AlGhazzawi & Partners

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.

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.

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.

AlGhazzawi 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.

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.

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.

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.

Saudi Arabia has adopted new technology at a rapid pace. From government services to retail purchases and day-to-day communications, the expectations of individuals and businesses relating to technology usage have skyrocketed.
Furthermore, diversification and privatization initiatives in the Kingdom opened the telecommunications sector to private operators, generating new investment opportunities and a great deal of business activity in a previously inaccessible sector.

These rapid changes in technology and communications, coupled with the growing importance of data ownership, privacy, and security, require robust legal support that protects business owners and operators.

Our legal team is very dynamic, regularly participating in global seminars and workshops that address technology matters and legal challenges surrounding the convergence of hardware, data, information technology, internet, telecommunications, and media. We also draw support and knowledge from a vast network of experts in the technology community who greatly enhance the value received by our clients.

We help clients uncover opportunities to commercialize untapped value in their technologies and capitalize on emerging opportunities. We also advise on the legal aspects of data security and privacy, and on contractual issues relating to data management.

Banking & Finance 

Vision 2030 is poised to transform the banking and finance industry, along with many other sectors in the Kingdom. Several large international banks and financial institutions are already expanding their operations here, and recent mega-mergers in the banking sector have made the changes very prominent. As a result, we expect to see a significant impact on debt markets, project financing, and both conventional and Islamic banking.

Emerging Approaches in Fintech and Digital Finance 

Rapid progress in financial technology (fintech) is reforming the banking and finance sector worldwide, and Saudi Arabia is no exception. Digital banking and payment solutions are becoming increasingly prevalent, driven by consumer demand for convenience and efficiency. This shift towards digital finance is opening new avenues for growth and innovation.

AlGhazzawi & Partners are in tune with these developments. We provide expert legal guidance on fintech-related matters, including regulatory compliance, cybersecurity, digital payment systems, blockchain technology, and the integration of artificial intelligence in financial services. Our team ensures that your business can navigate the complexities of the digital finance landscape while seizing new opportunities.

Comprehensive Banking and Finance Legal Services

AlGhazzawi & Partners can help your business make the most of the changing landscape. We have more than 50 years of experience in the Kingdom of Saudi Arabia handling debt finance, banking, and financial transaction matters under both conventional and Islamic law. 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 while concluding transactions with banks and financial institutions.

Navigate Rapidly Evolving Regulations in Banking and Finance

Change and an inviting environment can offer big opportunities in Saudi Arabia. However, taking advantage of those opportunities will require up-to-date knowledge and some adaptation.

Our deep roots in the Kingdom’s banking and finance industry are paired with extensive experience relating to legal entities and structures favored by Islamic banks and Sharia scholars in the Middle East. The combination of knowledge and experience allows us to offer clients practical insights and applications that are compliant with both Sharia practices and the rapidly evolving regulatory environment in the Kingdom. Starting off with the right guidance, thorough analysis, and sound documentation is the best way to avoid future conflicts.

We stay consistently abreast of the changes from both the regulatory and global practice perspectives and put that new information immediately to work for our clients. Should you find yourself in a position of conflict which requires legal support at any time, our team has extensive expertise in Alternative Dispute Resolution (ADR)[Link to ADR page] and litigation[Link to litigation page] to protect your interests.

Business Registration

Setting up Business in Saudi Arabia

Are you considering starting your business in Saudi Arabia?

Whether you are from the United States of America, the United Kingdom, China, Russia, the United Arab Emirates, and other significant and industrial countries in Europe, the Far East, or the Middle East and North Africa region, It’s an exciting time to do business in the Kingdom of Saudi Arabia.   At the same time, it requires the right approach and the most feasible form of setup for making investments.   At AlGhazzawi & Partners, we get things done in the right manner.

