In this UAE Managing Partner Report with LexisNexis with the support of Abu Dhabi Global Market (ADGM), Sadiq Jafar, Managing Partner, UAE discusses the positive growth and optimism in the UAE legal market. Find out more below:
WHAT IS NEW WITH YOUR FIRM AND WHAT ARE YOUR PLANS FOR 2023?
Hadef & Partners has continued to progress over the past year. We have grown the lawyer headcount in many of our practice areas. We have also strengthened our support services and infrastructure, including appointing our first Chief Operating Officer. At all levels, we are committed to growth and development, focusing on our people internally and our clients externally. We have introduced a range of policies and procedures, which will improve our efficiency and productivity, as well as nurture and motivate our human capital. We are proud of our ability to attract, develop and retain top legal talent.
During 2023, we aim to further enhance our market positioning and brand as an elite UAE law firm. Our Marketing and Business Development team will support our partners and associates in implementing creative initiatives to achieve our objectives, and to ensure our clients continue to receive the highest standards of service.
As a full-service UAE law firm, we aim to continue our robust growth and to introduce new practice areas as required to service the dynamic and ever-developing nature of the UAE market. Most recently, we have been building out our tax capability in order to service market needs for the introduction of Corporate Tax in the UAE.
WHICH PRACTICE AREAS DO YOU SEE GROWING IN 2023? WHAT ARE THE DRIVERS BEHIND THAT?
We expect to experience continued growth in our contentious teams, driven by disputes in a range of sectors.
As the UAE economy continues to develop and diversify, practices related to corporate structuring and restructuring, investment, funding, M&A, PPP and IPOs will continue to grow.
Various technological and commercial areas and sectors are also doing well, ranging from FinTech to entertainment. Meanwhile, transportation, logistics, tourism, healthcare and education also continuing to be important and active sectors.
Laws and regulations on data protection, and issues related to cyber security, are leading to increased demand for advice in those areas.
While laws and regulations related to FDI, immigration and employment continue to be introduced and developed, meaning that the related practice areas grow too. Following a slight decrease during the COVID 19 years, infrastructure and real estate development is increasing once again, bolstered by increases in the resident population and enhanced valuations in the property market.
WHAT DISPUTES / LITIGATION TRENDS HAVE YOU OBSERVED IN 2022, PARTICULARLY WHEN COMPARED TO LAST YEAR?
Coordinated expertise in restructuring, insolvency and litigation is required to advise and act successfully in large and complex cases.
We expect increased investigations (in areas such as corporate and regulatory) and business crime litigation, driven by globalisation, regulation, digitalisation and cyber activity, together with the continued governmental drive to achieve greater effectiveness in combatting money-laundering and other illicit dealings. Construction disputes have re-emerged as an area of engagement, in which we expect growth. Due to the enhanced liquidity and appetite for risk, unresolved disputes that had been suspended are being reactivated.
The drive by the UAE Courts to accelerate the judicial process has resulted in litigation lawyers often facing short time-frames to submit pleadings and related documentation. This inevitably ratchets up the pressure and only the best resourced firms can perform. In many cases, clients may be considered to be winners as proceedings conclude in a shortened period. Of course, this trend has also had its challenges, particularly during the teething phase.
Therefore, Litigation departments need to have strength in depth in order to meet increased demands. The availability of Payment Orders has also increased the range of options in certain cases. Strategies for enforcement and recovery are critical and are evolving rapidly.
WHAT ARE THE KEY FORTHCOMING UAE LEGISLATIVE CHANGES YOU ANTICIPATE OR HOPE FOR IN 2023?
The Government continues to pursue initiatives to enable a successful and cosmopolitan business community, and is committed to continued national success. Legislative and regulatory initiatives have continued to emerge and affect the entire business spectrum and all areas of legal practice.
Most lawyers would agree that the key legislative change in 2023 will be Corporate Tax. We anticipate significant demand from clients who need to assess how this affects their business. Extensive corporate and commercial structuring will be required by businesses both before and after implementation of the law.
After the primary legislation and implementing regulations take effect, UAE related transactions will need to be designed and documented to optimise for tax. New structures and warranties will emerge. Certain practice areas, such as projects, real estate and M&A, may be affected more than others as this new law takes effect.
Following the implementation of the new UAE Labour Law, which represented the most comprehensive change to the country’s employment regime since 1980, new employment contracts will need to be prepared by most private sector entities. These changes must take place by 1 February 2023.
WHAT GLOBAL DEVELOPMENTS ARE CURRENTLY HAVING THE MOST IMPACT ON THE WORK OR STRUCTURE OF YOUR FIRM? (E.G. ENERGY PRICES, SANCTIONS, TECHNOLOGY ETC.)
Healthy oil and gas prices underpin domestic and regional liquidity and have enhanced general business confidence in the region. This has had the consequence of increasing demand for legal services.
Ongoing economic, political and legal developments regionally and globally are helping to attract businesses and Ultra high net worth individuals to the UAE.
Furthermore, the UAE is increasingly viewed as an optimal destination to base hubs for regional reach into the Gulf and wider Middle East, and Africa and parts of Asia. The ongoing, enhanced global emphasis on ESG is important, both internally and externally.
The UAE’s stature as a significant technology hub also continues to grow and accelerated with borders reopening the early COVID period and entrepreneurs being encouraged to establish and expand their businesses in all Emirates, particularly Abu Dhabi and Dubai. The UAE continues to focus on enhanced AML and related regimes in order to demonstrate effective observance of international standards to the global community.
The level of scrutiny applied to law firms as Designated Non-Financial Businesses and Professions is rigorous. All law firms operating in the UAE must address risk proportionality and transparency, and continually invest in their governance and compliance infrastructure.
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