Clifford Chance (CC) has become the first international law firm to set up a mixed local and foreign lawyer partnership in Saudi Arabia after securing approval to integrate with its longstanding ally in the region.

CC and Al-Jadaan, which have been allied since 1998, will integrate their corporate, finance and capital markets practices in the region as of 1 January next year.

Al-Jadaan partners Abdulaziz Al-Abduljabbar and Khalid Al-Abdulkareem will become CC partners, with a number of Al-Jadaan associates and support staff also moving across to the magic circle firm.

Only those registered with the Saudi authorities are permitted to practise Saudi law. CC does not currently handle Saudi law in Riyadh, but with the transfer of the Al-Jadaan lawyers to CC, approximately half of the lawyers who will now be working for the firm in Saudi will be locally qualified.

The rest of the Al-Jadaan team, which includes managing partner Mohammed Al-Jadaan, Yousef Al-Jadaan and Abdullah Al-Hashim, will remain partners with local outfit, which will operate as a niche boutique focusing on litigation and mediation, legal strategy and structuring activities.

Mohammed Al-Jadaan will continue as managing partner of Al-Jadaan in addition to acting as a special adviser to CC on Saudi transactions.

CC Middle East head of financial services Tim Plews said: "It was important to the firm to elect Saudi lawyers to the partnership for the first time – we realised that Saudi was an important country to have a permanent practice in.

"The firm had been discussing the option of a partnership for a few years given the liberalisation of the market and World Trade Organisation obligations that came into effect several years back. We've been cooperating with Al-Jadaan since 1998 and we wanted our practice in the region to continue growing – this partnership is the best way to ensure that."

Al-Jadaan, one of Saudi Arabia's largest law firms, was founded by Yousef Al-Jadaan and Mohammed Al-Jadaan in 1996. It now has more than 40 staff, including 21 lawyers in its Riyadh base.

Mohammed Al-Jadaan said: "This ground breaking move reconciles the ambitions of the Al-Jadaan partners with the long term needs of our clients. This development is also great news for Saudi legal talent who will now have the opportunity to train with and develop their careers in one of the world's leading international firms, ensuring they benefit from an institutionalised career path."

During the last two years CC has launched three offices across the Middle East and North Africa, with launches in Doha, Casablanca and Istanbul. The firm also has offices in Dubai and Abu Dhabi.