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

The kingdom was not directly disrupted by the unrest that blighted the region in 2011 but it intervened in Bahrain, sending troops to avoid any possibility of the protests spreading to its soil. After all, Saudi has issues of it's own, with unemployment, which is said to be as high as 40 % among people ages 15 to 24, a lack of affordable housing and no mortgage law the country's chief concerns.

Pre-emptively, the Royal family pledged oil money to its citizens after the initial trouble erupted. State employees were given 15% pay rises and the king ordered that SR40 billion ($10.7 billion) be pumped into the country's development fund, which provides interest-free loans to Saudis who want to build homes, get married or start small businesses.

With no law governing mortgages, however, the country has a very low level of house ownership. A law has long been rumoured but never made it past the council of ministers. "I've heard various things; from it will get there, to it's still a talking shop. They need to do it but they are really struggling with it conceptually because mortgages are debt, debt equals interest and interest is a bad thing," says one partner. After five years of delays, however, the banks say it could be implemented by 2012, stimulating $32 billion of lending.

Never as over-leveraged as its Gulf neighbours, the country was relatively unaffected by the crisis, but it saw defaults, which stemmed the flow of easy cash for corporates and projects. Lawyers feel they are through the bulk of the restructuring work now and say with banks – which are some of the most liquid in the region – needing to turn profits, the market is becoming active again. "We see much less restructuring and more lending. Late 2009 and early 2010 there was very little lending but 2011 we're really seeing a lot. Banks are under pressure to leverage their assets and make money," says one finance partner. "Banks are going back extending short, medium and long term facilities to corporate borrowers. They are looking at financing real estate projects, they are looking at financing jumbo corporate purposes and they are looking at financing projects on a project finance basis."

The country has witnessed a resurgence of multi-billion projects but only the reliable borrowers are securing finance. "There seems to be a lot of activity, but since credit crunch the banks have taken a harder look at where they are putting their money and only the best ones are coming to market," says one lawyer. Syndicate deals are also becoming the norm: "The re-emergence of the big project and the re-emergence of the co-financings, ie, tapping in to lots of different funding sources is definitely a trend."

The shift towards Islamic finance the country has witnessed in the last few years has become a land-slide, with what was predicted a trend becoming common practice. "There's almost always an Islamic tranche. It's very rare to get a conventional deal on the Saudi market," comments one lawyer. Driven by necessity rather than choice, the propensity towards an Islamic option is instigated by the greater liquidity in local institutions. "It's simple, the Saudi banks have all the money," explains one lawyer. "One of my contacts at the banks rings me up every few years, extremely excited, saying: 'We've got a plain vanilla deal."

There is a genuine push towards privatisation and diversification from oil and gas as the Saudi Royal family plans for the future. The Ma'aden Aluminium plant and rolling Mill project is a prime example: "Ma'aden is a state company which was to a certain extent on the stock exchange so that is part of the government strategy to become less reliant on oil and gas and also introducing the public in on these investments as a passive investor," says one lawyer. Although the country saw the financial close of the $14 billion Jubail Oil Refinery in 2010, the petro chemical side has been quiet. "There's not been that many oil and gas petro-chemical deals in the last year because they haven't awarded any gas allocation letters so what you're seeing is more activity in the secondary downstream sector," says one lawyer. Infrastructure is also high on the agenda with the Medina airport expansion expected to be structured using project finance. The SR30 billion ($8 billion) Knowledge Economic City project, which it is estimated will create more than 20,000 jobs and accommodate over 150,000 people once completed, is also progressing.

A handful or capital increases and private placements aside both the debt and equity capital markets work have been quiet and the protests have by no means increased surety for foreign investors. "It's still in a holding pattern, the Saudi stock exchange is up and down, oil prices are up and down and the Middle Eastern stability is causing a little caution on behalf of investors and not just in Saudi Arabia but the greater area," says one practice head.

