Rapid growth in the Saudi legal sector
The second Gulf Law and Arbitration Week, held in Manama, highlighted the tremendous developments in the Saudi Arabian legal market, estimated at between $6 billion and $8 billion. This growth is a major outcome of the Kingdom's comprehensive economic and legislative reforms, which aim to create an attractive investment environment aligned with global best practices.
Historical context: Vision 2030 as a key driver of change
This transformation cannot be understood in isolation from Saudi Vision 2030, an ambitious roadmap for diversifying the economy and reducing dependence on oil. This vision necessitated a radical overhaul of the legislative and legal infrastructure to attract foreign direct investment and facilitate business operations. Reforms included developing the judicial system, strengthening commercial dispute resolution mechanisms, and modernizing corporate and investment laws, leading to increased demand for specialized legal services and contributing to unprecedented market expansion.
Artificial intelligence: A technological revolution in the legal profession
Technology expert Mohammed Al-Saloumi emphasized the pivotal role of technology in this growth, noting that 79% of lawyers worldwide utilize artificial intelligence (AI) tools in their daily work. In the Kingdom, the adoption of legal technology (LegalTech) is accelerating remarkably, with the global market expected to soon exceed $50 billion. AI is used in contract analysis, conducting complex legal research, and managing cases more efficiently, saving time and effort and reducing the margin of human error. Furthermore, the Al-Ahsa Arbitration Center announced the launch of an electronic arbitration platform that leverages AI to streamline procedures and facilitate access to information, thereby enhancing the transparency and speed of arbitration processes.
Women's empowerment: A bright face of the legal sector
The increasing role of women in the legal sector is one of the most prominent features of this development. Following the granting of the first female lawyer's license in 2013, the sector witnessed a significant leap forward, with the number of licensed female lawyers reaching 3,416 in 2023, a 21.4% increase compared to 2016. Lawyer Dr. Khulood Al-Ghamdi noted that women are no longer limited to practicing law, but have become active partners in establishing law firms and holding leadership positions in the legal departments of companies and the Ministry of Justice. This strong presence reflects the success of policies aimed at empowering women and increasing their participation in the labor market, a key objective of Vision 2030.
Developing arbitration mechanisms to enhance investor confidence
To ensure a stable business environment, the Kingdom has prioritized the development of commercial arbitration as an effective and rapid alternative for dispute resolution. Dr. Ali Al-Mashnawi, Chairman of the Standing Committee for Arbitration Centers, explained that the committee oversees the issuance of licenses to specialized centers, such as those for real estate and engineering arbitration. The Saudi Center for Real Estate Arbitration, which has received thousands of cases since 2019, aims to resolve disputes before they reach the courts. The existence of modern arbitration mechanisms aligned with international standards sends a reassuring message to local and international investors and underscores the Kingdom's commitment to protecting rights and providing a secure investment climate.
Importance and future impact
The rapid growth of the Saudi legal market, driven by technology, women's empowerment, and legislative reforms, has profound implications that extend far beyond the Kingdom's borders. Domestically, it strengthens the rule of law and enhances the efficiency of the justice system. Regionally, it positions the Kingdom as a leading center for legal services and arbitration in the Middle East. Internationally, it increases Saudi Arabia's attractiveness as a destination for global investment, directly contributing to the achievement of the Sustainable Development Goals of Vision 2030.
