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© Koninklijke Brill NV, Leiden, 2013 DOI: 10.1163/15730255-12341265 Arab Law Quarterly 27 (2013) 271-279 brill.com/alq Arab Law Quarterly English Law in Saudi Arabia Anna Rogowska* Assistant Professor, Legal Studies Program, Dar al-Hekma College, Jeddah, Saudi Arabia Abstract is article argues that it is important for Saudi law graduates to be familiar with certain aspects of English law (alongside Shariʿah and Saudi laws). Accordingly, it firstly discusses the importance of English law in international business practice and then briefly presents its current use in Saudi Arabia, and the Middle East in general. is study is mainly based on teaching and studying English law at Dar al-Hekma, a private college for women in Jeddah, Saudi Arabia. It examines how Dar al-Hekma students in particular can benefit in their future practice from studying English law. Keywords English commercial law; Saudi law; Saudi lawyers; Shariʿah; Saudi higher education; Saudi arbitration 1. Introduction e idea of studying English law in Saudi Arabia might seem strange and dubious to some, yet thought provoking to others. Dar al-Hekma, a pri- vate college for women in Jeddah, 1 is the only higher institution in Saudi Arabia that has been offering selected courses on English law as part of its legal studies program for several years now. What is the wisdom behind this initiative? Can English law be relevant and usable in Saudi Arabia? British students study their own country’s laws to qualify as solicitors or barristers practicing law in the UK. An English law degree opens the door to highly sought legal qualifications in the US. English law graduates often go on to take the New York Bar Exam afterwards. Still, why would a Saudi * PhD (Essex), Magister of Law (UAM), LLB (EUV Viadrina). Former senior counsel at top investment bank in London. E-mail: [email protected]. 1 See www.dah.edu.sa, accessed: 19 May 2013.
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English law in Saudi Arabia

Dec 19, 2022

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Page 1: English law in Saudi Arabia

© Koninklijke Brill NV, Leiden, 2013 DOI: 10.1163/15730255-12341265

Arab Law Quarterly 27 (2013) 271-279 brill.com/alq

Arab LawQuarterly

English Law in Saudi Arabia

Anna Rogowska*Assistant Professor, Legal Studies Program, Dar al-Hekma College, Jeddah, Saudi Arabia

AbstractThis article argues that it is important for Saudi law graduates to be familiar with certain aspects of English law (alongside Shariʿah and Saudi laws). Accordingly, it firstly discusses the importance of English law in international business practice and then briefly presents its current use in Saudi Arabia, and the Middle East in general. This study is mainly based on teaching and studying English law at Dar al-Hekma, a private college for women in Jeddah, Saudi Arabia. It examines how Dar al-Hekma students in particular can benefit in their future practice from studying English law.

KeywordsEnglish commercial law; Saudi law; Saudi lawyers; Shariʿah; Saudi higher education; Saudi arbitration

1. Introduction

The idea of studying English law in Saudi Arabia might seem strange and dubious to some, yet thought provoking to others. Dar al-Hekma, a pri-vate college for women in Jeddah,1 is the only higher institution in Saudi Arabia that has been offering selected courses on English law as part of its legal studies program for several years now. What is the wisdom behind this initiative? Can English law be relevant and usable in Saudi Arabia?

British students study their own country’s laws to qualify as solicitors or barristers practicing law in the UK. An English law degree opens the door to highly sought legal qualifications in the US. English law graduates often go on to take the New York Bar Exam afterwards. Still, why would a Saudi

* PhD (Essex), Magister of Law (UAM), LLB (EUV Viadrina). Former senior counsel at top investment bank in London. E-mail: [email protected].

1 See www.dah.edu.sa, accessed: 19 May 2013.

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study English law and, moreover, why would a Saudi choose to do it at home in Saudi Arabia rather than in the UK?

To address the above questions, it is important to understand the value of English law in international business nowadays. Let us first look at this issue briefly and then turn to the matter of studying English law in Saudi Arabia.

2. Popularity of English Law in International Business

Old-standing English law, particularly on the sale of goods and contracts as broadly taught at Dar al-Hekma, is very well developed and engenders comparative legal certainty. Common law is applicable in very few EU countries.2 However, some of the world’s strongest economies with which Saudi Arabia has, or aspires to have, powerful trading relationships are historically rooted in the English legal system. Those include, for example, the US, Canada, Australia, Hong Kong, Singapore, India, and Nigeria.

