The Riyadh Rush: Why Global Law Firms are Moving to Saudi Arabia

Authors: Amita Abubakar and Olivia Inniss

Since 2023, dozens of the world's biggest law firms have opened offices in Saudi Arabia. To name a few, Kirkland & Ellis, Latham & Watkins, White & Case and Freshfields all set up in a city that, just a few years earlier, was largely absent from the global legal landscape. The move to Saudi Arabia has been initiated for two main reasons. First, the country rewrote its rules so foreign firms could operate independently and second, the government launched an economic overhaul which has created a wave of new investment.

Why Vision 2030 Exists

Saudi Arabia makes most of its money from oil. When prices drop, government revenue drops with it. Vision 2030, launched in April 2016 by Crown Prince Mohammed bin Salman, plans to change that by building up tourism, technology, entertainment, financial services and renewable energy. The government's own 2025 annual report claims 93% of the program's key performance indicators met or exceeded targets, though there is no independent examination of that figure.

What Changed in 2023?

Until 2023, a foreign law firm in Saudi Arabia had to work through a local partner, under someone else’s name and license with limited control. Reforms to the Code of Law Practice have allowed international firms to now hold their own licenses. The only limitations being that at least half the lawyers must be Saudi nationals, two partners must live in the Kingdom and 70% of fee income must stay there.

In March 2023, Latham & Watkins, Herbert Smith Freehills and Clifford Chance became the first to receive licenses. By October, the Ministry of Justice had licensed 15 firms and was reviewing another 15. Other firms followed with Kirkland opening in October 2023, White & Case arriving in December, King & Spalding merging with Saudi firm Al Fahad & Partners, Bird & Bird opening a tech-focused office and Freshfields setting up a standalone practice.

A second reform broadened the opportunity beyond law firms. The 2024 Investment Law, in force from February 2025, scrapped the old foreign-investment license and replaced it with a simple registration through the Ministry of Investment. 

Since January 2024, any multinational wanting Saudi government contracts has needed a regional headquarters in the Kingdom, incentivised by a 30-year corporate tax exemption. By the end of 2025, over 700 companies had registered one, including Amazon, Google and many others, smashing the original target of 480 by 2030. These rule changes highlight that what used to be run out of Dubai or London can now be increasingly done from offices in Saudi Arabia.

Where the Work Is

M&A: 

The biggest fee-earner is mergers and acquisitions. In 2025, Saudi Arabia's competition regulator reviewed a record 406 deal applications and cleared 271 of them, a 34% jump on the previous year, with a combined value of roughly SAR 1.97 trillion (about $525 billion). Every one of those deals needs lawyers for due diligence, structuring, regulatory filings and integration afterward.

Fintech: 

Financial technology has also seen a huge expansion. The Kingdom went from 82 licensed fintech firms to 301 by the end of 2025 and 85% of retail transactions are now digital. Every new category of financial business such as open banking and digital lending, requires a regulatory framework.

Project Finance: 

This is a way of funding large projects where the loan is repaid from the money that the project itself is expected to generate. Solar farms, wind farms and mega-developments all rely on it and the contracts need to be airtight because lenders usually cannot chase the parent company if the project fails.

The Setbacks

While the project seems to be going from strength to strength, it has faced its fair share of obstacles. Oil prices have fallen and the government is running a deficit, as shown by the $8 billion written off by the Public Investment Fund for its flagship giga-projects in August 2025. Furthermore, NEOM's The Line has been scaled back sharply and construction on phase two of the Red Sea tourism project is set to pause at the end of 2026. Money is shifting towards commitments the Kingdom cannot refuse such as the 2034 World Cup, Expo 2030 and data centres. Despite the project not panning out as initially intended, these changes in the region will generate work of their own for law firms to engage with. For example, the Saudi Center for Commercial Arbitration saw its caseload grow 52% in 2025, reaching 182 cases, which gives international businesses a familiar dispute-resolution option.

What Does This Mean for Applications?

Saudi Arabia is one of the few genuinely new markets in commercial law. If you are a law student, it is excellent material for applications and interviews, especially if you can discuss what has slowed down alongside what is growing. The events which led to the initial rush to the Middle East showcase the efficient, forward-thinking nature of law firms. Firstly, a licensing rule changed, firms swiftly opened offices and work quickly followed. Demonstrating this understanding in an interview setting shows you can trace a policy change to the work that will actually face a law firm, which is what commercial awareness actually means. 