The sukuk (Islamic bond) market is slow with corporates turning to financial institutions for the easiest and cheapest way to secure debt rather than enduring the country's laborious listing process. "On the debt capital markets the issuers are recognising that public issuances are expensive and time consuming," explains one lawyer. In a bid to stimulate activity and encourage listings, the CMA is now allowing issuers to place sukuk's privately for the first time. "The process is much easier, simpler and quicker for debt issuers," explains one lawyer.

There is, however, a more noticeable upturn in the equity market: "We are seeing some movement with rights issues and capital increases," observes one lawyer. Another agrees: "We've seen an uptick, we are currently working on four IPOS and a rights offering. My understanding is that the CMA (Capital Markets Association) has a backlog of issues that it has and it wants to get through in it's own time."

To counteract the difficult market and encourage investors, funds are being established in Saudi Arabia. "We're seeing some movement in the market to use contractually based funds. These are structured under the capital markets regime to establish investment funds," explains one lawyer. "We're seeing some appetite from banks in these investment funds, the reason being, flexibility of managing the funds and speed of setting up the funds and relative ease of approaching the CMA or investors."

On the regulatory side, the CMA has issued the consultation new listing rules. "Hopefully it makes the process more transparent and easier for the issuer," explains one lawyer. Dissatisfied with the prospectuses being drafted, the authority is taking a more cautious approach to new issues, which demand a more thorough approach. "The CMA is increasingly trying to influence the quality of due diligence exercises for new capital markets issuances. They told us they will not tolerate the practises of some firms and that may actually mean they influence issuer's choice of firm," says one capital markets practise head. The CMA is also proposing higher capital requirements and stricter corporate governance.

Never Saudi Arabia's most active area, M&A has been quiet. Despite there being plenty of liquidity and readily available acquisition finance, assets values are low. "The prices have dropped from the highs of 2008 and the sellers are still looking for those astronomical numbers they could of achieved three years ago," says one M&A lawyer.

Where lawyers note activity is in joint ventures. "We are seeing a lot of foreign investors coming to the kingdom and setting up with Saudi companies." Given the country's foreign ownership restrictions, this is often the preferred option of outsiders entering the market. The sectors which have seen most interest are healthcare, insurance and manufacturing, all areas where the royal family has pledged to invest.

Competitors' principal grievance with Allen & Overy is that lawyers from the Dubai office regularly lead on transactions, with several peers claiming the firm has secured its ranking by virtue of their efforts. Although the two practices collaborate especially on projects, from a client's perspective this regional network is a virtue.

The Riyadh offering also has plenty of excellent credentials of its own, namely in the form of its partners. The US and Saudi qualified, Zeyad Khoshaim, is a clear client favourite, who is valued for his expertise and solid grounding in the capital markets arena: "He is very knowledgeable about the CMA (Capital Markets Association). He has very good client management skills."

Clients' perspective of the firm affirms its ranking: "Overall we have very positive feedback on the firm. The team showed, at the same time, professionalism and flexibility," says one. While another remarks: "They accommodated our requests and they hear any concerns and focus on areas we want them to."

In the capital markets sector, the firm's equity work is pending and confidential but clients affirm the practice is active on several IPOs and say the firm is extremely capable in this capacity. "They know about the recent spoken and unspoken rules about the CMA when it comes to legal conditions for disclosure. In the IPO market we are going in to a very volatile market and the CMA is looking more and more at restrictions in the due diligence so this is very important," explains one. Lawyers agree: "They've grown in that area 100% and they are doing vast amounts of work," says one.

On the debt side the firm has been advising Barclays, UBS, Morgan Stanley, BNP Paribas, SAIB, Lazard, and JPMorgan on a variety of regulatory issues, including compliance with authorised regulations.

The firm's strongest practice, banking and finance, has been its most active. A team acted on behalf of the lead arrangers: Samba Financial Group, The Saudi British Bank, The National Commercial Bank and Banque Saudi Fransi, in relation to the SR5 billion ($1.3 billion) 15-year murabaha (deferred sale) financing facility for Saudi Electricity Company. In an identical capacity, for HSBC, the firm advised a $435 million SACE-backed facility for Saudi Basic Industries Corporation's Hadeed Steel Plant and, Riyad Bank and Banque Saudi Fransi on the SR2.1 billion multi-tranche Islamic financing for Arcelor Mittal Tubular Products Jubail Company.

