Allen & Overy considers future in Saudi as local firm deal ends
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Allen & Overy (A&O) is mulling its future in Saudi Arabia as its contract with local sponsor Abdulaziz AlGasim expires.
A&O is currently tied up with Riyadh firm Abdulaziz AlGasim Law Firm, in line with local law which demands that western firms opening in Saudi Arabia have an association with a local firm.
The association was launched in 2007 as part of a five-year deal (11 May 2007).
That contract expired yesterday (18 June). The two firms have now entered into an automatic one-year roll-over period. The A&O spokesman also added that the firm was now speaking with Abdulaziz AlGasim about whether to continue the association but that no timeline has been put on the two parties reaching an agreement.
A&O’s spokesperson added that the firm was committed to Saudi Arabia and was not considering pulling out of the Kingdom. The spokesperson also added that A&O was not talking to any other potential sponsor firms at present.
When A&O first opened in Saudi Arabia, it parachuted in banking and finance partner Julian Johansen, who remains in the Riyadh office now.
Johansen has since been joined by corporate structured finance partner Johannes Bruski, while the firm also hired a local partner from Abdulaziz AlGasim in 2010 (4 August 2010).
Readers' comments (7)
Anonymous | 19-Jun-2012 1:59 pm
This is an attempt at damage limitation by A&O. The rumour in the Saudi market is that the break up was far from friendly and involved the intervention of SAGIA. It is expected that Zeyad Khoshaim will be the “Saudi partner” for A&O going forward.
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The Saudi Businessman | 19-Jun-2012 3:11 pm
No surprise. From what I hear, A&O's sponsor (like most Saudi sponsors) is as mad as a hatter.
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Mr Mellow | 21-Jun-2012 9:23 am
I hear it is proposed that there be an orderly transition to a new arrangement with Khoshaim as the new Saudi sponsor.
It is hardly in the category of the White & Case episode a couple of years ago.
Saudi Arabia is a moveable feast in any regard so it is hardly worth getting excited about.
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Anonymous | 21-Jun-2012 5:53 pm
Saudi sponsors are a total nightmare. Much better to grab some random lawyer working above a kebab shop on Olaya Street and pay him to disappear and let you get on with it, than to engage some of the more delusional types that tout themselves about.
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Anonymous | 26-Jun-2012 7:35 am
The two firms are mutually fantastic. A shame. This was 'the association' for the Kingdom. Expert local lawyers alongside experienced international partners
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Anonymous | 27-Jun-2012 7:46 pm
So they will be forced to co-habit for another year. A&O's plans have to be put hold for the time being.
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Anonymous | 22-Jul-2012 2:19 pm
Khoshaim was the future of the practice of law in KSA - his time has now come.
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