Saudi Arabia is poised to permit law firms fully owned by foreigners to operate within the kingdom, a significant move aimed at boosting investment, as reported by local media.
The Saudi Ministry of Justice plans to approve an amendment enabling a law firm, licensed to practice the legal profession in the kingdom, to establish a professional company fully owned by non-Saudis, according to the news website Akhbar24.
The ministry has posted the proposed amendment on the government Survey Platform for public feedback.
Amendment Details
The proposed amendment allows licensed legal professional firms to offer legal consultations and represent clients in Saudi courts, in compliance with regulatory stipulations.
Licensed foreign legal professional firms must either establish a new professional company following the related provisions and executive regulations of the Saudi system or open one or more branches of their existing firm within the kingdom.
Attracting Global Expertise
This initiative aims to:
. Develop the legal profession
. Attract global expertise in the legal field
. Enhance competitiveness
. Improve the working environment in the kingdom
. Upgrade legal professionalism
. Create more jobs for Saudis
. Motivate foreign investors
. Encourage foreign firms to establish their regional headquarters in Saudi Arabia
Economic Diversification
In recent years, Saudi Arabia has introduced investor-friendly policies to diversify its oil-dependent economy and transform the kingdom into a regional business hub. Additionally, Saudi Arabia has imposed restrictions on government institutions' contracting with companies not based in the country, requiring government agencies to adhere to specific stipulations when contracting with firms lacking regional headquarters in the kingdom.
