Foreign law firms get green light to legally operate in KSA: Addleshaw Goddard

Homam bin Sameer Khoshaim, founding partner of global law firm Addleshaw Goddard’s office in Saudi Arabia

Homam bin Sameer Khoshaim, founding partner of global law firm Addleshaw Goddard’s office in Saudi Arabia, said that foreign law firms can now enter the Saudi market legally following the recent amendments to the lawyering law that regulate the licensing of foreign law firms to practice the legal profession in the Kingdom.

In statements to Argaam, Khoshaim added that the new Companies Law has enhanced transparency and the entry of foreign companies into the Saudi market, especially after clarifying and detailing some articles.

He also indicated that foreign companies pay 20% tax on profit, while Saudi partners pay 2.5% Zakat.

Over the past two years, there has been a significant movement in mergers and acquisitions (M&A) activity, said Khoshaim, expecting the continuation of M&A deals, especially with the Public Investment Fund’s strategy of investing in many companies locally and abroad.

This will contribute to attracting external expertise into the Kingdom, which will strengthen the domestic economy, in line with Saudi Vision 2030, he added.

The official also pointed out that, regarding initial public offerings (IPOs), the market is resilient and has strong liquidity, indicating that there will be a continuation of IPO activity in the market in a number of sectors.

As for approving the class action filed by an investor against some board members and employees of Al Mojil Group, Khoshaim considered that this case is an important precedent for the financial market, stressing that lawyers are studying the case to protect clients and for the purpose of boosting corporate governance.

He pointed out that the role of lawyers is to set clear governance for each company to follow in incorporation, restructuring, as well as in selling and buying assets.

Addleshaw Goddard announced on Jan. 17 the launch of its new office in Riyadh, which consists of 14 individuals, to provide its expertise in corporate M&A, banking and financial services, and infrastructure, in addition to energy, oil and gas, renewable energy, transportation, technology, hospitality, manufacturing, and consumer goods, in line with Saudi Vision 2030.

The office has achieved remarkable growth in the Middle East region in the past decade, as its revenue growth has doubled during that period.

The opening of the Riyadh office represents an additional essential step to achieving a 40% growth in income over the next five years, which maintains the upward path taken by the office in the region, which currently includes 24 partner lawyers and 60 other lawyers residing in the region.

According to data available to Argaam, global law firm Addelshaw Goddard obtained a license to practice the legal profession as a foreign law firm from the Saudi Ministry of Justice after announcing in 2023 its intention to open an office in Riyadh. This is the law firm's fourth office in the Middle East region, in addition to its offices in the UAE, Qatar, and Oman.