Various empirical studies further indicate that English law is the most used in conducting cross-border transactions, particularly commodities trades.3 It is also very common for parties to choose cost- and time-effec-tive English arbitration or jurisdiction in relation to contracts that have little or no connection with the UK at all. Yearly statistics regularly dem-onstrate that around 80% of cases at the renowned Commercial Court in London, which in general deals with both domestic and international transactions of trade and commerce, involve a foreign claimant or defendant.4 English law is prevailing not only in commodity contracts but also in derivatives agreements. The financial and insurance world oper-ates mainly from the common law countries. London, New York, Singa-pore and Hong Kong are where major banks, funds, exchanges and financial and insurance advisory firms are based and trades are conducted. English law, and to a lesser extent New York law, are considered as a market-standard governing laws for major international financial contracts (such as ISDA agreements).

2 Those are the UK, Ireland and Malta.3 For example, White & Case International Arbitration Survey: Choices in Interna-

tional Arbitration (2010), or Clifford Chance Survey on European Contract Law (2005).4 Judiciary of England and Wales, A Report of the Commercial Court and Admiralty

Court (2005-2006) 2.

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Further factors that underscore the value of English law are the first-class, highly specialized English judges (appointed from among the top legal professionals), solicitors, barristers, arbitrators and mediators, as well as the recognition that a decision from the English courts carries a guaran-tee of judicial excellence and integrity. This does not imply that English lawyers are flawless but rather that the international business community highly favours their services as compared to those of many other legal sys-tems. No wonder that Lord Phillips, one of the most senior English judges, was lately appointed as president of the Qatar International Court and Dispute Resolution Centre, a well-known Middle Eastern arbitration cen-tre (where many other judges are also former English judiciary members).5 Moreover, in line with the on-going calls from the UK’s Ministry of Justice to bring more international legal disputes to Britain,6 the Financial Times reported last year that Saudi Arabia apparently plans to set up in London a special arbitration tribunal to settle its commercial disputes under Eng-lish law.7 Saudi contracts applying English law may be in the pipeline.

In addition, a popularity of the English language has an impact on the legal aspects of international transactions. English is not only the most widely used foreign language but also considered a lingua franca or work-ing language for international business and international counsels across the EU, Asia and the Middle East. Business and professionals from differ-ent parts of the world negotiate and close deals in English, draft legal agreements in English, use English legal terminology and, consequently, more or less knowingly refer to English legal concepts (which may also have negative implications). Some national licenses, certificates, or other legal documents relevant for international business are routinely translated into English for the convenience of foreign parties. The choice of English law and English forums for dispute resolution in international business practice might be thus influenced by the fact that the whole agreement, supporting documents and negotiations tend to be carried out in the Eng-lish language. In Saudi Arabia, contracts between governmental authorities and foreign investors can be drafted in English. However, they should be translated into Arabic. Hence, the Arabic translation will prevail in case of

5 See their homepage at http://qicdrc.com.qa/Services.aspx, accessed: 19 May 2013.6 O. Bowcott, “Justice Secretary calls on world to bring legal disputes to UK”, The

Guardian, 14 March 2013.7 C. Binham and H. Warrell, “Saudis seek private court in London”, Financial Times,

30 October 2012.

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a dispute. This does not apply to agreements between private contractors. In this context, it could be mentioned that, for example, German regional court has lately recognised the influence of English language by proposing to the German government to establish special courts for matters concern-ing international trade where, with the parties’ agreement, the proceedings at the preliminary stage could be held entirely in English.8

Accordingly, the leading law firms headquartered in London now have offices around the globe, including in Saudi Arabia where they partner with reputable local Saudi firms (with Clifford Chance entering the mar-ket in 2014 as the first international law firm to establish a mixed type of partnership between a Saudi and non-Saudi/non-GCC law firm).9 In Saudi Arabia they focus on both transactional work and local litigation.10 They will often combine principles of Shariʿah law together with the prin-ciples of foreign, mainly English laws, in their practices (while foreign laws conflicting with Shariʿah will not be enforceable).11 It is appealing, how-ever, to see what mixtures of legal experience the attorneys leading the Saudi offices of these large law firms possess. For example, Allen and Overy’s homepage states that its office in Riyadh is currently managed by three partners: a lawyer qualified in both Saudi and New York, a UK quali-fied lawyer who is fully fluent in Arabic, and a German qualified lawyer with over 20 years of experience.12

Finally, internationally, companies may simply have to accept trading under English law, if they are smaller and have less bargaining power than their trading partners; particularly if they are transacting with some large international enterprises or commodities traders who are based in the com-mon law jurisdictions.

The strengths and, of course, existing weaknesses of English law are known and have been tested before the courts. This body of case law allows

8 A. Janssen and R. Schulze, “Legal culture and legal transplants: Germany; past, present and future”, Saidat Law Review 1 (2011) 37.