The firm also secured a role on the prize project finance deal in the region which, since closing, has received several accolades. Dubai partner Bimal Desai led the deal advising Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture between Saudi Aramco and Total, on the $14.2 billion Jubail Refinery and Petrochemical Project for the development of a greenfield refining and petrochemical plant. The financing involved 19 different facilities with seven export credit agencies and two different Islamic facilities and the total debt raised was approximately $8.5 billion

The corporate practice has also been active for SATORP providing advice on all its corporate and contract work, including structuring and negotiating various multimillion dollar long-term off take arrangements and construction claims.

Established in 2009, Al Yaqoub Attorneys & Legal Advisers in association with Hogan Lovells has offices in Riyadh and Jeddah. Head of Islamic finance Rahail Ali and recently head of the Hogan Lovells Saudi offering Imran Mufti, who was promoted to partner in May 2010, represent Lovells' leading figures in the Kingdom. Montasir Al Mohammed is managing partner of Al Yaqoub Attorneys & Legal Advisors.

On the debt side of capital markets, the firm acted as counsel to Crédit Agricole as coordinator and Calyon Saudi Fransi, GIB Financial Services, HSBC Saudi Arabia and Samba Capital and Investment Management Company as joint lead managers and joint book runners on the SR2 billion ($533 million) bond offering from the Arab Petroleum Investments Corporation (APICORP) in October 2010

In Islamic finance work the association advised Samba Financial Group and HSBC Bahrain on a seven-year $280 million shariah-complaint financing facility with Saudi Telecom Co for its subsidiary VIVA Bahrain which was closed in February 2011

Al-Ghazzawi Professional Association (GPA) and Herbert Smith's partnership allows the UK firm's lawyers to practise out of its Saudi partners offices in Riyadh, Jeddah and Dammam. Established in 1969 by Dr Talal Amin Al Ghazzawi, GPA has 30 lawyers spread across its three offerings.

On the projects side, the association has been advising on some substantial mandates, the largest of which is the SR15 billion ($3 billion) Jazan Economic City project. A team of representatives from both firms are advising the Saudi Binladin Group and MMC Corporation on the development and financing of what will be the fourth economic city in the Kingdom.

Another large deal, the $8.25 billion second phase of the Haramain High Speed Railway Project, which will connect Makkah and Madinah, sees the firm acting for the developers the Al Shoula Consortium consisting of 11 Spanish construction companies.

In notable banking work Nadim Khan led a team advising Samba Financial Group on a SR555 million murabaha (deferred sale) facility to Obeikan Company in April 2011.

In a further deal on the M&A side, newly promoted Middle East partner Paul Scarr advised Investcorp's Gulf opportunities fund on the $50 million acquisition of an equity stake in Tiryaki Agro, a Turkish trader and supply chain manager of agricultural commodities.

The firm has also assisted clients in establishing joint ventures in the region. Acting for BSkyB the firm advised on setting operations Abu Dhabi Media Investment Company to launch the 24-hour Arabic news channel, Sky News Arabia. Stephen Rayfield and Nick Turner closed the deal in November 2010.

More recently, in April 2011, Rayfield advised Japanese plastics manufacturer Adeka in establishing a joint venture with Al Ghurair Petrochemicals to invest into and manage a plastic additives factory in Abu Dhabi.

One of the only firms in Saudi Arabia with a top-tier ranking in all areas, for many lawyers Al-Jadaan & Partners is the leading firm in the country. "Clifford Chance are very dominant here, they have a big team, they've been in the market a long time and they are well-established," explains one lawyer. Another agrees affirming that it is among the most active on the market. "They have been here for a while I think it's going very well for them. They are involved in a number of high profile transactions and are one of the most successful firms in Saudi Arabia."

