Despite facing severe drought and consequently reduced agricultural production, Uruguay remains stable, economically and politically. A large proportion of Uruguay’s economy is supported by agricultural exports; over 80% of the country’s exported goods are agriculture-based products. From October 2022 to August 2023, the country was hit by drought and, as a result, its economy grew by only 0.4%. However, thanks to its historically sound economic and political situation, the country is expected to bounce back in 2024. Economic growth is set to reach 3.2% in 2024, as the agriculture sector recovers from the drought and exports increase once again.
The country is also gearing up to general elections scheduled for October 2024. Polls in March 2024 showed in favour of FA, Broad Front, the party of the current president. With elections approaching, the government has been strongly encouraging project development. The energy sector has been a particular focus, both in the political and legal spheres, and law firms have noted increased interest from clients in energy and infrastructure projects. Several law firms have also been active in M&A in the energy space; the wind and solar sectors are particularly prolific for the sale and acquisition of projects.
The hydrocarbons space has been another active area for the legal market. Teams have been advising major players in the oil and gas market on the signing of contracts with state-owned energy company ANCAP for four offshore blocks for oil and gas exploration.
The government continues to follow its green hydrogen roadmap, first presented in June 2022, with a focus on decarbonisation and an established green hydrogen industry. Firms have been actively advising companies on entering the industry and are starting to see projects develop. A key project is the state’s $4bn green hydrogen and e-fuel facility in the department of Paysandu, with work set to begin in 2024.
Ferrere and Guyer & Regules continue to dominate the Uruguayan legal market. These two full-service firms remain at the forefront of the majority of practice areas. Since Dentons Jiménez de Aréchaga became part of Dentons in 2020, the firm has continued to gain traction in the market, growing its presence across all practice areas. It remains one of the few international firms operating in Uruguay, alongside Deloitte S.C., which focuses the majority of its practice on tax.
The rest of the market is comprised primarily of domestic firms. Posadas and Hughes & Hughes have broad offerings, with both also continuing to push into the energy sector. Bergstein Abogados, Bragard Abogados and Brum Costa Abogados are other mid-size firms that are active across multiple practice areas, along with Castellan Abogados.
The IP field remains an important one in the Uruguayan legal market. Cervieri Monsuárez continues to cement its position in this area and there are several other boutiques of note, including Fischer Abogados, Fernández Secco & Asociados and ClarkeModet.
Following their entry to the Uruguayan market in 2023, SYLS Ferrari, Hessdörfer Tax & Corporate and Ecija Uruguay continue to establish themselves in key practice areas, with SYLS Ferrari being one to watch in the corporate area and the latter two active in tax. More recent activity saw UK-Argentine firm Dechamps International Law initiate its Uruguayan presence with the opening of a Montevideo office led by dual-qualified (Argentina/New York) former Freshfields Bruckhaus Deringer LLP senior associate, arbitral specialist Juan Pomés, as partner in charge - effective as of July 2024.