With the new opportunities that the kingdom is actively pursuing in line with its Vision 2023 initiative to attract skilled professionals and foreign investors who can contribute to its economic and social transformation, the Saudi Arabian commercial landscape is rapidly changing. . As part of this initiative, the Kingdom has recently revamped its New Companies Law, Premium Residency Program, and a host of other laws and regulations to provide a more appealing and flexible framework.

For over five decades, we have been working with our clients to create strategies for market entry including new business structuring, mergers and acquisitions, franchising/distribution agreements, financing arrangements, Intellectual property protection, taxation, employment, and real estate. The firm had been at the forefront of assisting foreign entities in forging business transactions.

Here are some considerations to guide you through the process

Presence in Saudi Arabia or Delegating Tasks:
Will you be physically present in Saudi Arabia to oversee the procedures, or would you prefer to delegate these tasks to a trusted office? Opting for the latter is often the preferred route for its convenience and ease of doing things.

Enter-to-market Business Strategy:
What’s your business activities plan in Saudi Arabia?

A simple (Zoom meeting) with our specialized team will help us understand your needs.

Under the New Companies Law, there are several options available to foreign investors, each with its nuances: Limited Liability Company, Joint Stock Company, and Simplified Joint Stock Company. These entities require fulfillment of specific criteria and conditions based on their capital structure. It’s crucial to recognize that these prerequisites may differ from similar company types in other countries.

During our meeting, we’ll provide a detailed breakdown of each option tailored to your unique circumstances. We’ll lay out the advantages and disadvantages so you can make an informed decision. Once you’ve made your choice, we’ll prepare the necessary documents for your approval and official ratification.

Prepare for success by aligning your business strategy with the right company structure. With our informed and well-guided approach, we’ll ensure your business is fortified for success in the Saudi Arabian market.

Ministry Approvals and Licenses:
Our team will handle obtaining approvals from the Ministry of Investment, sparing you from any in-person meetings or document submissions. After obtaining the investment license, we’ll assist with incorporation applications, bank account setups, and registrations with different governmental and quasi-governmental agencies.

Sector-specific Licenses:
No matter the industry—be it Financial services, Healthcare, Insurance, Manufacturing, Contracting and Construction, Hospitality and Tourism, Real Estate, Telecommunications, Education, Agriculture, Retailer, or another sector—rest assured, our team will secure all essential licenses from the appropriate authorities.

Furthermore, concerns regarding foreign residency and investment licenses are nothing to fret about. Our team handles these procedures seamlessly, whether it’s the initial application or annual renewals. You can trust us to navigate through any bureaucratic hurdles, ensuring your business operates smoothly and legally in the Kingdom of Saudi Arabia.

Sustainability and Compliance:
Our seasoned team is dedicated to your business’s durability and adherence to regulations. We’ll meet with you bi-annually to ensure compliance with various legal requirements, including the renewal of necessary documents, commercial registration, licenses, and digitalization mandates.

Moreover, we’ll guide you through labor laws, ensuring compliance with national employment requirements and proper maintenance of work contracts. We’ll advise on pitfalls to avoid concerning labor relations, safeguarding your business from potential legal issues.

Financially, we’ll help you maintain meticulous records and prepare final accounts in accordance with generally acceptable accounting standards. From archiving essential documents to submitting financial statements promptly, we’ll ensure your financial practices are above the board.

Additionally, we offer governance services to strengthen your company’s operations and ensure it remains compliant and sustainable in the long run. With our support, you can navigate regulatory landscapes confidently, safeguarding your business’s future success.

Liquidation Planning:
Should you decide to end your business in Saudi Arabia for any reason, our office excels in efficient liquidation processes. With minimal hassles, we’ll handle the necessary legal paperwork, and provide a comprehensive proposal outlining expenses, procedures, timeframe and fees, ensuring a smooth closure.

Throughout the entire journey, from establishment to liquidation, rest assured that you’re in capable and specialized hands who work with full transparency and diligence. Your prosperity and success always remain our top priorities.

Contracts

Contracts are the foundation of law. You might have need of contracts on a wide range of issues, including technology transfer, licensing, intellectual property use, and project financing. It is essential that you ensure they reflect your best interests and are mutually understood by all parties. Strong agreements make business simpler, more productive, and more secure.

