AlGhazzawi and Partners

Bankruptcy and Corporate Insolvency Expertise in Saudi Arabia

Offices in Jeddah, Riyadh, and Dammam

Bankruptcy and corporate insolvency cases create challenging legal hurdles that require knowledge and proficiency to navigate, especially when a salvage exercise is involved. Any corporate restructuring process requires a deep understanding of the rights and obligations of all affected parties. With experience in all key industry sectors, our team is equipped to assist you in meeting claim deadlines and will guide you to adeptly fulfill all regulatory provisions, prioritizing the protection of your rights and interests both inside and outside of court.

At AlGhazzawi & Partners, we have over 50 years of experience advising debt and equity financers, borrowers, lenders, arrangers, project sponsors, international financial organizations and export-credit agencies through corporate liquidation, insolvency, and bankruptcy proceedings. Our legal team has tackled some of the most complex legal challenges faced by both domestic and foreign-owned companies across a variety of industries and sectors.

With our Cooperation Agreement with Gowling WLG, we combine our extensive local knowledge with Gowling’s global bankruptcy and insolvency expertise. This allows us to seamlessly serve our clients on multi-jurisdictional matters.

Navigate Rapidly Evolving Bankruptcy and Corporate Insolvency Regulations

The Regulatory regime covering insolvencies and bankruptcy has recently been revamped in the Kingdom to strengthen protection for creditors. These changes aim to prevent fraud deployed by unscrupulous businesses that siphon funds and dispose of assets to avoid fulfilling their financial obligations. Our practice has evolved and kept pace with the changing legal landscape, and our legal team remains well-versed with the current policy frameworks and regulations here in Saudi Arabia and internationally.

Bankruptcy and Insolvency Help for Domestic and Foreign-Owned Companies

Our team advises on a full range of bankruptcy and insolvency transactions in the Kingdom of Saudi Arabia including closures of businesses owned by national entities and/or international companies. We work closely with company auditors and advisors to ensure that all fiscal requirements are duly met within prescribed time frames, a key to a quick and successful closure. We regularly represent and protect the interests of various stakeholders, including:

• Owners
• Majority shareholders
• Minority shareholders
• Foreign partners.

Our legal team is committed to facilitating quick solutions for debtors and creditors prior to the dissipation of available assets. Where possible, we help companies continue their operations despite enduring losses while guiding them to fulfill mandatory regulatory requirements to avoid penalties, fines and other punitive actions.

We are experienced in acting as a liquidator for companies opting for voluntary closure as well as those forced by the courts to undergo liquidation. Our experienced legal team ensures that the liabilities of the companies we represent are managed and the rights of creditors are well-served.

About Our Bankruptcy and Insolvency Practice Group

Our legal team’s broad experience in general business, corporate and commercial finance, and dispute resolution, makes us uniquely equipped to understand the practicalities of distressed organizations and to develop, in collaboration with our clients, strategies for optimum resolution of their problems.

Notable Bankruptcy and Insolvency projects include:

• Guiding an Italian company engaged in providing services to the oil and gas industries in the voluntary closure of its businesses in Saudi Arabia.
• Aiding a Japanese multinational company in organizing the complete formal process of voluntary closure of businesses as well as acting as the official liquidator and trustee over its monetary and non-monetary assets.
• Handling a long stretched dispute for a Japanese multinational over dispute with their partner in a Saudi limited liability company and arranging its liquidation through court proceedings
• Working with a Singaporean company to obtain judgement from relevant courts in order to close businesses after their Saudi partner abandoned the business and declined to facilitate closure.
• Contesting bankruptcy declared by a real estate giant based in Riyadh to enforce a judicial order against the debtor before the declaration of bankruptcy.

Contact Our Legal Team

No matter the situation, our team has the mastery and reach to aid in navigating your bankruptcy or insolvency issues. With offices located in Jeddah, Dammam, and Riyadh, we provide bankruptcy and insolvency services to domestic and international clients across the Kingdom. Contact us to book a consultation.

Five Decades of Dispute Resolution and ADR Expertise in Saudi Arabia

Offices in Jeddah, Riyadh, and Dammam

When commercial and corporate disputes arise, using options that avoid litigation can significantly reduce both time to resolution and legal fees. It can also help preserve the relationship between opposing parties. Alternative Dispute Resolution (ADR), which refers to solving disputes outside the court system (and includes negotiation, mediation, and arbitration) has gained significant importance in the Kingdom as the preferred method to resolving business disputes.

ADR has been a cornerstone of our practice for more than 50 years. Having successfully represented domestic and international clients in hundreds of high-profile, high-stake matters in the Kingdom, our lawyers are highly qualified ADR practitioners who are widely considered leaders in their field, and practice in accordance with international and professional standards in Arabic and/or English. As a firm, we are committed to helping clients prevent and resolve disputes by applying innovative alternatives to litigation.

