IFLR 1000
The Guide to the World's Leading Financial Law Firms

The small but wealthy Persian Gulf of Qatar, a country of only 1.7 million people, was a wildcard for the World Cup 2022. But, with it's innovative, environmentally-friendly bid it won in December 2010. Allegations of bribery have ensued and in May 2011 FIFA President Sepp Blatter refused to rule out a revote, but this has not halted the excitement or preparations.

Contractors in the Middle East must have thought their Christmas had come early when Qatar received the award with estimates on spending for new infrastructure, hotels and 12 eco-friendly stadiums ranging from $55 to $100 billion." Obviously 2022 is going to have a huge impact here not only in terms of building the stadiums but also on the huge amount that is going to be spent on infrastructure projects. The estimates range quite widely but about a $100 billion is the figure that's going to be spent," says one lawyer. This generous boon comes as a welcome reprieve for the construction industry in the GCC (Gulf Co-Operation Council) region after Dubai's collapse.

An immediate positive impact on the country has been the resurrection of projects which had been delayed with the Government weary of ploughing reserves in to infrastructure in globally uncertain times. "A lot of the large major projects; the Bahrain Causeway, the subsea tunnel, the rail projects, they were all being put on hold or not pushed through by their government sponsors, while the decision was being made. After winning there is a race to prepare for 2022," says one partner.

Development groups will not be the only ones to prosper from the wealth of new projects. "There's going to be an awful lot of activity, for lawyers as well, over next two years," says one partner. Although, you could not call it an influx, established firms note the legal market is growing more crowded in Doha with multibillion dollar contracts awaiting tender and a dramatic rise in corporate lending expected: "The legal market here is relatively small but it's expanding here in terms of participants. In the last 12 months a number of new entrants are here, Clifford Chance just got their licence, A&O just got theirs over a year ago. There's increased interest in the market because of the growth of Qatar 2022 announcement," observes one partner from a long-standing international firm in the country.

Lawyers are not the only ones looking to gain a foothold in the market. With the anticipation of so much investment, firms note an increase in instructions from foreign investors and companies seeking to either buy shares in Qatari or regional companies or strike up joint ventures. "There are some investors looking in, particularly in the construction firms there's been quite a strong level of interest," says one lawyer.

A further development that will be of interest to investors saw the government introduce a 10% tax on all joint ventures, whereas before it was a sliding scale up to 35%. "It's good that it's a simple and pretty low regime," observes one lawyer.

Outside of the mêlée surrounding football's largest tournament, there has not been an abundance of transactional activity. In the energy sector projects have trailed off, although there are still exceptions such as the $8.6 billion Barzan gas project.

Equity capital markets work has been more bountiful, in the preliminary stages at least. "We're preparing two right now there are three deals in the pipeline, although there may only have been one IPO in Qatar last year there is interest," says one lawyer. Another agrees but says regional unrest has hindered the success of these issues: "We saw a couple of IPOs but they have been put on hold or cancelled, the sentiment isn't right," says the lawyer.

The QFMA (Qatar Financial Market Authority) is doing it's best to stimulate activity, introducing a more formal regime to give protection to issuers. "The QFMA are doing a lot to encourage local companies to list. In November last year [2010] it issued the new listing rules which have set out more clearly the listing for IPOs. The stock exchange brought out a new rulebook," explains one partner. The QFMA has also sold a 20% stake in the exchange to Euronex: "They using their (Euronex's) expertise to enhance the IT and all that jazz," explains one lawyer.

One issue that prevents certain funds from investing on Qatar's exchange is that the country remains under frontier market status, which restricts foreign funds managers from investing in it. This was due for review in June but the decision was delayed until December by index provider MSCI, meaning that the earliest date it could be upgraded is November 2012. Qatar's restrictive foreign ownership rules are the principle issue: "The foreign ownership laws are the main hurdle. At the moment the maximum aggregate share holding is 25%, it is possible to increase that to 49%, but that has been one of the blockers," says one lawyer.