AlGhazzawi & Partners has a highly experienced and insightful commercial contracts team that can assist your business in any commercial matter. Our legal practice is fully equipped to draft, review, and advise your team about contracts on major projects, over valuable goods and procurements, and regarding complex legal arrangements. We also have extensive expertise and knowledge surrounding the tradition of contract law in the Kingdom of Saudi Arabia and how that may affect your domestic or international interests.

Experienced Legal Support for Complex Contractual Issues 

Reviewing commercial contracts without knowledgeable and thorough legal help can have catastrophic repercussions for your business. We help clients understand complex arrangements and ensure their interests are well-protected. We have handled large and complex contract challenges for major foreign and domestic clients.

We are a large business law practice that can draw on the specialized expertise of lawyers in every practice area who understand the latest regulations and case law history governing key sectors of the economy (including banking, energy, telecommunication, intellectual property, corporate, maritime, employment law, real estate, and concession rights) and help clients in finalizing fool-proof contracts.

Furthermore, we are widely considered to be leaders in dispute resolution services in the Kingdom, with a deep understanding of all available preventative and active mechanisms that can be applied in the event of contractual disputes, including Alternative Dispute Resolution and litigation. Where required, we meticulously draft mediation and arbitration clauses in contracts and agreements to protect 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.

About Our Contract Practice Group

Our team has over 50 years of experience drafting a wide range of complex contracts including civil works, plants design works, equipment installation and procurement works, project management, turnkey projects, EPC contracts, and contracts that are ancillary to main agreements.

Mergers & Acquisitions 

Offices in Jeddah, Riyadh, and Dammam

Major economic reforms in the Kingdom of Saudi Arabia have brought on an influx of direct foreign investments and a marked increase in merger and acquisition activity. These sensitive transactions demand rigorous due diligence and can attract the attention of Saudi competition and anti-trust agencies looking to prevent monopolistic or oligopolistic practices.

AlGhazzawi & Partners is widely considered to be the leading M&A law firm in Saudi Arabia. With over 50 years of experience focusing on corporate and commercial law, our team has handled some of the largest and most complex M&A transactions in the Kingdom. Whether you are a potential partner, acquirer, or readying your business for sale, our legal team has repeatedly demonstrated its robust business acumen to the advantage of domestic and foreign-owned clients alike across all key market sectors.

Mergers & Acquisitions Help for Domestic and Foreign-Owned Businesses 

The complex ownership structure of many Saudi firms often involving a large number of shareholders and foreign partners, combined with the rapidly changing regulatory environment, pose unique challenges for merger and acquisition transactions in the Kingdom. Such undertakings require a thorough analysis and due diligence from varying perspectives – including a sharp legal lens. In fact, comprehensive legal due diligence requires a team that is not only well-versed with different corporate and regulatory aspects but can draw specialists from other domains of law.

With our Cooperation Agreement with Gowling WLG, we combine our extensive local knowledge with Gowling’s global M&A expertise. This allows us to seamlessly serve our clients on multi-jurisdictional transactions.

Our M&A practice group regularly advises on:

• Legal entities and business structures favored by regulators and banks.
• Drafting and finalization of all transaction documentation from preliminary discussions to closing and post-closing support.
• Competition and anti-trust concerns.
• Compliance with conventional and Sharia law.
• Banking and finance matters including restructuring of debt and other financing facilities.
• Various regulatory, licensing, and permitting issues.
• Compliance with environmental regulations.
• Validation, protection, and transfer of licenses, patents, trademarks and Intellectual Property.
• Employment practices compliance for domestic and foreign staff.
• Search for outstanding court orders and lawsuits.
• Options for binding alternative dispute resolution mechanisms.
• Compliance with industry-specific laws and regulations.
• Compliance with tax regulations.
• Real Estate purchase and/or disposition matters.

