Gericó Associates interviewed Ollie Dimsdale, Director of AMECO at Chambers and Partners, to discuss key trends in the Middle East legal market. The conversation covered the growing presence of US law firms in the region, the sophistication of local markets, and the importance of specialization in areas such as project finance and employment law. The full interview below.

1. From your vantage point at Chambers, what are the most notable trends currently shaping the legal market in the Middle East?

In the past eighteen months we have seen several major US law firms – including Skadden, Paul Hastings and Kirkland & Ellis – open their first Middle Eastern offices. This reflects the fact that deal activity in Saudi Arabia and the UAE has remained at record levels, at the precise time that much of the rest of the world has experienced a deal downturn. Many of the new office openings have been in Riyadh and Abu Dhabi, suggesting that Dubai is no longer the be-all and end-all when it comes to Middle Eastern work. 

Across the region, markets are becoming increasingly sophisticated and highly regulated. This is especially notable in the financial services sector, but areas such as competition law have also come on in leaps and bounds in recent years.

2. Are there particular jurisdictions in the region that you feel are gaining prominence or evolving faster than others? If so, why?

Saudi Arabia continues to evolve at a remarkable pace and is already largely unrecognisable compared to how things were a decade ago. Driving the current changes is the government’s understanding that the Kingdom’s hydrocarbon resources, although immense, are ultimately finite, and major investment in other sectors, such as renewable energy and hospitality, is required in order to secure the country’s future. Investment in these sectors has also necessitated major developments in the Kingdom’s legislative infrastructure, notably the development of competition law and business insolvency regimes. 

At the same time, of course, the UAE is determined not to be left behind, pushing with numerous regulatory developments of its own, such as the formation of the Virtual Assets Regulatory Authority (VARA). As with Saudi, diversification of the economy has been a concern here too, with the additional pressures resulting from a rapidly expanding expat population. 

3. What distinguishes top-ranked law firms in the Middle East region from the rest?

The Band 1 law firms in each ranking table will be those which consistently demonstrate a wide-ranging portfolio of work, spanning the full gamut of issues within that practice area. These firms will be particularly active (and in lead roles) on cutting-edge work that breaks new ground, involves novel legal issues or is simply unusually high-value in nature. 

Involvement in top-end work won’t be enough on its own to secure a Band 1 ranking. In addition, multiple client referees will have praised these teams, over multiple years, and in the highest terms when compared with other ranked firms in the practice area. Strengths our researchers are looking out for include outstanding technical skills, top-notch commercial understanding and exemplary relationship management.

4. Based on client feedback and your market research, what are the key differences in how established international firms and emerging local players are perceived in the Middle East? (Are there distinct strengths or challenges that set them apart in the eyes of clients?)

It’s important to remember that the Middle East is not one single market, but several. Any answer to this question depends on which market we are talking about. Outside of the UAE and Saudi, there is often a feeling from well-established local law firms that international law firms will enter a market in order to use that branch as a ‘back office’ where they can service UAE or Saudi work at a much cheaper rate. We see from submissions that this isn’t necessarily always true . . .

In the UAE and Saudi a very different dynamic exists. These are fast-changing markets, and international law firms such as Clifford Chance have been present since well before either country had the global importance they have today. Traditionally people would have told you that the international firms (or those domestic firms affiliated with big global law firms) had a monopoly on sophisticated, high-end work. This may well have been true in the past.

5. Have you noticed any changes in the type of work or sectors that Chambers is receiving submissions for in the Middle East?

For years the Saudi market has been dominated by generalists with a valid claim for rankings in multiple tables. Increasingly, you are seeing a move towards specialisation, in areas such as project finance, restructuring and construction arbitration. We have already created new ranking tables to reflect some of the new areas of work lawyers are handling. This includes rankings for Employment, TMT and Public Policy & Regulatory Affairs. As of this year, we are also looking to divide our Dispute Resolution rankings into Arbitration and Litigation.

More broadly, media and entertainment matters historically made up a very small percentage of submitted work highlights for the Middle East. This has changed dramatically, so much so that we created a new UAE ranking table specifically focusing on such matters (and distinct from our IT, Telecoms & Data rankings).

The UAE has become quite a sophisticated jurisdiction from a regulatory standpoint. We noticed financial regulatory matters taking up an increasing amount of room on law firm submissions, and responded to this by introducing another new section, this time for financial services regulation. 

6. What are some common pitfalls you see firms in the region make when submitting for rankings?

It’s worth mentioning that firms are permitted to send in up to 20 referees for each section they wished to be ranked in. (This number has been increased to 30 for UAE sections.) Firms should definitely make full use their allowance – we see so many firms who might otherwise have a good chance of getting ranked, but who fail because they have only provided two or three referees. It should go without saying, but do also remember to seek your referees’ consent before sending their contact details to us, remembering that some individuals may not wish to participate, or work at organisations with policies prohibiting involvement in third-party surveys. Referees do not always have to be the end-user client; arbitrators, regulators or overseas counsel are all perfectly valid as well. 

When it comes to submissions, make sure the work you are sending us meets the criteria for ranking. We have compiled a special page of guidance for some of the more nuanced sections in our AMECO coverage, available here. 

Following Russia’s invasion of Ukraine in 2023, we took a company-wide decision that we will be disregarding any work highlights where a law firm is acting for a Russian client. Do not send us any of this work as it will not count towards a ranking.

7. What advice would you give to firms in the Middle East who want to better position their firms for recognition and growth?

Something that is perhaps not immediately obvious is that we are not simply looking at the results of a single year’s research when we make our ranking decisions. We are in fact reviewing the results of (at least) the last three research cycles, and looking for a consistent message. Any law firm looking to enter the rankings should be prepared to be patient, and understand if you are not successful in doing so the first year you apply this certainly does not mean we are not getting the message. The rigour and care with which we assemble our rankings is something we take great pride in, and the reason why Chambers continues to be the ranking that matters most. 

8. Finally, can you give us a behind-the-scenes look at the research process for the Middle East region? (Mainly, how is the research team structured, and how do you decide whether to expand coverage in certain jurisdictions or introduce new practice areas? Are there any anticipated changes in the upcoming rankings cycle?)

Research for each ranking table will be assigned to a single researcher. These allocations will be determined based on experience level and personal interest, so that our most experienced researchers will be the ones taking on the most complex and challenging sections. On a day-to-day basis, research for the UAE and most other Middle Eastern countries is overseen by our Middle East principal research specialist, Raffaella Di Somma. Raffaella also handles her own research, with a particular focus on UAE Corporate/M&A. 

My own role involves strategic oversight of Middle East research, alongside similar responsibilities for Africa and the Caribbean. In addition, I retain direct responsibility for Saudi Arabia and Egypt research, working closely with the researchers assigned to these jurisdictions.