Another major development is the Qatar Central Banks (QCB) decision to demand conventional institutions desist in all Islamic operations by the end of 2011. "There were various reasons given; difficulty in calculating balance requirements and regulatory balance sheets. That caused a bit of a kerfuffle at the time," explains one lawyer. Others regard the decision by the QCB as an attempt to consolidate in the overbanked country, which currently has 18 and an opportunity to deal with distressed assets that several hold before they cause issues. "It is a chance to merge operations and it's a nice way to deal with some of less shining examples of investments that are still on the balance sheets of some of the banks," says one lawyer.

Conventional banks are left with few options: sell; rundown existing operations; or, convert Islamic products to conventional. "The Islamic banks are all looking for opportunities to acquire that business. There is legal work but it's not a huge bonanza that we thought it would be I think quite a few are letting their business run off and getting people to convert," says one lawyer.

On the corporate side the expected increase in activity the $3.3 billion merger of two Qatari shipping companies in June 2010 was expected to instigate never materialised. "There was the proposed Alkalgie bank and International Bank of Qatar but it was announced that deal would not proceed because the parties could not agree on valuation," says one partner. The regional turmoil is cited as the principle dampener of M&A activity and lawyers say that prior to February Qatari's were showing interest internally and in the wider region. "On the outbound side, at beginning of the year there was quite a lot of interest. Qataris were looking at regional deals and as far as Asia and the States but the last couple of months they seem to of been skittish."

One of the leading local firms on the Qatari market, Hassan Al Khater Law Office was named Qatari Law Firm of the Year at the annual IFLR Middle East Awards, for the second time in four years, in October 2010. Market feedback supports the firm's accolade, with it receiving positive affirmation from peers. "It's one of the firms that has been here a long time and a lot of foreign law firms refer to when they need core local work doing," says one. Another agrees: "They are one of the preeminent firms in Qatar."

Despite its history and solid reputation, however, some competitors feel the firm, like most local offerings, has suffered with the increase in competition for mandates from international practices launching in Qatar. Although it has certainly not been the firm's most active 12 months it secured roles in two large transactions with partner John Whattnal leading the team on both deals. The most recent deal saw the firm take a role in the first sukuk (Islamic bond) issued by a Qatari financial institution. Qatar International Bank's debut offering, which was oversubscribed by $6 billion, raised it $750 million. The firm acted for the issue managers, HSBC, Credit Suisse and QInvest, of the transaction, which closed in October 2010.

More recently, the firm advised a banking consortium, which will provide the $1 billion financing for developer Northgate Company,to build Qatar's biggest shopping centre. The deal reached financial close in December 2010.

Latham & Watkins may have only launched in the country three years ago, but it has deep roots dating back almost 20 years and relationships cemented with several highly reputable clients, as one peer observes: "They have, historically, a very good client base in Qatar in the form of Qatar Petroleum and the Qatar government."

Commentators remark, however, that the New York and London office handle all the mandates engendered by these two clients. Although none of the firm's recent highlights have been on the behalf of this pair, which demonstrates that the firm has expanded its client portfolio since the inception of its Doha office.

Small criticisms aside, perception of the firm is unanimously positive and no one denies it merits a place within the top tier. "They are a good firm and we often come across them and it is good to have them on the other side," says one rival lawyer.

Clients note that the firm doesn't have the grounding in local law of some of its longer-standing international rivals but insist Latham's produces work the highest calibre. "What you get with them is very good advice. Technically they are excellent," says one.

The corporate arena produced a standout deal for the firm as it acted on the largest and first announced, merger of two public Qatari companies in May 2010. A team from the Dubai and Doha offices, including Andrew Macklin and Craig Stoehr, advised HSBC and the steering committee in regard to the structuring and implementation of the merger between two shipping companies, Qatar Navigation and Qatar Shipping Company.

Islamic finance has proven the other active area for the firm and another first time deal saw it advise Qatar National Bank on its debut capital markets offering. Stoehr took the lead on the $1.5 billion bond, which closed in November 2010.

Another domestic institution, Qatar Islamic Bank, has kept Olivier Vermeulen occupied and he has advised it on several Islamic finance deals which in total exceed $1 billion in value.

