REPORT: $1 trillion of projects planned over next six years


Huge opportunities exist for international law firms in the Gulf, with more than $1 trillion of new infrastructure, mergers and acquisitions (M&A), and other major projects planned for the next six years, it was claimed last week.



However, the report by consultants Hildebrandt International warned that competition for talent is likely to be the single biggest issue faced by firms looking to establish a credible presence in the Gulf.



The quality of lawyers is variable and the poaching of partners and teams remains a major feature of the market, it said.



Law firms have long benefited from the rising wealth of the region, but building a profitable practice, the report added, required focusing on clients and matters with international aspects, rather than on local work. Increasing competition is also 'likely to squeeze profitability'.



Opportunities fall mostly in corporate and commercial work, an area dominated by UK and, to a lesser extent, US firms. There are also rich pickings for practice-led firms, particularly in areas such as projects and energy.



Dubai-based Matthew Gill, Clyde & Co's operations director for the Middle East, said: 'There are huge opportunities for expansion in the Gulf. Over the last three years we have more than trebled in size to almost 90 fee-earners.'



Bruce Embley, head of corporate at Freshfields Bruckhaus Deringer in Dubai, said: 'We've seen several high-profile M&A transactions lately, as well as some good project finance and real estate deals. The buoyant market is reflected in the way the office has grown from two lawyers to more than 30 in two years.'



However, the report cautioned that lawyers 'should be troubled by the thought' of operating in societies in which democracy is weak or non-existent and human rights abuses occur.



Jonathan Rayner