A Successful Dispute Resolution Strategy Begins Early

Conducting business in the Saudi market that stands the test of time requires a robust understanding of all available dispute resolution mechanisms that can be applied in the event of a disagreement among parties. Protecting clients from potential future disputes begins well before agreements are signed.

Mediation and Arbitration clauses, meticulously drafted by us in contracts and agreements, have been instrumental in protecting the interests of our clients. Be it the choice of law, means of dispute resolution, venue provision, or other legal and regulatory issues, we ensure our clients are protected now and in the future.

Dispute prevention and early resolution of unavoidable conflicts are foundational to our practice. We have years of experience working directly with key project personnel to avoid disputes and effectively and efficiently resolve – on a ‘real-time’ basis – those disputes which cannot be avoided while keeping them outside the courts.

Using ADR to Settle Commercial and Corporate Dispute in KSA

A skilled mediator is critical to the resolution of any dispute between two or more parties. The earlier dispute resolution occurs, the greater the chance of preserving the relationship between the parties involved. Unlike litigation, which will have a win or lose outcome, opposing parties can use ADR to tailor the outcome and the dispute resolution process.

Where parties agree to refer their disputes to Saudi or international arbitration regimes, arbitration can prove to be a cost-effective means for the settlement of disputes, particularly disputes involving multinational parties. Like mediation, arbitration is highly flexible, yet it demands greater attention and requires expert legal advisors who have deeper insight and can think strategically.

Like most other jurisdictions, the local arbitration regime considers the arbitral award as final and binding; therefore, our lawyers ensure that they present their arguments and evidence in the greatest detail possible.

We regularly undertake bespoke processes to resolve disputes which can include:

• Direct negotiation
• Mediation
• Domestic and International Arbitration Boards and Arbitral Tribunals
• Expert determinations
• Adjudications
• Committees formed by royal decree

And where ADR methods are unsuccessful, our robust litigation team is ready to protect your interests.

About Our Dispute Resolution Team

The Dispute Resolution Practice at Al-Ghazzawi and Partners combines over five decades of extensive expertise with training to international best practice standards at the AAA-ICDR. Our team maintains a heavy schedule of lectures and seminars on techniques for avoiding and resolving disputes and are consistently at the forefront of the latest international developments in ADR practices.

Our team’s ability to understand the nature of disputes and analyze the best means of its resolution has earned us recognition among peers and across the region. Our firm’s involvement and reputation will often influence opponents to settle commercial disputes faster.

• We act confidentially and with sensitivity and a sense of urgency.
• Our deep business grounding allows us to see the big picture and create innovative solutions.
• Our out-of-court negotiation skills help us obtain desirable outcomes for our clients.
• We ensure that the decisions or agreements between parties are binding and enforceable.
• Our active involvement in several national and international arbitration boards is an advantage to our clients.

We have successfully counselled clients through:

• General commercial and contractual disputes
• Shareholder disputes
• Regulatory investigations and enforcement proceedings
• Fraud and asset tracing
• Property and estate disputes
• Construction and engineering disputes
• Banking, insurance, and financial disputes

Notable Alternative Dispute Resolution Projects Include:

• Advising a major Saudi food manufacturing company over its claims in the amount of USD $173 million. After termination of its joint venture with a leading international food products company.
• Advising a leading Swiss-based Islamic Finance institution on their dispute with a Saudi borrower which was heard before a Finance Committee formed by Royal Decree.
• Settling a USD $20 million dispute relating to the construction of a tower that occurred between a major Italian contractor and a subcontractor.
• Advising a leading domestic contractor on a USD $10 million dispute for breach of contract and non-compliance with contractual specifications relating to the construction of exhaust pipes in a power plant.
• Advising a major oil and gas company in a dispute with a publicly listed refining company over contractual obligations and compensation sought in amounts exceeding USD $400 million.
• Acting for a leading mobile telephone operator in a dispute with another operator over sharing of revenues in excess of USD $125 million. Our team facilitated an amicable settlement of the dispute.

