Linklaters has entered into a cooperation agreement with former Allen & Overy (A&O) Saudi Arabia associate firm Abdulaziz AlGasim Law Firm.

The deal between Linklaters and Abdulaziz AlGasim went live last Friday (14 December) – one month after it emerged that A&O's team had moved out of the associated office in Saudi Arabia.

There is no set term length for the new deal, with the cooperation between the firms expected to continue indefinitely.

A&O had originally signed a five-year deal with the firm in 2007 that expired in May this year; however, the contract provided for an automatic one-year extension.

The team, which according to A&O's website comprises nine lawyers, has left Abdulaziz AlGasim's premises in Riyadh, where A&O has been based in the region.

A Linklaters spokesperson said: "We have been doing transactions in the Middle East for over 30 years and established our office in Dubai in 2005 and in Abu Dhabi last year.

"We have been very successful in developing our Saudi practice and this arrangement with Abdulaziz AlGasim Law Firm will allow us to further extend our already very active practice. They are one of the leading firms in the market and we are delighted to be able to work with them."

The deal marks Linklaters' first presence on the ground in Saudi. UK firms can only operate in the region in association with a local firm.

The magic circle firm has also taken roles on a number of big Saudi transactions in recent years, including advising the Saudi Railways Organisation on a €6.5bn (£5.3bn) project to build a high-speed rail link to connect the holy cities of Mecca and Medina last year.

A&O is expected to remain in Saudi through either a new association with a local outfit or by launching its own office under the name of local partner and Saudi-qualified lawyer Zeyad Khoshaim.