The first foreigner to establish a law firm in the country, the eponymous Lebanese founder and managing partner of the Law Office of Gebran Majdalany has since been granted Qatari citizenship and is described as the "doyen of Qatari law." Unencumbered by his advanced years, Majdalany is still active in the market: "He's 81 years old and he still goes in to the office every day," says one peer. The reaction to Majdalany is divided. Rather than seeing it as an admirable quality, several commentators feel Majdalany might not be the lawyer he once was: "He's been around for a long time, some say he's a bit long in the tooth," says one rival.

Several commentators observe the firm is still capable of providing first class advice, however: "They have a good reputation and a good name and they provide a good service," is one peer's summary. With roles in mandates significant enough to verify this, the firm retains its top-tier rank.

Islamic finance has been the most active sector for the firm and it has advised on two multibillion transactions in the last 12 months. Sharon Coutinho advised Barwa Bank on issuing a $2 billion murabaha (deferred sale) facility in June 2010, while Rejinah Arokiasamy acted for Barclays on refinancing an existing agreement in the same amount for the government.

Further transactions saw the two lawyers collaborate, advising on a $1 billion ijara (leasing) facility agreement and a $500 million bond issue by a Qatari insurance company, in deals which closed in December and November 2010, respectively.

Simmons & Simmons continues to be regarded as one of the leading and most prominent international law firms in the country. "They are one of the most active of the international law firms," says one peer, while another agrees: "If you are talking tier one international firms, I would certainly say Simmons & Simmons."

Andrew Wingfield and Samer Eido can claim a large degree of responsibility for the firm's standing in the market with clients and competitors singing the pairs praises. Banking and finance practice head Eido is appreciated for his excellent grounding in the region by clients: "He is very responsive, he gets back to us within hours," says one, adding: "He understands the country and has an excellent knowledge in local law." Of Wingfield one peer says: "Andrew has been around for some time and he is a very good lawyer."

The firm's corporate practice is headed by Wingfield who was active in an ongoing deal advising the listed, Qatari Al Khalij Commercial Bank on the proposed merger with a local private bank, The International Bank of Qatar. The deal was postponed in July 2011 over disagreements on pricing.

In the Islamic finance sector, Eido advised the Commercial Bank of Qatar on negotiating, drafting and finalising an unsecured $274 million murabaha (deferred sale) financing to Barwa Real Estate Company, which closed in July 2010.

A further deal saw the practice head lead on advising Bawabat Al Shamal's on the sale of $150 million of it's shares to Dubai-based Al Futtaim in September 2010.

Advocate Mohammed Al Marri/Al Tamimi & Co has seen a high degree of staff turnover in the last 12 months. The frim expanded its presence appointing Jay Fortin, who was previously with Patton Boggs, practice head in addition to hiring partner Sami Fakhoury. The firm also promoted Stefan Jury to the partnership in January 2011. But the firm suffered a blow when partner Ahmad Anani moved to Latham & Watkins in August 2010.

Regarded favourably by the market, peers consider the firm a capable practice and a solid tier two contender and clients feel similarly. "They are decent lawyers, they have a good reputation in the market and I wouldn't hesitate to use them as and when I needed local advice," says one.

The firm had a role in the largest corporate deal in Qatar in 2010, acting as local council for Latham & Watkins on the $9 billion merger between Qatar Navigation and Qatar Shipping, which was the largest ever merger between two of the country's listed companies.

In the Islamic finance sector, the firm led by the newly made, Jury, advised Qatar Islamic Bank on structuring it's $750 million sukuk (Islamic bond) which closed in October 2010. It was the first issue of it's kind by a Qatari institution.

For competitors the Arab Law Bureau is synonymous with practice head Alaa Hamad, who is well liked and respected within the market. "The firm is run by this chap Alla, a very nice guy and a good lawyer," says one.

The firm says it's seen a drop off in mandates over the last 12 months but it has still secured several significant roles. Hamad, Rad Eltreki and Sean Khalid advised Qatar Gas on maintaining consolidated sharing arrangements for LNG (liquefied natural gas) infrastructure between Qatargas and Ras Gas in a deal which closed in October 2010.