Notable Arbitration Projects Include:

• Advising two Saudi leading contractors, as a co-counsel, about their dispute with a leading mega foreign contractor over the assignment and/or subcontract of an EPC contract of a mega public transport project in Riyadh city, in accordance with the shareholders agreement concluded between them. The value of this EPC contract was in excess of USD $5.9 billion. Our legal team successfully attended before the International Court of Arbitration of the International Chamber of Commerce in Geneva, Switzerland, as an expert on the administrative law in Saudi Arabia, and prepared several expert statements requested by the International Court of Arbitration about the project owner’s authority to exempt a contractor from the subjection to any of the administrative law provisions, under government project contracts.
• A mixed capital Industrial Conglomerate of 10 large sized company in their dispute with minority shareholders – One of the most swiftly concluded arbitral award.
• Representing a Saudi leading mega power plant construction and general contracting company on an arbitration case before the International Court of Arbitration of International Chamber of Commerce (Paris) in defending the client and filing a counterclaim of USD $25.66 million against the claimant on the principles of Shari’a law and the laws of Saudi Arabia, which governed the contracts between the parties.
• Acting for a leading Saudi corporate on its claim for €280 million against its foreign joint venture partner before the Jeddah Chamber of Commerce Arbitral Tribunal.
• Representing a leading Saudi industrial company on its claim in excess of USD $100 million against its foreign joint venture partner. The claim also included the purchase of the foreign joint venture partner’s shares. This was successfully decided in favour of the client before the Jeddah Chamber of Commerce Arbitral Tribunal.
• Advising a Saudi industrial joint stock company on its dispute with its partner, a leading German company, before Jeddah Chamber of Commerce Arbitral Tribunal, claiming damages of over USD $171 million.
• Defending a Saudi power supplier in an ICC arbitration over a dispute arising out of the construction of a power plant.
• Successfully representing a leading Saudi company on its claim for USD $255 million against its foreign joint venture partner before the Jeddah Chamber of Commerce and Industry.
• Representing a major Saudi food manufacturing company over its claims in the amount of approximately USD $579 million after termination of its joint venture with a leading international food products company in the Jeddah Chamber of Commerce and Industry. Our team obtained a favorable decision.
• Representing a leading Saudi food industries company in its arbitration case against a renowned Swiss multinational before the Jeddah Chamber of Commerce on claims for financial damages and losses based on breach and unlawful termination of contracts, the value of claims being around USD $173 million. Our team successfully represented and obtained a favourable award for the client.
• Advising an oil and gas major in a dispute involving claims of over USD $24 million by a contractor towards the works performed and damages. Our team successfully represented the client before the arbitral tribunal and had the tribunal adjudge award substantially lower than the sums claimed by the contractor.
• Acting for a major Saudi industrial joint stock company on its dispute with its partner, a leading German company, before Jeddah Chamber of Commerce Arbitral Tribunal, claiming damages of over USD $171 million and termination of joint venture and dissolution of the commercial relationship. Our legal team represented and obtained a favourable award for the client.
• Acting for a major GCC financial institution on their dispute over a financial guarantee in the amount of USD $200 million for becoming the master developer of a mega multi-use government development project, one of its kind in Saudi Arabia. Our team advised and represented the client before the Committee for the Settlement of Banking Disputes.
• Representing a large sized Saudi oil company in a dispute with a contractual petrochemical company in the Board of Grievance Commercial Committee, the value of the claim being USD $200 million.
• Representing a leading Turkish company in its dispute with its Saudi distributor before the Board of Grievance (Commercial Court). This matter was judicially resolved in favour of our client.
• Representing a leading Swiss-based Islamic finance institution on their dispute with a Saudi borrower which was heard before a Finance Committee formed by a royal decree.
• Representing a Saudi leading mega power plant construction and general contracting company on an arbitration case before the International Court of Arbitration of International Chamber of Commerce (Paris) in defending the client and filing a counterclaim of USD $25.66 million against the claimant on the principles of Sharia law and the laws of Saudi Arabia, which governed the contracts between the parties.
• Representing a Saudi leading mega power plant construction and general contracting company in an arbitration case before the International Court of Arbitration of the International Chamber of Commerce (Paris). Our team defended the client over the claim filed against it and filed counterclaims in the amount of USD $25.66 million on the principles of Sharia and laws of Saudi Arabia. Our team obtained favourable results for the client.
• Representing a leading Saudi food industries company in its arbitration case against a renowned Swiss multinational before the Jeddah Chamber of Commerce on claims for financial damages and losses based on breach and unlawful termination of contracts, the value of claims being around USD $173 million. Our team successfully represented and obtained a favourable award for the client.
• Defending a Saudi power supplier in an International Chamber of Commerce arbitration over a dispute arising out of the construction of a power plant.

Contact Our Dispute Resolution Practice

No matter the complexity of your dispute, our legal team can help protect your interest. We have the capabilities and depth to produce sound, binding resolutions. With offices located in Jeddah, Dammam, and Riyadh, we support domestic and international clients across the Kingdom. Contact us to book a consultation.

