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The introduction of legal reforms such as the Freehold Law promises continued growth, further establishing KSA as a key legal centre in the region. Image: Shutterstock

Saudi Arabia’s legal community is abuzz with speculation almost two weeks after reports emerged on the kingdom mulling a move to potentially allow foreign-owned law firms to establish wholly-owned subsidiaries, experts told Arabian Business.

This move could reshape the Saudi legal market and attract more international players to the region’s largest economy, potentially transforming the landscape of legal services in the Gulf’s most populous nation.

The Proposed Amendment to the Code of Law Practice

The proposed amendment to the Code of Law Practice, which could remove the requirement for foreign firms to partner with Saudi lawyers, has sparked intense debate among legal professionals. As the public consultation period continues, industry insiders are weighing the pros and cons of what could be a transformative change for the Saudi legal landscape.

A Divided Legal Sector

The Ministry of Justice’s public consultation is still ongoing, with the legal community closely watching for developments. If approved, this change could mark a significant shift in how international law firms operate in the Saudi market.

Legal experts have offered varied perspectives on the potential impact of the proposed changes. “The Saudi legal market is expansive, offering numerous opportunities for foreign law firms to leverage their expertise,” said Jean Abboud, Partner and Head of Saudi Office at BSA.

A Potential Game-Changer for the Region

The proposed changes come at a time when Saudi Arabia is experiencing rapid economic growth and diversification, creating increased demand for sophisticated legal services across various sectors.

“The additional players to the KSA market will also bring with them specialised expertise and international experience that can further elevate the legal sector,” said Homam Khoshaim, Partner at Addleshaw Goddard in Saudi Arabia.

A Regional Hub in the Making

The proposed changes could further solidify Saudi Arabia’s position as a regional legal hub. “A number of international law firms have already formed their regional headquarters in the Kingdom, pursuant to the Ministry of Investment’s RHQ programme,” said Siddiki.

Saudi Arabia’s initiatives to modernise its legal sector and judicial systems reflect a strategic commitment to transparency, efficiency, and global integration. Through Vision 2030 and the opening of its legal market to foreign expertise, the Kingdom is setting a regional benchmark for legal reform.

The coming weeks will be crucial as the Ministry of Justice reviews feedback and decides on the path forward. Regardless of the outcome, it’s clear that Saudi Arabia’s legal sector is on the cusp of potentially significant change, with implications that could resonate throughout the region and beyond.