Of the firm's lawyers, the name continually mentioned is the head of the Clifford Chance's associate firm, Mohammed Al-Jadaan. "I have such high regard for Mohammed, he is his own man and he's very good. He deserves the number one spot," says one peer, while another agrees: "I have a huge amount of respect for Mohammed." Clients say Al-Jadaan is the first person they call if they have a restructuring or debt capital markets mandate. "He's not an overly particular lawyer, usually lawyers raise issues but he always comes up with solutions. Especially when we have very complex transactions restructurings, we always call Mohammed Al-Jadaan. He knows the tactful way to get things done with the client."

Former leading lawyer Mohamed Hamra-Krouha has relocated to the Abu Dhabi office but this is not the loss it might appear given that the UAE practices serves as a hub and he will continue to support the Riyadh practice from Abu Dhabi. A new addition to the team is financial products and regulation partner Tim Plews, who relocated from London in September 2010.

In the banking sector, practise head Abdulaziz Al-Abduljabbar led a team negotiating on behalf of Saudi Oger securing a $1 billion loan facility and SR3.9 billion ($1 billion) APG facility. Elsewhere on the finance side, before he departed, Hamra-Krouha was active for Deutsche Bank and Bank Audi on a $400 million cross-border leveraged financing for the buy-out of a major regional insurance company, Medgulf, from Saudi Oger and was finalised in March 2011. In an ongoing piece of restructuring work, Al-Jadaan has been active for the minority shareholders of a large Saudi steel company, advising on refinancing its SR8 billion worth of conventional and Islamic facilities.

In the project finance space the firm advised on one of the key deals in the last 12 months, the Ma'aden aluminium and rolling mill development. A joint team from the Dubai, Frankfurt and Paris worked on the two projects, in conjunction with Al-Jadaan and Hamra-Krouha, advising the lending group, comprising Islamic and conventional institutions, on the $7.5 billion financing, which closed in November 2010.

With the equity markets volatile, it has been a difficult time to launch deals. The firm has advised on several that haven't come to market but continues to act for key clients on IPOs that are yet to be made public and remain confidential.

Debt markets have been less affected by the instability in the region and with the Saudi banks so liquid the sukuk (Islamic bond) market has provided the firm with mandates. The association has had two notable successes, Bank Al Jazira's SR1 billion sukuk, announced in March 2011 and the Saudi Binladin Group's SR700 million sukuk completed in July 2010. This latter transaction represents the first short-term commercial paper in Saudi Arabia and the first sukuk where investors may share the benefit of an assignment of contract proceeds.

A highlight deal for the firm on the corporate side saw it act for Saudi Telecom, the country's largest operator, on establishing a $2 billion joint venture with outsourcing services company Aegis.

Cross-border M&A work has dominated the deal-flow of EK Partners & Al-Enezee Legal Counsel in association with Squire, Sanders & Dempsey.

All the firm's key deals recently have been on the side of the buyer. Acting for AEP Investment Management Company (AEP IM), a Singapore/Saudi joint venture, the firm advised on SR75 million ($19 million) acquisition of a residential compound in March 2011.

In the pharmaceutical sector, the firm acted for the Dubai-based Planet Pharmacy on its SR200 million purchases of two Saudi pharmacy chains: Al-Amjad; and, Areej Al-Madinah Chains of Pharmacies.

A further matter saw the firm the firm act for the Nielsen Company (AC Nielsen), a global data collection and processing company headquartered in New York, in the acquisition of a Cyprus-based group of companies from the same industry which has operations in 31 locations including: Saudi Arabia, Lebanon, Kuwait and Qatar.

A solid performer across all practise areas in Saudi Arabia, Hatem Abbas Ghazzawi, has again demonstrated its capabilities with a decent portfolio of deals in the last 12 months.