References

Legislation and Government Sources

Code of Law Practice (Saudi Arabia, as amended 2023).

Investment Law 2024 (Royal Decree No M/19, 22 July 2024, in force 12 February 2025).

Implementing Regulations of the Investment Law (Ministerial Decision 1086, 7 February 2025).

Regulations of Government Agencies Contracting with Entities that do not have a Regional Headquarter in Saudi Arabia (Cabinet Resolution No 366, 27 December 2022, in force 1 January 2024).

Reports and Institutional Publications

Vision 2030, Vision 2030 Annual Report 2025: Executive Summary (Vision 2030 2026) https://www.vision2030.gov.sa/media/vcjnuhsn/vision2030_annual_report_2025-executive_summary_en.pdf.

Financial Sector Development Program, 2025 Annual Report (FSDP 2026) https://www.vision2030.gov.sa/media/zjhatyib/annual-report-fsdp-2025-en.pdf.

Saudi Center for Commercial Arbitration, SCCA Annual Report 2025 (SCCA 2026) https://sadr.org/public/upload/media-center/bulletin/6a3cff94a9e0c-SCCA Annual Report 2025.pdf.

Baker McKenzie, 'Saudi Arabia: Merger Control Activity in 2025' (Baker McKenzie Insight, January 2026) https://www.bakermckenzie.com/en/insight/publications/2026/01/saudi-arabia-merger-control-activity-in-2025.

PwC, 'Saudi Arabia: Regional Headquarters Program and Transfer Pricing' (PwC Tax Alert, 30 January 2024) https://www.pwc.com/m1/en/services/tax/middle-east-tax-news-alerts/2024/saudi-arabia-regional-headquarters-program-and-transfer-pricing.html.

News and Press Releases

Saudi Press Agency, '15 Foreign Law Firms Licensed to Practice in the Kingdom' (SPA, 30 October 2023) https://spa.gov.sa/en/N1988815.

Saudi Press Agency, 'SAMA: "STC Bank" Launches its Banking Operations in the Kingdom' (SPA, 28 January 2025) https://www.spa.gov.sa/en/N2251726.

Saudi Press Agency, 'SAMA Announces Licensing of New Digital Bank' (SPA, 1 October 2025) https://www.spa.gov.sa/en/N2411560.

Arab News, 'Saudi Justice Ministry Grants Licenses to 15 International Law Firms' (Arab News, 30 October 2023) https://www.arabnews.com/saudi-arabia/saudi-justice-ministry-grants-licenses-to-15-international-law-firms-2400231.

Arab News, 'Saudi Arabia's Vision 2030 Transformation 85% Complete, Says Al-Falih' (Arab News, 26 October 2025) https://www.arabnews.com/node/2620298/business-economy.

Saudi Gazette, 'Saudi Vision 2030 Enters Final Phase as 93% of KPIs Meet 2025 Targets' (Saudi Gazette, 26 April 2026) https://saudigazette.com.sa/article/660839.

Reuters, 'Saudi Gigaprojects Take $8 Billion Hit in Reality Check for Diversification Efforts' (Reuters, 14 August 2025) https://www.reuters.com/world/middle-east/saudi-gigaprojects-take-8-billion-hit-reality-check-diversification-efforts-2025-08-14.

CNBC, 'Saudi Arabia PIF Fund Sees $8 Billion Writedown in Megaprojects' (CNBC, 14 August 2025) https://www.cnbc.com/2025/08/14/saudi-arabia-pif-fund-sees-8-billion-writedown-in-megaprojects.html.

Agence France-Presse, 'Saudi Arabia Scales Back Massive Red Sea Project in Cost-Cutting Push' (Türkiye Today, 13 February 2026) https://www.turkiyetoday.com/region/saudi-arabia-scales-back-massive-red-sea-project-in-cost-cutting-push-3214483.