On the finance side, Hamad has been advising Standard Chartered on various financings to Qatari companies.

With a presence in the Qatar Financial Centre and a relationship with local firm, Sami Abu Shaikha, which enables it to practice court work, Eversheds has all the bases covered. Several international counterparts say the firm lacks visibility but clients attest it is active, a good office to turn to and more reasonable than its English counterparts. "I like Eversheds, they're a good firm. They always give solid advice. Eversheds are a little bit better on price compared to magic circle firms," says one. Another client says the firm's superior longevity gives it added value: "What distinguishes them from the other international firms is that they've been here for longer and they tend to have a better feel for local advice."

Of the firm's lawyers, clients single out practice head Amjad Hussain. "He's very, very good; pragmatic and commercial, he really understands the issues so it's not just a legal view that we get from him." Clients also stress the firm are reliably available: "Even when the partners are on holiday we don't have a problem in reaching them," says one.

Hussain is not the type of senior figure to take a back seat and has led the negotiations on the firm's notable recent work, which is all ongoing and involves advising on Islamic aspects of the deal. The firm is advising GBI, a company set up in 2008, in connection with its GBI Cable System submarine telecommunications project in the Gulf region and with international connectivity to Europe and India through one integrated cable system. Hussain has been offering advice on shariah compliant financing and creating security for the project.

The firm QAG have also been hired to provide counsel on shariah compliant financing options for establishing an automotive manufacturing division, including a research and development facility, in Qatar.

In a further transaction a team led by Hussain is advising a regional investment company on the €3 billion acquisition of predominantly shariah compliant investments in Europe.

A Qatari Islamic bank has also mandated the firm to assist in acquiring three Islamic operations from conventional banks, following the Qatar National Banks decision to ban foreign institutions from providing Islamic options.

A veteran of the Qatari market, Patton Boggs boast the accolade of being the longest established American firm in the country. The firm has other credentials too, namely leading lawyer Robert Hager who is respected by peers as an experienced practitioner and valued by clients for his depth of knowledge in all matters legal. "Fantastic. He's very up on current affairs in the legal world and he gets the job done." Others value his commitment and state he makes himself permanently available. "His responsiveness is excellent; he is always on the clock," is one client's reference.

Peers observe that the firm has a good relationship with the government. An example of this saw Hager acting for the not-for-profit Qatar Development Bank in creating it's new indirect lending programme to support SME (samll and medium enterprise) development in Qatar, which is the first plan of its kind in the country.

On the corporate side, Hager represented Qatari Diar Real Estate company in the negotiation and establishment of a joint venture with DBI (Deustche Bahn International) to develop Qatar's Integrated Railway Network in November 2010. The network, which will encompass high speed lines, an underground metro and freight lines, will connect Qatar to Bahrain, and is expected to cost in excess of $20 billion.

In the finance sector, Hager led a team advising Barwa Real Estate company on the sale, development and fit-out for the Barwa Financial District project, which comprises nine commercial towers and a hotel, and closed in November 2010.

On the Islamic side an ongoing deal sees the firm advising on a shariah compliant, multi-billion Riyal financing of a prominent real estate development.

Led by Christopher Tingley, Sayel M Daher Law Offices draws a mixed response from peers with several questioning what deals it has acted on. The firm specialise in oil and gas projects, an area that has slowed down in Qatar, explaining lawyers observations. Nevertheless, the firm has acted for the lenders on four deals including two petrochemical projects valued at $700 million and $1.7 billion.

Relative newcomers Allen & Overy, who launched in February 2010, have had an immediate impact on the market and wasted no time in accumulating a substantial market share. Commentators feel the firm is a genuine contender, with all insisting it is deserving of a place in the rankings and makes its debut in the third tier. "They are new in the area but they are very active," says one peer, adding: "When we are involved with Allen & Overy we are dealing with high quality output and lawyers who know what they are doing and we expect to see them on major deals." Rivals also say, however, that currently the firm has a relatively small team and is only active on international deals. Clients also say the firm needs to gain experience in Qatari law, but in terms of financial advice they say it excels: "If we're doing something that is very heavy, complex finance we will go with A&O. Sometimes they give you advice which is more English law as opposed to fully understanding the requirement of the local law which can be important," observes one.