Employment Legal Expertise in Saudi Arabia

Offices in Jeddah, Riyadh, and Dammam

Employment laws and regulations governing labour relations are rapidly shifting in the Kingdom of Saudi Arabia. The “Saudization” system (i.e. Nitaqat) that requires employers in the private sector to hire a minimum percentage of Saudi nationals has been underway for several years. More recently, the Saudi Arabian Ministry of Human Resources and Social Development launched a Labour Reform Initiative (LRI) to replace the existing sponsorship system (i.e. kafala), which had previously placed significant constraints on foreign worker job mobility in the Kingdom.

Al-Ghazzawi and Partners can help your business successfully navigate the changing employment landscape. Throughout our five decades of practice, we have strongly believed that maintaining sound employer-employee relations is critical to our clients’ success. Labour disruptions, high employee turnover, fraud, and negligence can exact a great toll on a business – as does being offside with labour regulations.

Managing Labour Disputes in Saudi Arabia Requires Expert Guidance

In past years, labour disputes were referred to the Ministry of Labour Commission and the High Commission for the Settlement of Labour Dispute. Today, Labour disputes are referred to new specialized courts established pursuant to Royal Decree No. 20712. There are seven labour courts across the Kingdom in Riyadh, Jeddah, Dammam, Makkah, Madina, Buraydah, and Abha. In addition, there are 27 supporting Labour Circuits and six Appeal Courts.

Clients depend on our guidance to manage labour disputes in the most timely, confidential, and cost-effective methods possible – while protecting their reputation as employers within the Kingdom.

Our employment law services regularly include:

• Representing clients at all Labour Committee and Labour Court hearings.
• Launching urgent proceedings in the Labour Committees.
• Advice on labour strategies and compensation structures.
• Drafting contracts of employment and other procedural agreements.
• Advice for new market entrants on labour laws and strategies.
• Advice on the labour implications of mergers and acquisitions.
• Advice on alternative means of dispute resolution including mediation and arbitration.
• Initiating litigation when required.
• Defending against accusations of unfair labour practices.
• Handling issues related to labour dismissal and employment benefits.
• Conducting internal investigations with employees for negligence, improper discharge of their duties, financial misconduct, fraud, misappropriation, forgery, etc.

Serving Domestic and International Clients on Matters of Employment Law

Our clients operate locally, regionally, and globally. As such, our employment legal expertise extends beyond the Kingdom. With our Cooperation Agreement with Gowlings WLG, we combine our extensive local knowledge with Gowlings’ expertise in all major global jurisdictions. This allows us to serve our international clients seamlessly and remain consistent with global best practices and their own internal employment policies.

Furthermore, growing Environmental, Social and Governance (ESG) expectations of all global companies make it increasingly critical for boards and management to familiarize themselves with how their companies are managing human capital in Saudi Arabia. The pressure to maintain fair and consistent employment standards, and avoid any appearance of exploitation, has never been greater. We assist our clients to incorporate social and human capital policies in their governance and stay ahead of both local labour laws and international best practices.

About Our Employment Law Practice Group

Our legal team regularly handles the most complex issues under employment law in the Kingdom. They are supported by our team of litigators who adeptly resolve most disputes through negotiation and mediation, well before matters reach the courts.

Notable employment law projects include:

• Advising a global communications service provider on employment issues arising from the acquisition of another international firm in the field of telecommunication and networking.
• Guiding a leading tobacco manufacturer through the dismissal of a large batch of employees.
• Aiding an oil and gas major affiliate in a claim by 130 employees for payment of early retirement benefits, saving the client over USD $13.3 million.
• Advising a large multinational industrial gas manufacturing company in its claims against a key executive for misappropriation of company funds.

Contact Our Employment Law Practice Group

No matter the complexity of your labour related challenges, our legal team has the capabilities and depth to resolve the most complex disputes. With offices located in Jeddah, Dammam, and Riyadh, we support domestic and international clients across the Kingdom. Contact us to book a consultation.

Commercial Insurance Legal Services in Saudi Arabia

Offices in Jeddah, Riyadh, and Dammam

The insurance industry gained greater prominence in the Kingdom of Saudi Arabia after the opening of the sector to foreign entities and the resulting consolidation that followed. Furthermore, the industry experienced rapid growth when vehicle and medical insurance became mandatory in the Kingdom and as new economic reforms encouraged foreign investment and economic diversification. The laws and regulations governing various aspects of insurance also evolved and became much broader to help regulate relations between different players in the insurance sector.

With over 50 years of experience, AlGhazzawi & Partners is considered the leading Saudi law firm for resolving complex insurance disputes. We have been active participants in the growth of this sector with broad experience representing and advising insurers, policyholders, and other stakeholders on commercial insurance agreements and coverage disputes.

