Establishment of foreign law firms in Saudi Arabia

Saudi Arabia recently opened its doors for foreign law firms to establish their presence in the country.

The move aims to provide more efficient services to individuals and institutions, improve the business and investment environment in the Kingdom, and develop and enhance the skills of legal practitioners.

However, there are multiple requirements to set up a licensed foreign law company in the Kingdom.

Regulations stipulate that companies must obtain an investment license, register any non-Saudi lawyers (who should have at least five years’ experience) with the Saudi Bar Association, pay the necessary license fees, and declare an office address. License periods last for five years and are renewable.

With regard to partnerships, two partners from any foreign law firm must reside in Saudi Arabia for at least 180 days a year. The partner representing the office in the Kingdom should have at least 10 years’ experience in the legal field, at least three of which should have been spent after obtaining a license to practice.

Under the rules, a foreign law firm is required to have its headquarters or main office in an economically advanced country, and no more than 30 percent of its legal consultations should be referred to an office outside of the Kingdom.

Foreign law firm terminations can be done via an app, at the expiry of the license, after six months have passed without the company taking the required form of office, if the practice has not been operating for one year, or if a decision or ruling is made to revoke its license.

Also, the number of Saudis practicing legal work at any foreign law office must not be less than the Saudization percentage set for such businesses and professional companies.

• Dimah Talal Alsharif is a Saudi legal consultant, head of the health law department at the law firm of Majed Garoub and a member of the International Association of Lawyers. Twitter: @dimah_alsharif