Partners from the firm's Middle East offices in UAE and Saudi Arabia are involved in deals, but managing partner Robert Porter and corporate practice head, Chris Thornes, are the two permanent fixtures in the Doha office.

Testament to the firm's efforts in the country can be seen in the size of the deals it has been involved on. The firm advised the joint lead managers; QInvest, Credit Suisse and HSBC, and the National Bank of Abu Dhabi on the $750 million sukuk issued by Qatar Islamic Bank (QIB), the first international sukuk issuance by QIB and the debut by a domestic financial institution.

In terms of size, a highlight for the firm saw it advise the export credit agencies in relation to the $10 billion Barzan gas project sponsored by Qatar Petroleum and Exxonmobil Qatar.

An additional debt capital markets deal saw the firm act on behalf of Qatar Holding and the Qatar Investment Authority in regard to a $1.7 billion and C2.5 billion ($3 billion) bonds held by it and issued by Credit Suisse in a convertible bond.

Badri & Salim El Meouchi is a number of the international firm's choice when seeking local council and several regard managing partner Chadia El Meouchi as the reason behind this decision. "She's a good lawyer and qualified in the US, which is helpful," explains one.

El Meouchi has led a team form the firm on its deal highlights, which have come in the corporate sector. Acting as Qatari counsel, the firm advised Alaqaria in its $3 billion take-over by Barwa. The deal between the two listed real-estate companies closed in January 2011.

In another role as Qatari counsel the firm advised IBQ and Al Khaleej Commercial Bank on a merger which is taking place in the form of a share swap.

A further M&A deal sees El Meouchi advising a leading GCC (Gulf Co-Operation Council) hospitality developer in the acquisition of shareholding in an international hotel chain.

Local competitors single out Sultan Al-Abdulla & Partners as a strong firm and feel it certainly warrants a place in the rankings: "It's a good law firm I would expect them in the rankings. They operate in English and they are active," says one rival lawyer.

A deal highlight for the firm saw it act on the restructuring of a $200 million musharaka (Islamic contract) facility arrangement for the development of an energy project in Qatar by a syndicate of international banks and financial institutions.

An ongoing transaction also sees the firm acting for a local media company on the $250 million merger with another similar business.

Al-Ansari & Associates is considered a good local player by several of its rivals who say it is a firm with capable bilingual lawyers.

Led by name partner Salman A Al-Ansari the firm has been active in the corporate sectors. A team from the firm is advising two Middle Eastern banks on their merger, which was postponed  in July 2011. In a similar role a team led by Al-Ansari acted for a financial entity on the acquisition of a major petroleum company in 2011.

In another ongoing role the firm has been acting as local counsel to a financial services firm, which is attempting to establish a joint venture with a local company.

The latest international firm to be granted licence to practice in the QFC (Qatar Financial Centre), Clifford Chance had it's application approved in April 2011. The firm have been active in Doha since the 1980's but it is unlikely to be a coincidence that the firm's recent move coincides with the country winning the World Cup bid, which is set to engender a number of multibillion dollar projects.

The new QFC office will be headed by project specialist Richard Parris, currently a partner in the Firm's Dubai office, and Greg Englefield, who has previously spent two years on secondment at a local Qatari law firm.

Swtizerland based, Lalive, have been operating in the country since 2006. On the corporate side the firm recently advised a Qatari company in relation to the takeover of a French publicly listed company. In another deal with a cross-border element the firm is acting for a group of investors from the Middle East in relation to the setting up of an Islamic bank in Switzerland.

A further continuing project sees the firm advising Qatar Solar Technologies (QSTec) on the setting up of an international $700 million joint venture project for the construction of a greenfield polysilicon and ingot production plant in Qatar.