In 2009, New Zealand firm Kensington Swan opened an office in Abu Dhabi - a venture which has attracted curiosity from some quarters and scepticism from others. UAE managing partner Quentin Lowcay argues that the Middle East is of increasing relevance to Australian and NZ business and the demand for Middle East-Australasian legal advice can only increase.

Every day you pick up a paper or read on-line news, the Middle East is making headlines - unrest, demands for social change, insurgency, civil war.  But looking through those headlines is a realisation in the Arab world that evolution is happening - not revolution. 

Once this phase is completed, it is going to leave behind a new region, where locals are calling for political reform, jobs, more transparency, modern economic structures and open government.  To deliver these features will need a great deal of change in the existing economies.  New jobs and diversification away from purely oil-based sectors will need infrastructure investment, economic reform and business growth.

This degree of change will be unprecedented. Even before the current political earthquakes through the Middle East most if not all of the oil based economies were looking for assistance to develop new industries, a professional services sector, government reform, new legislation, development of export opportunities, investment and transferable technologies.

Countries throughout the Middle East will need good advisors and support from professionals to deliver on the reforms required - and this is where lawyers from Australia and New Zealand can come in.

Our New Zealand / Australian region is one of the most recognised "leading international practice" and best-of-breed economic zones.  We have open government, modern structures, and simplified bureaucracy (particularly in New Zealand).   Many governments in the Middle East hold New Zealand / Australia up as leading examples to be followed.  For example, the Dubai unit titles legislation is a mix of the Australian and New Zealand systems. 

This means that there are great opportunities for New Zealand and Australian business advisors, consultants and law firms.  We can assist governments, private sector and international investors implement the economic features that we already are familiar with.

It is important to realise that the Middle East is far from one region.  The differences in Bahrain, Qatar, UAE and Oman are significant - let alone Saudi Arabia.  Then there is Iran, Iraq, Lebanon, Jordan, Syria and Kuwait.  Even within countries, different areas have significantly different markets.

When Kensington Swan set up our Branch in Abu Dhabi two years ago, this was a deliberate choice.  Abu Dhabi has an extremely strong economy underpinned by large oil & gas reserves.  It also has a very advanced strategic plan for the diversification and modernisation programme required to move the Emirate to a leading economy, encapsulated in the Abu Dhabi Economic Vision 2030.  This programme requires a lot of governmental change, new industries to develop and active growth of the private sector away from petro-chemicals.  Contrast that of Dubai, where the much publicised collapse is still weighing down the local economy to the extent of large cash bail-outs in 2010 by Abu Dhabi. 

With this much activity and change happening in Abu Dhabi, the opportunities for lawyers is significant.  And this has certainly been proven in practice - Abu Dhabi is a growing area for new entrants and most of the largest UK or US firms are already there or are setting up in the region. There are currently 17 international law firms in Abu Dhabi with at least 2 more planning to open in 2011.

Other countries and other regions have equally impressive opportunities.  For example, Qatar with the award of the Football World Cup has a massive programme of construction and development ahead; Saudi Arabia has a massive programme of growth and diversification; Oman has just announced large stimulus and infrastructure programmes. 

But what we have realised after our two years on the ground is that things do not happen overnight.
Law firms entering this market must have patience - which translates into the business case that allows a Branch to grow and develop a reputation on the ground over time.  At Kensington Swan, we were fortunate to have 6 years experience working in the GCC from our base in New Zealand, as it takes a long time to get to know the right people and establish a reputation locally.

Most of the Middle East works on a relationship-based business model.  Regular work is given to trusted advisers the client knows well.   It is hard to break into these relationships, but not impossible; you need to demonstrate commitment to the particular country you are working in, and add value - whether through expertise, pricing or offering different approaches.  Personalities and the personal touch matter.   Networks need to be built, nurtured and maintained.

Overall, it may be a slow and sometimes frustrating process at times, but once you have committed to the investment into the Middle East, there is huge potential over the next decade.

Quentin Lowcay is the Managing Partner of the Abu Dhabi Branch of Kensington Swan.
Kensington Swan is an international advisory and projects law firm, with offices in New Zealand and the United Arab Emirates specialising in corporate, government sector, investments and projects advice.