Baking and finance practice head, Ali Abedi was involved in the firm's headline deal, in which the firm acted, with Shearman & Sterling, for Alcoa in connection with its joint venture with Saudi Arabian Mining Company (Ma'aden) for the development of a fully integrated $10.8 billion aluminium complex. The transaction achieved financial close in December 2010.

Presently, Abedi is active for the lenders of several bidders for projects that are yet to be awarded. One example sees the firm collaborating with Ashurst in connection with a bid by a consortia for the SEC Qurayyah IPP (independent power project) which will have a capacity of between 1,800 and 2,100 MW.

A further deal in its early stages, sees Abdei advising RAWEC, the existing utility provider to the Petro-Rabigh petrochemicals complex, in connection with its bid to provide the utilities to the $10 billion second-phase expansion.

In the equity markets, the team is advising an affiliate of Japan's biggest insurer Tokio Marine & Nichido in connection with its licensing, incorporation and IPO.

On the corporate side the firm is acting on behalf of an international advertising group in connection with the Saudi Arabian aspects of the acquisition of another similar organisation. The firm is also negotiating for an international airline catering company in connection with its acquisition of a shareholding in a Saudi Arabian provider of this service.

King and Spalding in Association with the Law Office of Mohammed Al Ammar was launched in Riyadh in 2007 becoming the US firm's second Middle Eastern practice after Dubai.

In banking and finance the firm have had an active 12 months advising corporates and, domestic and foreign banks on restructuring, and conventional and shariah-compliant facilities. An example of the latter saw partner Nabil Issa act for Saudi petrochemical company Gulf Farabi a SR385,000 ($102,000) shariah-compliant facility secured through Banque Saudi Fransi.

Corporate work is the firm's forte and it solidified its standing in the third tier for M&A securing and finalising series of mandates across the Kingdom.

Acting on behalf of the Jadwa Investment Company a team led by Issa advised on the shariah-compliant acquisition of a minority interest in Gulf Union Food Company, a Saudi Arabian beverage producer.

Long-standing client SHUAA Capital and its Saudi Arabian subsidiary required the firm's assistance with the acquisition of properties in Jeddah and Dammam, and also mandated the corporate team to prepare documentation for the Jeddah Centro Fund, which was the first sub-fund structure used in Saudi Arabia.

A further deal on the corporate side saw the firm advise US heavy-duty truck manufacturer, Oshkosh, on establishing operations in the Kingdom.

Formed in April 2010, Mohammed A Al-Sheikh and Latham and Watkins association has reaped almost immediate dividends. Market feedback is unanimously positive, with lawyers and clients saying Latham made an astute move stepping in to White & Case's (Al-Sheikh's former partners) shoes. Described as one of the best on the Saudi market by peers and clients, Al-Sheikh has been active across all practice areas. Of the partner one lawyer says: "We deal with him a lot, he is a very experienced lawyer. After a few ruffles he's doing quite well now. He's underbid me on a few deals. He's a very nice guy and a good lawyer." While a client says: "Mohammed is an excellent lawyer, he's definitely a tier one lawyer. The good thing about Mohammed is he's seen a lot of cases so he talks to you from experience. We do a lot with him on debt and we also do a lot with him on IPOs. He's certainly one of the best lawyers in the market."

The firm moves up a tier in banking and project finance in recognition of a solid 12 months, a number of recommendations from peers and solid client feedback.

Project finance head Craig Nethercott, who moved to the Middle East from London in 2011, has collaborated with Al-Sheikh on all the firm's significant project finance and banking work.

On the projects side, the pair represented Industry & Commercial Investment Company as project sponsor of an SR2.1 billion ($559 million) financing of a tubular steel factory in Jubail in February 2011. The firm's largest deal saw it involved in the Saudi Electricity Company's 1,730 MW gas-fired independent power project in Riyadh. It advised the banks in relation to the $2 billion project financing, which closed in June 2010 and is the second of three projects procured by the sponsor.

