It’s not who I am underneath, but what I do that defines me: How English law and practice is subtly changing the way business is done in MENA

English Law Focus

It’s not who I am underneath, but what I do that defines me:

How English law and practice is subtly changing the way business is done in MENA

Matthew Heaton
Partner, Head of Office - Qatar
Banking & Finance

The legal and business frameworks of England have profoundly shaped the commercial landscape in the Middle East. As global trade has expanded and the Middle East has emerged as a pivotal centre for business, finance and international commerce, the influence of English law and business practices has become increasingly evident. This impact is particularly notable in countries such as the UAE, Saudi Arabia and Qatar, which have actively integrated elements of English law and business practice to stimulate economic growth, attract global investment and enhance business infrastructure.

Role of English law in Middle Eastern commerce

As is explained in more detail elsewhere in this edition of Law Update, English law has had a profound impact on legal systems across MENA, with its influence seen in contract law, corporate governance and dispute resolution. Several factors have driven the adoption of principles English law, each contributing to a creating a more stable and robust business environment in the region.

Influence of English business practices in the Middle EastBeyond legal frameworks, English business practices have also shaped corporate culture and operational standards in the Middle East. These practices emphasise professionalism, efficiency and flexibility, which are essential for conducting business in today's global economy. Key areas of influence include:Business structure and organisation
English business models have influenced corporate structures in the Middle East. The use of joint ventures, limited liability companies (LLCs) and public limited companies (PLCs), all concepts familiar in English business law, are widely adopted in the region. These structures allow businesses to limit risk, attract foreign and local investment and manage economic growth and social development in ways that align with global best practice. Financial services
The financial services sector in the Middle East, especially in the UAE, Bahrain and Qatar, has been strongly influenced by English business practices. The introduction of sophisticated banking systems, financial markets and investment vehicles reflects the legal and business principles integral to the UK's financial services industry. The use of English as the main business language, combined with adherence to financial regulations inspired by English law, has made Middle Eastern financial centres more integrated into the global economy. Transparency and ethics
English business culture places a high emphasis on transparency, ethical conduct and the rule of law. These principles have been increasingly adopted in the Middle East, particularly as the region seeks to diversify its economies away from dependency on hydrocarbons and establish itself as a global business hub. In countries like the UAE, the implementation of stricter corporate governance codes and anti-corruption regulations has been part of the push to align with international standards. Furthermore, the rising importance of corporate social responsibility (CSR) in the Middle East is another area where English business practices have had a significant impact. The concept of CSR, which encourages businesses to consider the broader social and environmental impact of their operations, has gained traction, especially in oil-rich nations looking to modernise their economies and improve their global standing.

Beyond legal frameworks, English business practices have also shaped corporate culture and operational standards in the Middle East. These practices emphasise professionalism, efficiency and flexibility, which are essential for conducting business in today's global economy.

Case studies: The UAE, Qatar, and Saudi Arabia
The UAEThe UAE, particularly through Dubai and the DIFC and Abu Dhabi and the ADGM, exemplifies the influence of English law and business practice in the Middle East. The DIFC Court, which follows English common law principles, has become a hub for international legal disputes. Dubai's status as a global business and trade centre can, in part, be attributed to the clarity and predictability of its legal system, rooted in English law. English is the dominant business language in Dubai, and foreign companies from all over the world prefer to operate in the UAE because of its legal framework, transparent business environment and efficient dispute resolution systems. Saudi ArabiaSaudi Arabia is undergoing a significant transformation as part of its Vision 2030, which aims to diversify the economy and attract foreign investment. While Saudi Arabia's legal system is based on Islamic law (Sharia), the country has introduced reforms that align with international business practices, including those derived from English law. The creation of the Saudi Arabian General Investment Authority (SAGIA) and the establishment of specialised economic zones with UK-style business regulations reflect the influence of English legal and business practices.QatarQatar, with its rapid economic development and focus on attracting international investment, has also turned to English law to build a favourable business climate. Qatar's laws governing business practices, such as its laws around foreign investment and corporate governance, have drawn heavily from English principles. Furthermore, Qatar has established the Qatar Financial Centre (QFC), which is modelled on international business hubs and uses English-based laws and business practices. ConclusionThe influence of English law on the Middle East is undeniable. However, perhaps less renowned but just as significant is the way that norms and processes of English business are helping shape the business environment in MENA. The region's ongoing economic modernisation and global business integration have been facilitated by the adoption of English business principles, burnished by the ever-growing number of expatriate lawyers, bankers and other professionals moving to the region from the UK. As the Middle East continues to evolve, the influence of English law will likely remain a key factor in shaping business practices, providing a framework for continued growth, stability and global investment opportunities. And, unlike at some other points in history, the contribution and importance of England to the economic, social and financial development is being actively welcomed by governments and regulators across the region.

For further information,
please contact Matthew Heaton.

^{Published in}^{May 2025}