The Guardian, 'End of the Line? Saudi Arabia "Forced to Scale Back" Plans for Desert Megacity' (The Guardian, 10 April 2024) https://www.theguardian.com/world/2024/apr/10/the-line-saudi-arabia-scaling-back-plans-105-mile-long-desert-megacity-crown-prince.

AGBI, 'PIF Scales Back Giga-Project Spending Despite Assets Surge' (Arabian Gulf Business Insight, 14 August 2025) https://www.agbi.com/giga-projects/2025/08/pif-scales-back-giga‑project-spending-despite-assets-surge/.

Law Firm Announcements

Kirkland & Ellis, 'Kirkland & Ellis Expands Global Footprint with New Office in Riyadh' (Kirkland & Ellis Press Release, 30 October 2023) https://www.kirkland.com/news/press-release/2023/10/kirkland-ellis-to-expand-global-footprint-with-new-office-in-riyadh.

Latham & Watkins, 'Latham Granted a Foreign Law License by the Saudi Ministry of Justice' (Latham & Watkins Press Release, 6 March 2023) https://www.lw.com/en/news/2023/03/latham-granted-a-foreign-law-license-by-the-saudi-ministry-of-justice.

White & Case, 'White & Case Establishes Direct Presence in Kingdom of Saudi Arabia' (White & Case Press Release, 11 December 2023) https://www.whitecase.com/news/press-release/white-case-establishes-direct-presence-kingdom-saudi-arabia.

King & Spalding, 'Leading Saudi Arabian Firm Abdulaziz H. Al Fahad & Partners Lawyers Joins King & Spalding in Riyadh' (King & Spalding Press Release, 21 January 2025) https://www.kslaw.com/about/news/leading-saudi-arabian-firm-abdulaziz-h-al-fahad-partners-lawyers-joins-king-spalding-in-riyadh.

Bird & Bird, 'Bird & Bird Opening Office in Riyadh, Saudi Arabia' (Bird & Bird News, 20 May 2025) https://www.twobirds.com/en/news-and-deals/2025/saudi-arabia/bird-and-bird-opening-office-in-riyadh-saudi-arabia.

Stephenson Harwood, 'Stephenson Harwood Set to Open Doors in Saudi Arabia' (Stephenson Harwood News, 27 October 2025) https://www.stephensonharwood.com/news/stephenson-harwood-set-to-open-doors-in-saudi-arabia.

Freshfields, 'Freshfields and LFSH Enter Strategic Alliance to Serve Clients in Saudi Arabia' (Freshfields News, 5 August 2025) https://www.freshfields.com/en/our-thinking/news/news-search/2025/08/freshfields-and-lfsh-enter-strategic-alliance-to-serve-clients-in-saudi-arabia.

Legal Commentary

Neil Hodge, 'International Firms Rush for Local Licences as Saudi Arabia Amends Code of Law Practice' (International Bar Association, 23 January 2024) https://www.ibanet.org/International-firms-rush-for-local-licences-as-Saudi-Arabia-amends-Code-of-Law-Practice.

Clyde & Co, 'Saudi Arabia's Recently Issued Implementing Regulations of the Investment Law' (Clyde & Co Insight, 17 September 2025) https://www.clydeco.com/en/insights/2025/09/ksa-investment-law-implementing-regulations.

HFW, 'Saudi Arabia: Major Changes to Foreign Investment Regime with New Investment Law' (HFW Briefing, August 2024) https://www.hfw.com/app/uploads/2024/08/Saudi-Arabia-Major-changes-to-foreign-investment-regime-with-new-investment-law.pdf.

DWF, 'Saudi Arabia's Vision 2030: What the New Foreign Investment Law Means for Investors' (DWF Insight, 13 February 2025) https://dwfgroup.com/en/news-and-insights/insights/2025/2/the-kingdom-of-saudi-arabias-new-investment-law.

King & Spalding, 'ZATCA Clarifies the Requirements for Granting a 30-Year Tax Relief to Multinational Corporations under the Regional Headquarters Program' (JD Supra, 2024) https://www.jdsupra.com/legalnews/zatca-clarifies-the-requirements-for-3879450.

The Law Society, 'Changes to Practising Law in Saudi Arabia' (The Law Society, 12 August 2022) https://www.lawsociety.org.uk/topics/international/changes-to-practising-law-in-saudi-arabia.