9 First in the sense that it is not based on a sponsorship but consists of 75% foreign and 25% Saudi ownership; J. Friedman, “CC gets it together in Saudi Arabia”, The Lawyer, 11 March 2003. Also, see: http://www.cliffordchance.com/about_us/find_people_and_offices/offices/riyadh.html, accessed: 19 May 2013.

10 They often advise foreign investors on joint ventures, public procurement, privatiza-tions, companies’ incorporation and governance as well as commercial agreements, etc.

11 Since the Qurʾān, Sunnah and underlying jurisprudence (i.e., Shariʿah), are an ‘official constitution’ in Saudi Arabia in accordance with the Basic Law of Governance 1992.

12 See http://www.allenovery.com/locations/middle-east/saudi-arabia/en-gb/Pages/default.aspx, accessed: 19 May 2013.

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lawyers to advise clients concerning any risks. In view of the above consid-erations, it may be seen that some English commentators who consider English law “in its majesty greatly superior to anything that could be devised at international level” have, arguably, a strong point.13

The above-presented arguments combined with the great reputation of British law schools and higher education system in general, all together make the UK a dream destination for many foreign students. They go for undergraduate and postgraduate legal studies, short summer schools or longer exchange programs such as the EU-sponsored Socrates Erasmus. Foreign lawyers are allowed to qualify as solicitors via the Qualified Law-yers Transfer Scheme of the Law Society of England and Wales, etc. This ultimately builds better links and mutual relations between the UK and all the countries from which those students have come.

3. Why Study English Law in Saudi Arabia?

In view of the arguments presented above, it may now have become a little bit easier to understand the wisdom behind having some aspects of English law integrated into the existing Saudi legal studies programs.

First and foremost, in light of the above-discussed broad use of common law as the basis of many large-scale transactions, those Saudis who are interested in international commercial law, tort law, dispute resolution, capital markets or banking and finance should definitely consider English law as a part of their legal education. For instance, even if Saudi law gov-erns a contract, the forum for arbitration might be the London Court of International Arbitration. It is yet another issue whether or not a foreign award in such cases will be enforceable in Saudi Arabia. Not to mention that under the Saudi Arbitration Law 2012 governmental authorities are not permitted to resolve their disputes through arbitration (subject to approval of the Council of Ministers). This ‘simple’ case illustrates why it might be important for a Saudi lawyer to have a good understanding of English and other international legal concepts alongside Shari‘ah and Saudi regulations.

In general, familiarity with more than one legal system (Saudi and Eng-lish law) and mastering the English legal language during their courses

13 R.M. Goode, “Insularity or Leadership? The Role of the United Kingdom in the Harmonization of Commercial Law”, ICLQ 50 (2001) 756.

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of study will make those Saudi law graduates more competitive in the job market and, of course, help them to provide better services to their future Saudi and English, or international clients. Law graduates from Dar al-Hekma have these assets and advantages over law students from other Saudi universities, in that although they certainly cannot advise on English (or international) law without obtaining prior legal qualifications, they could technically consult within this field. They may further contribute to a better translation of Saudi laws into the English language (a task that has been already initiated by the Saudi government). This can in turn help to make the international business community more familiar with Shariʿah and Saudi rules, which are nowadays seen as unknown in the West.14 In the long term, that could also help attract more foreign investment to Saudi Arabia.

As one learned colleague said, “Law is an organic body of rules and good lawyers help to reshape it”.15 Saudi Arabia needs good lawyers to serve as gatekeepers for the Saudi economy and society. In particular, it is impor-tant for Saudis to get to know English and international law in view of the continuing progress and development of the legal system within their country. Many new and diverse areas of study and practice, such as arbitra-tion law, electronic transactions law, media and Internet law, intellectual property law, tourism law, real estate law, or foreign investment law, are now being developed in line with their Western counterparts (provided they do not contradict the Shariʿah). Other areas could still be explored, for instance, consumer protection, data protection, labour law, immigra-tion law, international law, mediation, etc. Accordingly, studying English law and developing legal skills comparable to those of British students gives Saudi legal undergraduates better foundations for successfully pursu-ing further postgraduate studies in those emerging fields and using their acquired knowledge in Saudi Arabia upon completion of their degrees.

The study of English and international law in the English language is of course essential for those Saudis who are looking for an international legal career. There are many opportunities to develop it. For example, in a diplomatic corps, within the United Nations, the World Bank, some non-governmental organizations, or as a part of a team in one of the major law firms, which are increasingly looking for Arabic speaking and

14 The sources of Islamic law are readily understandable. However, it may be difficult to determine how to find its rules, particularly in the Islamic jurisprudence.