In the banking sector the firm closed two substantial Islamic deals in July 2010. The firm advised the Arabian Centres Company in refinancing an existing SR4.1 billion facility it held with a syndicate of banks via a murabaha (deferred sale) and tawarruq (asset sale and deferred payment) facility. Similarly, the firm acted for Trade Centre Company on refinancing its SR700 million debt via a murabaha and tawarruq facility.

With the equity markets quiet, the firm has only been active on the debt side. Al-Sheikh advised the Arab Petroleum Investments Corporation (APICORP) on it's first debt issuance of SR2 billion notes due 2015, which closed in October 2010.

On the part of the joint arrangers, JPMorgan and HSBC, the firm also advised on Bank AlJazira's SR1 billion sukuk (Islamic bond) due 2021 with a step up in margin in 2016. The sukuk will qualify as Tier II capital of the Issuer for Saudi regulatory purposes and was the first debt issuance by the bank.

On the corporate side the firm are active for a number of international clients establishing joint ventures but at the time of publishing all these deal remain confidential.

An independent Saudi Arabian firm is fast becoming a rare commodity in the Kingdom, with international firms keen to gain entry in to the region and local firms happy to strike up a lucrative association. But the Jeddah-based Hassan Mahassni continues to operate successfully on its own and is recognised by the market as having an excellent finance practice, with head Basel Barakat highly regarded by rival lawyers. "Basel is an excellent lawyer. He has been around a long time and really understands the market," says one.

An important client of the firm's is the Saudi Binladin Group, which the firm have advised on a succession of matters. A team led by Barakat advised the Group on the SR8.5 billion ($2.2 billion) shariah-compliant multi-option facility arrangements for the major expansion and upgrading works for King Abdulaziz International Airport in Jeddah, Saudi Arabia, which closed in May 2011. The firm also assisted its key clients in securing a SR5.5 billion shariah-compliant facility for the construction of the King Abdullah Financial District in Riyadh, which closed in December 2010. In a further deal for the client, Barakat advised on a SR1 billion financing for the construction of the Capital Markets Authority Tower.

Barakat and his team are also advising the lenders consisting of the National Commercial Bank, Banque Saudi Fransi, Standard Chartered and HSBC in relation to a £2 billion bid submitted by ACWA Power Projects and its consortium partners for the Qurrayah IPP (independent power project), Saudi Electricity Company's third IPP. The firm is also active for the lenders in connection with the refinancing arrangement, amounting, overall, to $458 million, for National Petrochemical Industrial Company (NatPet), relating to the construction and operation of a 400,000 tonnes propylene and polypropylene manufacturing complex in Yanbu.

Basel Barakat (Leading lawyer bio)
Hassan Mahassni (Leading lawyer bio)

Divided between the firm's two offices in Saudi Arabia and Bahrain, the partners in Legal Advisors/Baker & McKenzie act on inbound and outbound mandates between these two countries. Both offices offer plenty of market recommended names but clients highlight Saudi partner Karim Nassar and the Bahrain-based Ian Siddell and Julie Alexander. Of Nassar clients say he is an excellent corporate lawyer: "He's dedicated, he is bilingual, which is very useful, he's professional he has an excellent insight and in any large corporate transactions he understands the pitfalls, the do and don'ts." Siddle and Alexander are also highlighted by clients as exemplary lawyers and reliable. "Ian and Julie are always available and very professional," says one.

Competitors note that the firm has built up important relationships and an impressive contact book in Saudi Arabia and consider it at the forefront of the country's prominent deals. "They have very good ties with the local business slash political community and this has also contributed to opening doors to them. In all areas they have a good reputation. They've been working on a lot of transactions involving capital markets including drafting government legislation," says one peer.

IPO's have been rare in Saudi but the association advised Knowledge Economic City on its $272 million IPO of 30% of it's share capital, which closed in August 2010.

On the debt side, acting for Saudi Binladin Group, Siddell led a team advising on a SR1 billion ($266 million) murabaha (deferred sale) based sukuk (Islamic bond), which was issued as an exempt offering in Saudi Arabia.