Insurance Laws Continue to Change

Our firm has remained at the forefront of the rapidly evolving legal and regulatory regime governing insurance in the Kingdom. We have helped draft complex agreements between industry participants including:

• Shareholders
• Partners
• Underwriters
• Reinsurers
• Service providers
• Agents

Our insurance practice also has vast experience resolving commercial insurance claim disputes including those involving:

• Commercial and industrial fires
• Motor vehicle accidents
• Industrial accidents
• Medical liability
• General liability
• Professional indemnity
• Product liability
• Re-insurance
• Transport, aviation, and marine

We work closely with our clients to analyze coverage issues and develop cost-effective strategies to maximize the claim value of their insured assets.

We apply our insurance expertise and vast resources to resolve insurance claim disputes using the most timely and cost-effective methods available. We settle most disputes through persuasion and negotiation using Alternative Dispute Resolution mechanisms. However, when necessary, we pursue litigation to recover monetary damages when insurers deny claims and are unwilling to negotiate a fair settlement.

About Our Insurance Practice Team

Our Insurance Practice team has represented domestic and international insurance companies, policyholders, and other stakeholders on complex matters before the Committees for Settlement of Insurance Disputes and before the administrative courts and general courts.

Notable Insurance Related Matters Include:

• Providing ongoing advice to a joint-stock company engaged in multiple insurance businesses on different issues related to insurance matters.
• Representing a leading insurance agency and brokerage firm engaged in underwriting medical and vehicle insurance policies with the principal over claims of unpaid commissions as well as damages over breach of contractual obligations.

Contact Our Insurance Practice Team

No matter the complexity of your insurance dispute, our legal team has the capabilities and depth to defend your interests and produce sound resolutions. With offices located in Jeddah, Dammam, and Riyadh, we support domestic and international clients across the Kingdom. Contact us to book a consultation.

Intellectual Property Legal Services in Saudi Arabia

Offices in Jeddah, Riyadh, and Dammam

Like other jurisdictions, there is an increased focus on the protection of intellectual property in Saudi Arabia and encompasses all types of IP rights.

Trademark and patent infringement of successful brands has been an intractable issue in Saudi Arabia and the region. Protecting Intellectual Property (IP) rights has become of strategic importance in fulfilling the Kingdom of Saudi Arabia’s “Vision 2030” ambitions. The government recognizes that IP rights play a central role in fueling creativity, innovation, and business investment – leading to a more diversified competitive domestic economy as well as making the business environment for foreign entrants more inviting and secure. As a result, Saudi Arabia’s IP regulatory landscape is rapidly changing, and new ways and means are being adopted to ensure the protection of IP rights in line with international treaties, protocols, and conventions to which Saudi Arabia is a party.

Our IP Practice Team has gained wide recognition in contesting the use of internationally established trademarks, trade names, copyrights, inventions, and proprietary know-how under various international treaties. We have also successfully prevented patent infringement and the sale of counterfeit goods in the Kingdom.

A Growing Commitment to Protect IP Rights

In 2018, the Government of Saudi Arabia established the Saudi Authority for Intellectual Property (SAIP) as the sole IP authority in the Kingdom and brought it under the folds of a unified authority. SAIP has also strengthened cooperation for IP rights with several key international trading partners including the United States, China, the European Union, Japan, and Korea.

SAIP is also responsible for proposing new rules and regulations relating to IP rights to ensure national legislation keeps pace with the rapidly evolving international technology landscape. These developments will further strengthen the Kingdom’s domestic intellectual property protection framework so that it may be at par with international IP best practices.

As leading practitioners, our legal team works closely with SAIP and remains at the forefront of developments in intellectual property laws and regulations in the Kingdom. We regularly advise clients on:

• Domain name disputes.
• Ecommerce infringements.
• Unlawful and restrictive trade practices.
• Trademark licensing and infringements.
• Copyright infringements.
• Industrial design.
• IP due diligence for M&A transactions.

We also undertake registration of trademarks and patents covering the entire Gulf Cooperation Council (GCC) countries through our correspondent firms.

Furthermore, to protect and enforce your rights, we are widely considered to be leaders in dispute resolution services in the Kingdom, applying proven Alternative Dispute Resolution mechanisms and initiating litigation where required to defend Intellectual Property rights.

About Our Intellectual Property Practice Group

Our IP Legal Team draws on over 50 years of experience representing domestic and international business clients in the Kingdom.

Notable Intellectual Property Matters Include:

• Representing an Italian automotive multinational in successfully preventing import and sale of counterfeit motor spare parts in the Kingdom and taking action against the entities involved in such trade.
• Advising a Kenyan tea company in contesting a similar trademark issued to a local establishment.
• Representing A Saudi Industrial conglomerate in a claim raised by a group of minority shareholders in the company over its worldwide popular trademark.
• Representing a French Restaurant in contesting a similar trademark issued to a local entity.
• Representing a Mobile Telephone Operator over a claim filed by an individual disputing patent right on some of the technologies being used by our client.

