliance on local partnership structures. This reform, central to the Vision 2030 economic transformation programme, provides attractive incentives such as the ability to operate under global partnership models and eligibility for regional headquarters privileges, including tax exemptions and government contractual opportunities. Licence-holders must meet localisation requirements: a majority Saudi workforce, minimum two partners residing locally, limitations on work outsourcing, and periodic licence renewals. The UAE has similarly liberalised foreign ownership restrictions, especially in free zones like Abu Dhabi Global Market and DIFC, facilitating 100% foreign ownership and access to English-law courts.

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→ Unprecedented M&A and IPO Activity

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The Gulf region’s corporate landscape is now amongst the world’s busiest. In 2024, regional corporates and sovereign wealth funds announced transactions exceeding $150bn—driven by aggressive investment and privatisation strategies. MENA markets saw 54 IPOs raising $12.6bn and 214 M&A deals in the first half of 2024, with Saudi and UAE leading the volume and proceeds. IPO and deal activity demonstrates about 62% year-on-year growth, cementing the region as a leading hub for capital markets, corporate transactions, and legal advisory mandates.

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→ Mega Projects and Economic Diversification

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Saudi Arabia’s Vision 2030 and the UAE’s non-oil diversification agenda fuel demand for project and infrastructure finance, ESG work, and cross-border transactional advice. Giga projects such as NEOM, The Line, and Red Sea Global, alongside aggressive state-led investments in green energy and logistics infrastructure, require advanced legal expertise—from corporate structuring to capital markets and disputes resolution.

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→ Competitive Partner Billing and Talent Migration

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Market dynamics have enabled top international partners to bill rates nearing $1,000/hr. The ability to operate under LLP/partnership models and capture high-value mandates positions the Gulf as a lucrative destination for firm investment and partner relocations. Firms are actively signing office leases, relocating teams from London and New York, and making strategic local hires to comply with regulatory and market demands.

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The Saudi legal market – a new frontier‍

‍Until recently, foreign law firms could only operate in Saudi Arabia through associations with local firms. The 2023 regulatory changes granting full foreign-firm licences have completely transformed market access, allowing firms to open fully-owned offices and operate under their own global brands. This has triggered a first-mover race, with global firms seeking early positioning in Riyadh’s emerging corporate, capital markets, and disputes landscape.

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Key practice areas expected to see continue demand include:

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Corporate/M&A – driven by multi-billion-dollar state-led investments and private sector consolidation

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Capital Markets & IPOs – with the Tadawul exchange seeing increased listings and foreign participation

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Project & Infrastructure Finance – linked to mega-projects like NEOM, The Line, and Red Sea Global

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Energy Transition & ESG – including green hydrogen, renewables, and sustainable finance mandates

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Who’s applied or launched so far?‍

Since January 2025, more than 10 major international firms have secured licences or launched offices in Riyadh, Abu Dhabi, and Dubai, including leading members of the Am Law 50 and UK Magic/Silver Circle. Recent market entries and regulatory approvals include:

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In Saudi Arabia (KSA): BCLP (Riyadh & Al-Khobar), Bird & Bird, Simmons & Simmons, Pinsent Masons, King & Spalding (merger with Al Fahad & Partners), Omani & Partners, Reed Smith, Kirkland & Ellis, Baker McKenzie, Quinn Emanuel.

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In the UAE: Cohen & Gresser (Dubai), Skadden (Abu Dhabi), Addleshaw Goddard (Abu Dhabi), Paul Hastings (Abu Dhabi).

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Several of these firms have:

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→ Already signed lease agreements for Riyadh offices

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→ Begun partner relocations from London, New York, and Dubai

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→ Announced strategic hires from top Saudi law practices

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What’s Next?

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As Saudi Arabia’s Vision 2030 and the UAE’s diversification strategies accelerate, the Gulf is on track to become one of the most lucrative legal markets globally. For firms with strong corporate, capital markets, and project finance capabilities, the window for early market entry is now - before client relationships and mandates become locked up by competitors.