How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?

Managing legal aspects during moments of instability or crises requires a proactive and strategic strategy that is consistent with NUPCO’s overall business objectives. As a top provider of medical supplies and logistical services in Saudi Arabia, with plans to enter the private sector, navigating complicated regulatory surroundings while maintaining operational resilience is critical.

As legal counsel, my responsibility is to assist the company in pursuing new possibilities and retaining a competitive advantage. In many ways, adaptation to the challenges and the use of innovative ways to take on the risks is what I am most concerned with. Legal departments are frequently perceived as gatekeepers, but they may also be considered as barriers; therefore, as legal counsel it is critical to develop strategies that allow the organisation to prosper. Here are the key elements of my approach:

The beginning of the process lies in tracing an understanding of business needs and the risk assessment that could portend potential legal challenges during periods of instability. This should encompass an understanding of the legal and regulatory environment, contractual obligations, and external factors such as political changes and economic downturns. Awareness of such challenges in advance will help develop ways to mitigate risks in time and ensure preparedness for diverse scenarios.

Learning from others’ experiences is beneficial. Greene’s book “The 33 Strategies of War” highlights the need of a “controlled-chaos strategy.” Keeping flexibility in our legal strategy is critical. The ability to fit into the changes that may be brought by the new regulation or shifting market dynamics will define our survival. Our legal team should stay in compliant nimbleness so that we are able to adjust our approach as necessary. This latitude would extend to updating or renegotiating contracts or other conditions with suppliers to assure our position by market swings.

This element involves open dialogue and collaboration with the senior management and operational teams to align our legal strategies with the overarching business objectives at NUPCO. The understanding of business perspectives and goals will ensure that, in my leadership role, the legal strategies do not stifle but support the ambition of growth for the company, as it ventures into the private sector. Regular meetings and the sharing of key information help in collectively understanding the legal risks and opportunities, thereby facilitating transparency and the creation of an atmosphere of team spirit.

I recommend carrying out legal awareness seminars for all staff. Proper education for staff on current legal issues, compliance requirements, and best practices builds a culture of awareness that empowers informed judgment. Contract management and workshops concerning regulatory compliance help reduce risks and set people into roles to respond well to unpredictable scenarios.

Building relationships with external law firms and legal industry experts is of paramount importance. It helps us consult and cooperate with external advisors who possess specialized knowledge and an ability to track public opinions on industry trends. Regular consultations with such partners can help to reinforce such legal strategies and, during crises, will create a strong support network during crises.

By implementing these strategies, NUPCO can remain resilient and adaptable, poised for growth even amid challenges. A proactive legal approach is fundamental to our overall business strategy, empowering NUPCO to thrive in uncertain times.

What are the main cases or transactions that you have been involved in recently?

Currently, I am managing some critical legal issues that are core to NUPCO’s expansion and business in Saudi Arabia. Besides this, there are always some risks associated with any business venture, which may be of a financial nature or legal or in some cases a combination of both. These matters include IPOs, setting up of subsidiaries, formulation of policies and procedures manual, IP Protection and Development, and formulation of MOU between the company and the Ministry of Health on how the company will source and manage its supply chain and logistics services.

Another of my major responsibilities is the management of the legal issues that come with the company’s planned initial public offer. This process entails the need to adhere to the regulation provided by the Capital Market Authority (CMA) of Saudi Arabia. I am in consultation with financial and legal consultants, and the relevant authorities to prepare the prospectus, which contains information on the financial performance, the business strategy, and the future of the company. This step is very important because it influences our funding as well as our market image.

In accordance with NUPCO’s strategic development plan, I engage in the legal registration of subsidiaries in Saudi. This includes conducting research, preparing legal papers of incorporation, advising on corporate management responsibilities and the practices of the best performing companies, and confirming with the legal requirements of the country. The formation of subsidiaries helps NUPCO expand the sphere of activities of its operations.