Contact Our Intellectual Property Team

If you seek IP protection or your IP rights have been infringed upon, please contact us for support. No matter the complexity of your matter, our legal team has the capabilities and depth to defend your interests and produce sound resolutions. With offices located in Jeddah, Dammam, and Riyadh, we support domestic and international clients across the Kingdom. Contact us to book a consultation.

Real Estate & Construction Legal Expertise in Saudi Arabia

Offices in Jeddah, Riyadh, and Dammam

Commercial real estate and construction projects are some of the most common economic activities in the Kingdom of Saudi Arabia. Issues often arise due to complex ownership structures, changing legislation, project delays, bankruptcies before completion of projects, and contractual disputes.

AlGhazzawi & Partners is well-positioned to provide legal support covering all aspects of commercial real estate and construction projects. For over 50 years, we have been advising investors, developers, government bodies, investment funds, REITs, financial institutions, landlords, and tenants on all aspects of real estate and construction law. Our team has the foresight and relevant insights to help you conduct business in the Kingdom with confidence and increase your chances of success.

Extensive Knowledge of Commercial Real Estate Law

We have assisted both domestic and international clients on all aspects of real estate including purchase and sale, financing and refinancing, foreclosures, leases, zoning issues, title examinations, title disputes, closings, and managing the relationship with regulatory authorities and other stakeholders involved in development projects including under the Public Private Partnerships (PPP) model.

Commercial real estate projects often require a law firm with strong knowledge in other areas of law. As a full-service business law firm, we have the expertise to address far-reaching legal concerns involving real estate transactions and disputes in the Kingdom. These can involve contract negotiation and drafting, tax strategies, procurement strategies, employment concerns, regulatory approvals, environmental assessments, alternative dispute resolution, litigation, and other ongoing support for complex legal challenges you may face in real estate and construction matters.

Our lawyers are extremely well versed in tax-effective and appropriate corporate structures for real estate ventures and in special considerations involving industrial cities, special economic zones, reservations, and concessions.

About Our Real Estate and Construction Practice Group

As a leading Saudi law firm with over five decades of experience, we are proud of our active role in the unprecedented growth of real estate development in the Kingdom. Our team has advised on thousands of real estate matters involving some of the Kingdom’s largest transactions and projects. We continue to be the preferred and trusted legal advisors to some of the most prolific real estate investors and developers in the Region and around the world.

Notable Real Estate & Construction projects include:

• Advising a UAE bank and a Kuwaiti real estate conglomerate on their USD $3.2 billion investment in 8 towers in the City of Makkah.
• Aiding Jazan Economic City Land Limited and MMC International, a Malaysian company, on various matters related to the development and financing of Jazan Economic City.
• Advising Jeddah Development & Urban Regenerating Co. (JDURC), the commercial arm of the Municipality of Jeddah on setting up tenders to invite international consortia in developing various real estate projects known as Jeddah East; Jeddah Cultural and Social Centre, a 170,000 square meters Corniche to be rehabilitated and renovated and the Khozam Palace, a 690,000 square meters land in reviewing and advising on the relevant requests for proposals, information memoranda, the development agreements and the joint venture agreements and supervising the required legal due diligences, including advice on the tender process and all regulatory matters.
• Advising Al-Balad Al Ameen Development and Urban Regeneration, the real estate arm of the Makkah Municipality, on the formation of several urban development companies, involved in the development of several slums in Makkah Al Mukarramah, increase and entry of new shareholders and conversion of these companies to closed joint-stock companies, including drafting the shareholders’ agreement, in Makkah Al Mukarramah.
• Aiding Saudi Investment Group & Marketing Co. Ltd. (SIGMAC), on a number of development projects, including: Mixed-use project on Sultan Street, Jeddah, Arabian Business Centre, a nine-story commercial building on Prince Mohammed Street in Dammam, Al-Waha Mall in Dammam, Millennium Centre in Jeddah, a commercial building with a built-up and lettable area of around 9,000 square metres.
• Advising Jabal Omar Development Company, on the second biggest rights issue in Saudi Arabia in the total amount USD $688 million. Our services included advising on numerous issues relating to the slum areas in Makkah, and the public offering of the shares; the complexity of the transaction involved issues related to the property which most of the Makkah residents encounter in this Holy City.
• Advising a major closed joint-stock company on the development of an area of 1.7 million square meters in Makkah Al Mukarramah city including drafting the shareholders’ agreement, forming the company and increasing the capital of the company;
• Aiding a municipal company with several disputes over the partnership with the private sector and the liability of the municipal companies for the early termination of the development projects contracts and withdrawal of projects, in Makkah Al Mukarramah.
• Working with the Eastern Province Municipality in rendering comprehensive advice for forming a public company for executing a huge real estate development project for beautification of Dammam’s waterfront beach.
• Advising a municipal company, a subsidiary of the commercial arm of the Municipality of Makkah, on its development of 6.6 million square meters of land in Makkah city.

