Riyadh-based firm Abdulaziz A Al-Bosaily (AAB) has found a new partner in Clyde & Co, after breaking off its alliance with DLA Piper in January. The common thread is a former DLA Piper lawyer involved in establishing both the old and new alliances.

Management differences led to the termination of the six-month old partnership between AAB and DLA Piper earlier this year, with the latter losing two of its lawyers - Oliver Agha and Peter Hodgins - who spearheaded the alliance. Hodgins moved to Clyde & Co and was involved in the firm's new alliance with AAB.

Hodgins confirmed the break up of DLA Piper's alliance with AAB was caused by differing management views.

"Essentially it was a difference in opinion as to how that Saudi affiliation would run, how work would be dealt with and really a different direction that Abdulaziz and the team working in Saudi Arabia wanted to go," Hodgins said. "There were a number of departures around the time of the breakdown of the affiliation and my colleague Oliver Agha also left at the same time."

Hodgins said his friendship with AAB's Abdulaziz, while under the alliance with DLA Piper, contributed to the formation of the new alliance. "I used to work with Abdulaziz at DLA Piper both in Dubai and when he established his new office in Saudi Arabia. I introduced him to Clyde & Co and [although] he was known to the firm prior to my involvement, obviously my friendship with him has been a factor that has assisted in getting this affiliation on the ground," he said.

The new partnership will recuperate AAB's international market presence and broaden Clyde & Co's regional reach, since foreign firms are not legally allowed to open a Saudi office alone. Clyde & Co will be making secondments to Riyadh in the next few months.

"What we're [going to do] is work closely with AAB with the referral of clients to and from the offices, as well as providing the resources to assist Abdulaziz  in the work that he's doing, which will include seconding lawyers on the ground in the future. That may not happen immediately, but it's something we're keen to do nevertheless," Hodgins said.

The firms will be working together to capture Saudi clients in corporate and Islamic finance-related transactions.

Clyde & Co's strategic regional extension comes as other Dubai-based firms begin to experience the effects of the downturn - Trowers & Hamlins and DLA Piper, for example, have recently made associates redundant due to waning client demand. But Hodgins says his firm views Saudi Arabia as a more active market than other Middle East regions, with Islamic finance the main driver of growth.

"We think Saudi Arabia has a very vibrant economy by global standards and we see a lot of the region's legal work that will be generated [in the future] coming out of Saudi Arabia particularly," Hodgins said. "Islamic banks have significantly less exposure to [the downturn] and overall they probably are in the stronger position. I think we'll see a rise in Islamic banking in the coming years."