I also participate in the development of policies and procedures of the legal, compliance, and governance departments to avoid future risk. Policies are important because they define what is acceptable behaviour in the workplace, and they also help an organisation avoid legal troubles.

Protecting our intellectual property is another key area of focus. I am working on the registration of trademarks, patents, and copyrights to safeguard our innovations and brand identity. This not only protects our assets but also strengthens our competitive position in the market.

Lastly, I am drafting a collaborative framework between NUPCO and the Ministry of Health for supply chain and logistics services. This framework aims to streamline operations, improve service delivery, and ensure compliance with health regulations. It is essential for promoting a strong partnership that enhances public health outcomes.

In conclusion, these legal matters are integral to NUPCO’s strategic objectives and ongoing success in the evolving landscape of the healthcare sector in Saudi Arabia. Each aspect requires meticulous attention to detail and proactive management to mitigate risks and capitalise on opportunities

What do you see as the major legal challenges for businesses in the region over the next five years, and how are you preparing to address them?

Over the next five years, businesses in Saudi Arabia will face several significant legal challenges, particularly considering the introduction of the Civil Transactions Law. This law is a revolutionary change in the regulations which seeks to simplify the laws and develop a conducive environment for international investors. From a legal counsel perspective, I believe that the introduction of Civil Transactions Law is an opportunity and a challenge to undertake.

On the one hand, the Civil Transactions Law aims at offering clear and unambiguous rules of commercial and civil transactions, which are crucial for confidence in the investment. As Civil transaction law codifies Sharia law principles under a single set of regulations. Earlier, the application of Sharia law could lead to the formation of certain legal uncertainties regarding contract execution and events conditioning. Given the multitude and complexity of Sharia law principles, judges may base their ruling on a different principle, resulting in different outcomes for incidents that share the same facts. The introduction of the Civil Transactions Law is the right direction towards establishing a more certain legal environment, which is important in attracting foreign investment. The investors are likely to be more comfortable when they have a better understanding of their rights and responsibilities and the likely consequences of any litigation.

But the question arises as to how this new legal environment is to be put into practice. Since this law is relatively new there is still some doubt as to how the courts will apply this law in practice. Law firms and in-house lawyers are in the process of finding out the implications of the new rules and there can be disparities as the judges get acquainted with the new regulations. This uncertainty can lead to apprehension among the investors and the businesses that have not fully transitioned to the new changes.

To counter these challenges, our strategy entails the following, we are actively engaging in continuous legal education and training for our team to ensure that we fully understand the shades of the Civil Transactions Law. This knowledge will enable us to provide informed legal advice and navigate the complexities of the new regulations.

Further, building strong ties with external law firms to predict possible changes in judicial rules. This way we can be able to assist NUPCO in avoiding potential risks.

All in all, it can be suggested that, despite the difficulties that are inherent in the Civil Transactions Law and its practical application, there are many opportunities for development and investing in Saudi Arabia. Thus, our goal is to be ready for such changes and to help NUPCO to adapt to this new situation and use the opportunities which appear in this sphere of legal activity.

About…

Sultan Alsaigh is an experienced legal counsel with extensive experience in policy formulation, legal consultancy and governance. At Al Rajhi Bank where he contributed in developing and analyzing the bank policies to conform to the regulatory measures set by the Saudi Central Bank, SAMA. Sultan was very meticulous in analyzing documents pertaining to Islamic facilities, syndication and treasury products and his legal input was invaluable in dealing with legal concerns.

In December 2023, Sultan moved to National Unified Procurement Company (NUPCO) where he oversees IPO management, legal compliance on Capital Market Authority, and works with professionals in preparing effective prospectus. He is responsible for the legal registration of subsidiaries and writes policies for the legal and compliance functions to avoid risks.

Additionally, he played a key role in collaborating with the Ministry of Health to develop a framework aimed at enhancing the supply chain and public health services in the Kingdom of Saudi Arabia, highlighting his commitment to advancing the legal landscape in the country.