Construction – Notable Credentials:

• Acting for AL-Latifia Trading and Contracting Company, a leading large sized contracting company in its dispute with one of its subcontractors, a subsidiary of a UAE based construction conglomerate covering MEP works, for two of its customers, namely, General Organization for Social Insurance (GOSI) Hilton Group in Riyadh with claims and counterclaims exceeding USD $240 Million. The Arbitral Panel awarded Al-Latifia a sum in excess of USD $80 Million.
• Defending a Saudi power supplier in an ICC arbitration over a dispute arising out of the construction of a power plant;
• Representing a Saudi leading mega power plant construction and general contracting company on an arbitration case before the International Court of Arbitration of International Chamber of Commerce (Paris) in defending the client and filing a counterclaim of USD $25.66 million against the claimant on the principles of Sharia law and the laws of Saudi Arabia, which governed the contractsbetween the parties.
• Advising two Saudi leading contractors, as a co-counsel, about their dispute with a leading mega foreign contractor over the assignment and/or subcontract ofan EPC contract of mega public transport project in Riyadh city, in accordance with the shareholders agreement concluded between them; the value of this EPC contract was in excess of USD $5.9 billion, successfully attending before the International Court of Arbitration of the International Chamber of Commerce in Geneva, Switzerland, as an expert on the administrative law in Saudi Arabia, and prepared several expert statements requested by the International Court of Arbitration about the project owner’s authority to exempt a contractor from the subjection to any of the administrative law provisions, under government project contracts.
• Advising a Singaporean Multinational in their dispute with a local contractor over construction of a large-sized industrial plant with claim amounts in excess of SAR 75 million. Negotiated an amicable settlement between the parties.

Infrastructure – Notable Credentials:

• Advising a Spanish-Saudi consortium on its USD $8.25 billion Phase 2 of the Haramain High Speed Railway Project connecting the two Holy cities of Mecca and Medina via Jeddah and advising on its overall transaction management in Saudi Arabia and on Sharia law; advising on all contractual aspects of the project beginning from assisting the prime contractor with the bid preparation to pre-qualification and later with the execution – a multi-billion US dollar transaction that required heavy involvement from our commercial and corporate team including but not limited to negotiations on behalf of the client with government ministries and authorities;
• Advising a leading Chinese railway construction company as the main contractor on a USD $2 billion Mecca Metro Project (Al-Mashaaer Al-Muqaddassah Metro) on all its legal issues relating to the Mega Project, drafting various agreements and contracts and coordinating and liaising on behalf of the company with all concerned ministries and agencies.

Contact Our Real Estate and Construction Legal Team

No matter the complexity or time-sensitive nature of your real estate and/or construction project, our lawyers have the experience and knowledge to help protect your interests. With offices located in Jeddah, Dammam, and Riyadh, we provide real estate and construction legal services to domestic and international clients across the Kingdom. Contact us to book a consultation.

Business Setup and Structuring Legal Expertise in Saudi Arabia

Offices in Jeddah, Riyadh, and Dammam

Economic reforms in Saudi Arabia have unleashed a new era of Saudi entrepreneurship and a sharp increase in direct foreign investment in the form of new market entrants, mergers, acquisitions, and partnerships. While the opportunities are exciting, adequate diligence and prudence must be applied to how all new ventures are structured. Failure to do so can have serious and unexpected consequences for any business. The Kingdom is continuously codifying business activities and integrating licensing and incorporation services to simplify and streamline access, and this necessitates that existing businesses also align with the changes.

Our corporate practice is a major practice area of our firm and encompasses the entire spectrum of corporate law. With over 50 years of experience, we have guided thousands of emerging and growing entities, multinational, investment banks, private equity funds, and family businesses on the successful formation of new businesses and the ideal corporate structures that are most suitable for their ventures. This extensive know-how allows us to offer our clients practical and informed insights that are compliant with both Sharia practices and the rapidly evolving regulatory environment in the Kingdom.

Business Structuring for Domestic and Foreign-Owned Corporations

The successful structuring of entities in Saudi Arabia requires a thorough understanding of the entire spectrum of corporate law and necessitates staying abreast of changing regulatory regimes.

