Despite a slew of eye-wateringly expensive deals in the region, international law firms could be forgiven for being hesitant to expand in the Middle East, as a narrative of simmering political tensions in the region rumbles on amid fluctuating oil prices.

But with Saudi Arabia ramping up its efforts to diversify its revenue stream and lessen its dependence on oil as part of its Vision 2030 initiative, lawyers working in the region say the market is abuzz with interest over the kingdom's opening up to foreign direct investment.

"Without some of the restrictions, interest in the kingdom is beginning to go the right way," says Pervez Akhtar, Freshfields Bruckhaus Deringer's managing partner for the Middle East and Africa. "The message from Saudi is to let big business come here."

Such liberalisation, some partners say, could result in an increased level of competition between businesses located in Dubai – the long-established financial hub of the region – and Riyadh, as multinational companies eye fresh opportunities.

Debashis Dey, White & Case capital markets partner, said: "Over the next 10 years or so, if reforms continue and the economy opens up in the Kingdom, there may be a rise in competition between businesses located within the United Arab Emirates and Saudi Arabia."

Clifford Chance Middle East partner James McCarthy says: "Dubai is still very much the hub for business in the Middle East and I don't see that changing in the near term. At the moment, Riyadh and Doha are behind but we could see Riyadh, in particular, closing the gap given the level of investment."

And with extra interest comes additional work for lawyers, who say that work in the projects, M&A and financial services sectors are hotting up as Saudi develops its portfolio.

International law firms that have stepped up – or at the very least renewed – their efforts to link up with local firms in the kingdom during the past year include Mayer Brown, DLA Piper, Ashurst and Hogan Lovells.

Norton Rose Fulbright Middle East head Deirdre Walker says that both Dubai and Riyadh are the key growth markets in the region: "Dubai because it's the financial centre and I think will remain so, and Saudi because I think that the opportunity for development and transactions is enormous given the 2030 vision."

According to Legal Week research, out of the top 50 U.K. and AmLaw firms, 50 have an office in Dubai and 22 have bases in the UAE's capital of Abu Dhabi, while 21 firms have an office in Riyadh.

Mega-deals to have benefited international law firms in the region in 2019 include the £2.3 billion London initial public offering (IPO) of Dubai-based payment solutions company Network International, U.S. private equity giant Carlyle Group's $3.6 billion oil and gas deal with Emirati sovereign wealth fund Mubadala, and Uber's $3.1 billion acquisition of Saudi Telecoms Company-backed car-booking app Careem, with the likes of Linklaters, Allen & Overy and Freshfields picking up key roles.

And with questions still swirling around the market over the planned IPO of Saudi government-backed petroleum behemoth Saudi Aramco, global attention is still firmly placed on the kingdom and its business plans – and which lawyers may get to pick up a mandate from the government-backed petroleum company.

But competition isn't the only thing that could come out of Riyadh's relaxing of rules. Partners are quick to assert that cooperation between the UAE and Saudi will pave the way for growth in both countries, since many multinational businesses will likely continue using Dubai as the stepping stone to their Middle East operations.

Should the two countries work together to synchronise an approach to trade, free zones and services, they could make themselves a "supra-regional trade hub", according to one partner.

This increased level of activity in Saudi, however, could tie the fortunes of its neighbours more closely to its own. Speaking at Legal Week's Corporate Counsel Forum in Dubai in April, economist Dr Nasser Saidi, founder of Nasser Saidi & Associates and former chief economist at the Dubai International Financial Centre Authority, said: "Saudi has become too big and too interconnected (with the other GCC nations) to fail. Vision 2030 is a vision for a different future for the countries of the region. Nobody can afford for that to fail.

"If it does fail, the backlash will be increased conservatism – those forces will come back. That's why you're seeing closer rapprochement between Saudi and the UAE. Everybody [in the GCC] now has a stake in the success of Saudi Arabia."