Lovells has launched an alliance with a Saudi law firm in a bid to service the market on the ground.

The top 10 City firm has signed an agreement with Al-Yaqoub Attorneys & Legal Advisers (AYALA), led by former Trowers & Hamlins ally Montasir Al-Yaqoub.

Al-Yaqoub is the only partner in the six-lawyer firm, although Lovells' counsel Imran Mufti and associate Mustafa Kamal are also being seconded to the firm. Al-Yaqoub is currently based in Riyadh but will also open in Jeddah, where Kamal will be based.

Lovells said the launch came in response to increasing client demand in Saudi Arabia which has stemmed from the growth of its Middle East practice since launching in Dubai in 2007. International firms can only set up offices in Saudi Arabia in association with a local lawyer.

Lovells Asia and Middle East head Crispin Rapinet said: "For us Saudi was the next logical step for our Middle East practice. We need to have an association in order to have lawyers there and for us Montasir is the right lawyer to work with."

"He very much thinks like an international lawyer and is someone our clients can relate to. In addition, Montasir himself also has very interesting client relationships."

Al-Yaqoub, who previously worked with Andersen Legal and Ernst & Young, set up his own firm in 1992. In 2006 the firm established an alliance with Trowers & Hamlins and another Saudi firm, The Law Office of Hassan Mahassni, although the relationship was shortlived and negotiations with Lovells began in 2008.

Lovells and Al-Yaqoub's association will not have a formal relationship with Mahassni, although they will continue to have a referral relationship