And should you find yourself in a position of irreconcilable conflict, our litigation practice group is ready to protect your interests.

About our Mergers & Acquisitions Practice Group 

Our legal team has over five decades of experience advising clients on merger and acquisition matters. We are highly sensitive to the need for confidentiality and urgent action throughout the due diligence and negotiation process. We work closely with our clients’ executive teams and alongside other trusted advisors such as investment banks and accounting consultancies to successfully complete the transaction.

Tax Lawyers in Saudi Arabia 

Offices in Jeddah, Riyadh, and Dammam

Saudi Arabia is a unique tax jurisdiction where companies based in the Kingdom are generally subject to two different tax regimes – Zakat and/or Income Tax – based on the nationality of their owners. Companies are also subject to Value-Added Tax (VAT), real estate tax, customs, and duties, with holding taxes on foreign entities, and must address the issue of double taxation.

With recent reforms and increased use of IT, the Saudi tax authority is aiming to increase compliance with tax laws and regulations, reduce tax evasion, and improve the Kingdom’s alignment with international standards. These reforms include new auditing standards that require greater accountability and requirements to file detailed returns in a timely manner. They also include recent e-invoicing requirements aimed at improving the efficiency and transparency of the filing process for taxpayers.

AlGhazzawi & Partners understands the complexities of the Saudi tax system and how it applies to your unique situation. Sophisticated legal support is essential for you to navigate changes to tax law, regulation, auditing, and filing standards. For over 50 years, our tax practice has assisted clients with domestic and international corporate tax planning, litigation of tax-related cases, , and representation on industry and client-specific issues.

Experienced Legal Support for Complex Tax Challenges

There have been several recent changes to the Saudi tax regime that require careful consideration and special expertise:

• The Saudi Council of Ministers approved the merging of the General Authority of Zakat and Tax (GAZT) and the General Authority of Customs to form the Zakat, Tax and Customs Authority (ZATCA) to bring greater visibility and efficiency to tax compliance.
• ZACTA has published detailed guidelines to increase clarity on Zakat, income tax, and VAT laws and regulations.
• ZATCA has also published e-invoicing requirements and standards that affect VAT invoices, debit notes, and credit notes.
• New requirements and tax rates were published for withholding taxes on payments to foreign entities.
• Establishment of the new Integrated Logistics Zone (ILBZ) as a special economic zone with zero corporate income tax on income earned from specific activities for up to 50 years.
• The signing of the OECD’s Multilateral Convention (MLI) to implement anti-tax treaty abuse BEPS measures and better align with existing double-tax treaties.
• Establishment of the Tax/Zakat Dispute Resolution Committee (DRC) and associated guidelines.
• Intention to address double-taxation on income through a new tax credit mechanism.
• New tax on real estate transaction values regardless of condition, shape, or use at the time of the disposal.
• Increases in the customs duty rates apply to a wide range of products.

As a result of this increasing complexity, all Saudi resident and non-resident companies operating in the Kingdom, regardless of their ownership structure, can depend on our team for continuous and diligent tax advice. We offer sophisticated strategies from corporate tax structuring and planning through to resolving tax disputes with regulators and support during litigation. We can handle charges from regulatory bodies concerning delayed tax filings and the provision of documents for less-than-expected revenues. You can expect full-service legal support for contentious and non-contentious issues. With our expertise and prompt action, we can help you structure your business for maximum tax efficiency and keep you onside with Saudi tax authorities.

With our Cooperation Agreement with Gowling WLG, we combine our extensive local knowledge with Gowlings’ global tax expertise. This allows us to serve our international clients seamlessly and provide them with efficient tax strategies that also address double taxation concerns.

About Our Tax Practice Group

We have handled many complicated tax issues for Saudi, GCC, and foreign clients. Our team has a range of experience with all manner of tax issues including tax planning for M&A, dispositions of business enterprises, capital markets transactions, mixed joint ventures, tax planning for real estate transactions, and resolving complicated disputes between Saudi and non-Saudi partners over tax liabilities.