Commercial legal services set for rapid growth

The commercial legal services sector in the Middle East is poised to grow at a rapid pace on the back of a renewed economic activity, changes in the regulatory landscape and the rising interest among global companies to set up or expand their business in the region, according to Bin Shabib & Associates (BSA). 

The leading Dubai-based law firm is expanding its presence in the region to cater to the rise in demand for its services.

“Following the onset of the global economic crisis in 2008, there was a sudden increase of litigation in the region due to the rise in commercial disputes,” said Michael Kortbawi- Partner at BSA LLP. “However, since mid-2010, the market is seeing a renewed appetite for mainstream corporate legal services driven by renewed investment and M&A activity, new business ventures, and the growing interest among global corporations to enter the Middle East market,” he added.

One of the vital drivers of growth in demand for legal services is the increased adoption of corporate governance and the move by regional corporations to conform to global regulatory standards.

“Following the economic crisis, regulators and companies have reassessed whether their regulatory and corporate governance frameworks are adequate to deal with risks that the global economic crisis has thrown the spotlight on. As a result of this, across the region, we have seen regulatory reform in sectors that for long have been under-regulated. In addition to this, the rising pace of globalisation and the increasing cross-border nature of business have compelled regional corporations to take steps to meet global regulatory standards and adopt better internal controls. Another key development is the move by regional family offices to restructure their operations and raise transparency levels to prepare themselves for IPOs or international acquisition,” said Kortbawi.

In this changing environment, law firms that can respond appropriately to client needs have new opportunities to expand their business, said Jimmy Haoula, Managing Partner, BSA. “Only regional law firms that broaden their expertise and raise service levels amidst these changes will be able to remain competitive in the new environment. The scope of services that commercial law firms can provide has widened considerably. Firms that can embrace change and are committed to quality stand to gain,” he added.

BSA, whose head office is in the Dubai International Financial Centre (DIFC), is seeking to expand across the region to both meet rising demand from existing clients and take advantage of new opportunities. The law firm, which counts large global corporations like Reinsurance Group of America (RGA) and Halliburton among its key clients, recently established a new office in Muscat-Oman and is set to open an office in Iraq by the end of 2012.

"We are focused on constantly building our expertise and raising our ability to deliver high quality technical and commercial advice that adds real value to the client’s business. We are expanding within the region to offer a full-fledged service to our clients in key markets in order to better help them meet their commercial objectives,” said Michael Kortbawi.

BSA is also part of Meritas, a global alliance of commercial law firms whose members are regularly assessed for the breadth of their practice expertise and client satisfaction, which ensures that clients receive the same high quality legal work and service from every Meritas firm. BSA, which has actively supported the regional needs of Meritas, is now working closely with the alliance to support it in widening its presence in the region.

Tanna Moore, CEO of Meritas said: “Our UAE member firm, BSA, is our core service point and provides key support for our needs in the entire Middle East region. All Meritas member firms share a positive, consultative approach to business and a commitment to excellent client service. BSA has consistently demonstrated these qualities throughout its history. Businesses around the world will benefit from BSA’s partner-level expertise, personal service and collaborative, customized business approach.”

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