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    Categories: Biglaw

Revolutionary Changes Ahead for Saudi Presence: Global Law Firms Prepare for New Rules

SAUDI ARABIA

Two major global law firms have announced new plans to establish or deepen their presence in Saudi Arabia, following changes in the oil-rich kingdom’s rules governing international legal practices. Squire Patton Boggs announced on Monday that it is terminating its association with a local Riyadh law firm to open its own office and hire attorneys within the region. Meanwhile, Greenberg Traurig has announced an affiliation with the Khalid Al-Thebity Law Firm and is entering the Saudi legal market for the first time.

Greenberg Traurig, founded in Miami and did not previously have a presence in Saudi Arabia, stated that it intends to register with its Saudi partner as a joint venture within the kingdom to comply with new law firm rules. Last year, the Saudi Arabian government announced plans to allow law firms to operate independently within the country, removing the previous requirement that they work through affiliated Saudi law offices. These associations will no longer be allowed once the new rules come into effect later this year.

Squire Patton Boggs announced that it had given notice that it planned to terminate its affiliation with Khalid Al-Thebity Law Firm in November 2022. This is part of an effort to “position itself for maximum growth in Saudi Arabia over the coming years under the new legal, regulatory structure there,” according to the firm’s chair and global CEO, Mark Ruehlmann. He stated that Squire Patton Boggs is committed to being in the kingdom and becoming “the ‘go-to’ firm in Saudi Arabia for years to come.”

Greenberg Traurig’s executive chairman, Richard Rosenbaum, said in a statement that the new Saudi guidelines allow global law firms to have a “genuine presence” within the country. He said the partnership with the Khalid law firm and its existing regional contacts “will allow us to make a material impact from day one.”

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Earlier this month, three other global law firms, Latham & Watkins, Clifford Chance, and Herbert Smith Freehills, announced they were among the first to obtain a license from the Saudi Ministry of Justice to practice independently within the country.

However, Saudi work was a divisive issue for some law firms with a US presence, with some cutting ties with the kingdom after the killing of Washington Post columnist Jamal Khashoggi in 2018. That year, a CIA assessment found Saudi Arabia responsible for Khashoggi’s killing. Squire Patton Boggs did not comment on Saudi Arabia’s human rights record, and Greenberg Traurig did not respond to a request for comment.

These moves by international law firms are set to help reshape the legal market in Saudi Arabia, with the country’s government hoping to attract more international investment and support for its Vision 2030 plan, which aims to reduce the country’s reliance on oil and diversify its economy. The opening up of the legal sector is part of a broader effort to modernize and liberalize the country, with other reforms including the relaxation of social restrictions and the promotion of tourism.

Rachel E: