In a notable development within the legal sector, DWF has become the first Global 200 law firm to close its Riyadh office following Saudi Arabia’s relaxation of foreign ownership regulations. This move comes after the Kingdom’s 2023 amendments to the Code of Law Practice, which allowed foreign law firms to establish offices independently or through partnerships with local entities.
Historically, foreign law firms operating in Saudi Arabia were required to associate with local firms. However, the 2023 reforms permitted these firms to either set up wholly owned branches or form joint ventures with Saudi lawyers, provided the local partners held at least 25% ownership. Additionally, the regulations mandated that two partners from the foreign firm reside in the Kingdom for a minimum of 180 days annually, and that at least 50% of the firm’s local workforce be Saudi nationals. Furthermore, any work related to Saudi law was required to be conducted entirely within the local branch, without outsourcing to foreign offices. ([ibanet.org](https://www.ibanet.org/International-firms-rush-for-local-licences-as-Saudi-Arabia-amends-Code-of-Law-Practice?utm_source=openai))
In October 2021, DWF had announced Riyadh as its regional headquarters, aiming to provide integrated legal and business services across the Gulf region. The firm established an association with local law firm Al-Ohaly & Partners to offer legal advisory services within the Kingdom. ([dwfgroup.com](https://dwfgroup.com/ar-qa/news-and-insights/press-releases/2021/10/dwf-announces-riyadh-as-its-regional-headquarters?utm_source=openai))
The closure of DWF’s Riyadh office raises questions about the firm’s strategic direction in the Middle East and the broader implications of Saudi Arabia’s regulatory changes on international law firms. While some firms have pursued licenses to operate under the new framework, others may find the requirements challenging, leading to reevaluations of their presence in the Kingdom.
As the legal landscape in Saudi Arabia continues to evolve, international firms must carefully assess the benefits and obligations associated with establishing or maintaining operations within the country. The balance between accessing the Kingdom’s growing market and adhering to its regulatory environment will be crucial for firms aiming to navigate this dynamic sector.