Our market-leading Corporate Practice encompasses all key business areas that may impact our clients including taxation, employment, environment, technology, intellectual property, real estate, contracts, investments, licensing issues, concession, public procurement policies, capital market law, alternative dispute resolution, litigation, and others. We maintain a well-regarded reputation with government authorities and remain up to date on regulatory changes that we utilize to inform and benefit our clients.

Our decades of experience in the Kingdom’s banking and finance industry are paired with extensive knowledge relating to the setup of legal entities and structures favoured by Islamic banks and Sharia scholars in the Middle East.

This combination of knowledge and experience makes us a highly-valued partner in the formation of new entities in the Kingdom including:

• General and limited partnerships
• Joint ventures
• Limited liability companies (LLCs)
• Joint stock companies
• Saudi Arabian branches
• Investment funds
• Not-for-profits
• Franchises, agency/distributorships

We also regularly advise clients on:

• Corporate governance
• Mergers and acquisitions
• Obtaining regulatory licenses
• Registration with the appropriate government agencies
• Negotiating and drafting of commercial agreements
• Licensing of trademarks and names.
• Protection of intellectual property rights
• Other corporate matters

And should you find yourself in a position of conflict which requires legal support, our team has extensive expertise in Alternative Dispute Resolution (ADR) and litigation to defend your interests.

About Our Business Structuring Legal Team

Our team succeeds thanks to their commitment to understand each client’s specific challenges and produce practical and cost-effective solutions that align with the law and the client’s best interest. We have a long and proven track record of acting on high-profile deals and complex structuring transactions in all key sectors of the economy.

Notable corporate structuring projects include:

• Advising a Spanish-Saudi consortium on its USD $8.25 billion Phase 2 of the Haramain High Speed Railway Project connecting the two Holy cities of Mecca and Madinah via Jeddah and advising on its overall transaction management in Saudi Arabia and on Sharia law; advising on all contractual aspects of the project beginning from assisting the prime contractor with the bid preparation to pre-qualification and later with the execution – a multi-billion US dollar transaction that required heavy involvement from our commercial and corporate team including but not limited to negotiations on behalf of the client with government ministries and authorities.
• Advising a leading Chinese railway construction company as the main contractor on a USD $2 billion Mecca Metro Project (Al-Mashaaer Al-Muqaddassah Metro) on all legal issues relating to the Mega Project, drafting various agreements and contracts and coordinating and liaising on behalf of the company with all concerned ministries and agencies.
• Advising a French and Spanish consortium on their bids for the operation and management of water and wastewater systems in Riyadh and Jeddah respectively with the Ministry of Water and Electricity and in reviewing and advising on the agreements from Sharia perspective and supervising the due diligence exercise.
• Advising a major Saudi company (in association with an international cargo/courier company) on all its Saudi agreements, i.e. the dry lease and wet lease agreements, and all related business agreements as well as in the restructuring of its relationship with its international partner and assisting in the assignments that include spinning off the existing company, creating two different companies and drafting and reviewing all agreements relating to the acquisition of shares, transferring of all the licenses, assets and employees etc. to this company, by obtaining the investment licenses that allows the foreign company to hold equity in the Saudi company.
• Advising an Austrian industrial company on two major projects with a Saudi entity from a Saudi law perspective and other legal issues with respect to Saudi laws and regulations. One project was for the expansion of an existing steel making plant and the other for a new direct reduction iron facility. Both projects were executed through a consortium within the steel plant sites in Saudi Arabia, the value of which was in excess of USD $90 million.
• Advising a major retail franchise operator with more than 70 consumer retail brands across the Middle East and North Africa, Russia, Turkey and Europe – on Saudi law concerning contentious and non-contentious matters related to their business in Saudi Arabia.
• Advising a major Saudi industrial corporate on asset purchase agreemnts and stock transfer agreements and all related contracts.
• Advising a major Saudi industrial corporate on asset purchase agreements and stock transfer agreements and all related contracts.
• Advising a petrochemical logistics company on its USD $85 million development of a bulk liquid petrochemical storage and handling business in Jubail.
• Advising a leading Indian business conglomerate on various commercial transactions and regulatory matters in Saudi Arabia and with respect to the Saudi Commercial Agency Law.
• Advising a world leading travel software company on new business structuring and providing general consultation with respect to their agreements and all corporate aspects of their operation in Saudi Arabia.
• Advising a group of Saudi investors on a project to establish medical centres and laboratories across Saudi Arabia.

Contact Our Corporate Practice Group

No matter the complexity of your business setup and structuringrequirements, our legal team has the capabilities and depth to produce results. With offices located in Jeddah, Dammam, and Riyadh, we support domestic and international clients across the Kingdom. Contact us to book a consultation.