15 G. Slapper, “Is studying law boring?”, The Guardian, 6 August 2012.

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qualified associates who can assist with the multimillion pound Shariʿah-compliant banking and finance transactions structured among London, Dubai and Riyadh.

Furthermore, a law degree is adaptable across the workforce. Many Saudi law graduates do go on to practice law. Likewise, many others, par-ticularly female Saudi law graduates, may use elsewhere those legal skills that a British legal education builds upon (such as advocacy, legal drafting and research, logical thinking, composition and expression of arguments, or using evidence and rules to become successful). Those may be utilized, for example, in the private and public sectors, banks, media, government, schools, academia, or research.

Finally, for the moment, Saudi nationals do not necessarily have to spe-cifically study Saudi law (or have a degree in Shariʿah law) in order to qualify as Saudi lawyers. As in many other countries, foreign law degrees are recognized in Saudi Arabia for the purpose of legal qualification (in compliance with the rules of the Saudi Ministry of Higher Education). Those include equivalent law or Shariʿah degrees from the neighbouring Arab countries (for example, Egypt, Jordan or Lebanon) as well as degrees from the universities in the West. In fact, many Saudi lawyers received their degrees from abroad. Moreover, according to the Saudi Code of Law Practice 2001, practical work experience with law firms (training contracts) for graduates who hold Master degrees in law or the Shariʿah lasts up to 1 year instead of the regular 3 years. PhD degree holders are exempt from the work experience and can qualify based on the respective doctorates in law. Arguably, those flexible rules may prove very helpful in light of the high number of Saudi students who have been taking advantage of the King Abdullah Foreign Scholarship Program opened in 2005 and return home with foreign postgraduate (as well as undergraduate) degrees in law.16 They certainly help to raise the number of much needed practicing lawyers in Saudi Arabia. At present, Saudi Arabia, which is in the midst of its eco-nomical as well as judicial and legal reforms initiated by King Abdullah in 2007, has remarkably few licensed lawyers (and judges)17 compared to the

16 Around 70,000 Saudi students are on scholarship in the US, while there are around 20,000 in the UK.

17 There were 1,555 (male) judges in Saudi Arabia in 2010; “No women in the judi-ciary”, Arab News, 14 August 2012.

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country’s population.18 Besides, requirements for technical and vocational training for lawyers are said to be planned.19

Indeed, it may not make much sense to focus on English law for those Saudi legal students whose legal and other interests do not lie in transac-tional work that would typically involve some foreign element (although, arguably, there are some areas of similarity between English and Saudi law). Shariʿah law and Saudi regulations remain at the core of the Saudi legal system, and it is vital for any legal studies program in Saudi Arabia to cover those in full. On the other hand, one of the risks with such a mixed legal studies program that combines English and Saudi laws may be that its graduates may be eventually fully familiar with neither English nor Saudi laws. This can in reality make them less competitive in the Saudi legal market. Fortunately, this does not seem to be the case with Dar al-Hekma graduates as their legal studies program is carefully balanced and tailored to Saudi Arabia’s legal system, commercial environment, customs and cul-tural issues.

At the end of the day, law students must always complement the the-oretical training they receive in the classroom with practical hands-on experience. This will help them discover the type of work and area of law that suits them most. In this respect, Dar al-Hekma students are required to complete internships in Saudi law firms for which they receive aca-demic credit. Many graduates are further offered placements at law firms in Jeddah or Riyadh. After last year’s Royal Order that granted female law graduates the right to obtain their lawyer’s license, they are now also able to start practicing officially as ‘trainee lawyers’ and, hopefully, fully qualify later on.

4. Conclusion

In conclusion, it is easy to understand that a Saudi law graduate with an intensive understanding of English law, in conjunction with Shariʿah and

18 Saudi Arabia’s population is around 29 million. Only 2,120 (male) lawyers were licensed in 2013 while 21 Saudi women are presently trainees in the Saudi firms; “Saudi law firms to train women”, Arab News, 24 May 2013. However, over 1,000,000 ‘legal prac-titioners’ work in Saudi Arabia without a license; “Lawyers want their rights protected”, Arab News (21 July 2012).

19 To be provided, amongst other, by the Saudi Law Training Center in Mecca; http://www.sltc.sa, accessed: 19 May 2013.

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Saudi regulations, will be highly valuable in the legal market. For that, Dar al-Hekma law students even received the blessing of British Prime Minis-ter David Cameron during his visit to their college last fall. Teaching and studying Saudi law in comparative perspective with English law has defi-nitely become more meaningful for Saudi women, since they now have clearer prospects to obtain their lawyers’ licenses. The number of female law students and lawyers is thus expected to rise. Those Saudi women who are unable to travel abroad for their legal education now have this unique opportunity to study English law in their home country.

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