French firm Gide Loyrette & Nouel will exit the Middle East after announcing its intention to close its Abu Dhabi, Dubai and Riyadh offices.

The firm, which has had a physical presence in the region since 1978 when it opened in Riyadh, said it could no longer assure the long-term success of its Gulf operations given the drop off in transactional levels and increasing competition from English law firms. 

“Dubai is shrinking dramatically so whatever remains of work in construction and, in some cases project finance, would naturally go to those English firms that have been there for ages,” said the firm’s managing partner Pierre Raoul- Duval. “The return of investment there was unsure, and we weren’t sure we could offer young lawyers a future.”

The firm has a total of 12 lawyers in the region: five in its Abu Dhabi office, four in its Dubai and three in Riyadh.

Although the firm is physically withdrawing from the region, it has said it will continue to be active in the Middle East through alliances with local law firms and its membership of international law firm network Lex Mundi.

The firm’s office closures are not limited to the Middle East. The firm will also close its Prague office and intends to wind down its Belgrade operations progressively over the next 12 months.ALB