The Saudi Big Law Gold Rush

Tom Borman, LawFuel contributing editor

Big Law firms are continuing to move into the increasingly crowded Saudi legal market scrambling for a piece of the action.

In the last two years, nearly four dozen global law firms have either set up shop or beefed up their presence in Saudi Arabia, lured by the siren song of Vision 2030 and a $700 billion sovereign wealth fund that’s basically the region’s ATM for mega-projects and M&A.

Why the sudden rush? Thank a 2023 rule change that finally let foreign firms operate independently, instead of having to play nice with local affiliates. Now, everyone from Kirkland & Ellis to Gibson Dunn and Pinsent Masons is opening Riyadh outposts, hoping to snag mandates from heavyweights like Aramco, the PIF, and government ministries.

The catch: you need a majority of local lawyers and a real, boots-on-the-ground presence, not just a brass plaque and a WhatsApp group.

But just as the Biglaw parade was hitting its stride, the music started to slow. Slumping oil prices are threatening to put a damper on deal flow, with the Saudi government’s deficit projected to hit $67 billion this year.

Crown Prince MBS is already dialing back his grand economic reinvention plans, which means less consulting work and fewer fat government contracts up for grabs.

But the deals haven’t dried up yet. M&A activity across the Middle East hit $69.5 billion in Q1, the highest since 2021, with Freshfields leading the league tables thanks to monster deals like Alphabet’s $32 billion buy of Israeli cybersecurity firm Wiz. Fenwick & West also got a taste, advising on Wiz and Niantic’s $3.5 billion sale to a Saudi PIF-backed buyer.

Meanwhile, firms like King & Spalding are doubling down, merging with local outfits to meet the new regulatory requirements and lock in a Saudi-majority roster.

Dubai remains the region’s capital of dealmaking, but everyone wants a Riyadh address these days—if only to keep up with the Joneses at Latham, White & Case, and Paul Hastings, who are all expanding in the Gulf neighborhood.

While the Saudi legal market is the new Biglaw gold rush, but it’s getting crowded, and the easy money may already be spent.

Firms are hustling for capital markets work (think IPOs for Flynas and Ejada Systems), private equity, and inbound/outbound investments. But with the government tightening its belt, expect more competition, thinner margins, and a lot of firms wondering if they showed up just as the buffet was being cleared.

So, for those watching from the LawFuel bleachers: Saudi Arabia is still the hottest ticket in town, but you might want to bring a fan—and maybe a Plan B.