Alexander is considered one of the leading project finance lawyers in the country and in line with her reputation; she advised on one the country's larger transactions, acting for the providers of a SR6 billion multi-option Islamic and trade finance facility for the Saudi Binladin Group to assist with the development of the King Abdulaziz International Airport in Jeddah. The deal was signed in March 2011.

Part of the Saudi government's economic diversification programme is an aluminium smelter and rolling mill. Siddel's involvement in the deal sees him advising the Saudi Arabian Mining Company in the $7.5 billion multi-tranche integrated project financing which closed in November 2010.

In the banking sector, Alexander assisted the Power and Water Utility Company for Jubail and Yanbu, Marafiq, in its inaugural debt financing of SR2.5 billion in July 2010. A club of regional banks led by The National Commercial Bank also mandated Alexander and her team to act in relation to the SR1 billion multi-option Islamic and trade finance facilities made for the Saudi Binladin Group to assist with the engineering, design and construction of the CMA Tower project in the King Abdullah Financial District in Riyadh..

A restructuring case, which is yet to close, sees Siddell acting for Al-Ittefaq Steel Products (ISPC) in connection with refinancing it's existing conventional and Islamic liabilities of over $2 billion.

The association's corporate practices saw a considerable number of departures in 2010 with partner John Xefos retiring and seven associates leaving for pastures new. Three new associates have since been drafted in.

Despite pure M&A deals being in short supply, the firm secured roles, advising the Qatar Steel Company on its acquisition of Saudi group, South Steel Company and Hutchinson Port Holdings and the Maritime Company for Navigation (MACNA) in relation to the acquisition of a 51% interest in the Saudi Development Re-Export Services.

Nasser was also active and advised long-standing client Al Babtain Power and Telecommunications Company on its acquisition of 49% of Al Babtain LeBlanc Telecommunications Systems. The landmark transaction is the first in which a foreign shareholder has acquired shares in a public company in the Kingdom through a share swap transaction.

The Law Firm of Salah Al Hejailan in association with Freshfields Bruckhaus Deringer is led by the managing partner of the magic circle firm's Saudi offering, Tobias Müller-Deku, and Sultan Al-Hejailan the local practice's founder.

Consistently competitors query the firm's visibility but it has the mandates to prove that it has been active and has accrued significant transactions across all practice areas.

In capital markets, Müller-Deku, Fares Al-Hejailan and William Coleman are advising investment bank Calyon Saudi Fransi on the IPO of Saudi Arabian Airlines' catering unit. Press reports speculate the deal could be worth $540 million if it launches – it has been now been delayed twice: in Q4 2010 and Q2 2011. The group are expected to try again at the end of 2011.

On the debt side the firm is advising Alhamrani Company for Investment and Trade (a Saudi conglomerate) on the rated securitisation of a portfolio of auto receivables.

A standout deal for the firm on the banking side came for the Samba Financial Group which needed Müller-Deku, Al-Hejailan and Coleman's assistance with the SR7.2 billion ($1.9 billion) murabaha (deferred sale) bridge financing of Saudi Arabian Airline's new fleet, which the firm also advised on syndicating with Alinma Bank.

In the M&A sector the firm advised Saudi Arabian Airlines on its privatisation of ground handling services, which involved the SR6.3 billion merger of three ground handling businesses. Saudi Arabian Airlines (Saudia), National Handling Services (NHS) and Attar Travel (Attar) joined to form a new operating company: Saudi Ground Services Company (SGS) in December 2010.

A further mandate engendered by privatisation sees the firm act for The Saline Water Conversion Corporation (SWCC) on its proposed move to pivatise 30 cogeneration and water desalination facilities and a 3,600 kilometres water transmission system. M_üller-Deku and Ahmed Arif are advising the SWCC on the proposed $10 billion deal which, if completed, will be the first such move by a large Saudi state owned utility company.

An ongoing project finance mandate for the firm sees it advising the Saudi Binladin Group and Deutsche Bahn on the consortium agreement relating to the Saudi Arabian Haramain High Speed Railway Project.