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?

When faced with periods of instability or crises, a proactive and adaptable legal strategy is crucial to protect an organisation’s interests and ensure its resilience. We focus on three key approaches:

In terms of contractual review and negotiation, assess existing contracts to identify any potential vulnerabilities or risks during the crisis. If necessary, negotiate amendments to contracts to address the changing circumstances. Finally, consider force majeure clauses.

For risk assessment and mitigation, conduct a thorough assessment to identify potential legal risks that may arise during the crisis, and develop mitigation strategies by creating contingency plans. It is crucial to stay informed at all times by monitoring legal developments.

As for regulatory Compliance, make sure to understand applicable laws and regulations, and seek guidance if needed to ensure compliance.

Aligning Legal Strategy with Business Strategy is essential for an organisation’s long-term success. Understand the business objectives, identify the legal implications of these and develop a legal roadmap. Don’t be afraid to regularly review and adjust this.

By adopting this proactive and adaptable approach to legal management, we mitigate risk in our group, protect its interests, and emerge stronger from periods of instability or crises.

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

Recently, we have finalised the acquisition of Crystal Hot Sauce Brand from Baumer Foods USA. The in-house legal team of Mezzan led the negotiations, drafting and execution of this significant licensing agreement that has secured perpetual rights for Mezzan Holding to manufacture, sell, and distribute Crystal hot sauce products globally, excluding North and South America. This transaction was particularly complex due to the need to navigate various regulatory hurdles and ensure compliance with international standards. My expertise in license and manufacturing agreements, especially in areas such as intellectual property law, food and beverages industry in Kuwait and the GCC as well as international business was crucial in ensuring a successful outcome. This strategic acquisition has positioned Mezzan for substantial growth in new markets and has strengthened our brand portfolio. It also opens doors for potential future collaborations with Baumer Foods, USA.

What are the current trends in M&A activity in the Middle East, and which sectors are seeing the most growth?

According to PWC, technology, energy, industrial and financial services sectors were the most active in the GCC especially in the UAE, KSA and the rest of the GCC countries. It was the result of the UAE’s business-friendly regulations and streamlined legal framework. Additionally, the country’s sovereign wealth funds remain active in investing in forward-looking sectors both domestically and internationally.

In the case of Saudi Arabia, the country’s commitment to achieving its Vision 2030 objectives, aimed at diversifying the economy away from oil, saw expanded activity in the non-oil private sectors, across the infrastructure, industrial manufacturing, and clean technology industries. Moreover, the enactment of the New Companies Law in January 2023 and the Civil Transactions Law in December 2023, aimed at fostering alignment with Vision 2030 goals and providing greater legal certainty to businesses seeking to operate in the Kingdom, is set to further position it as an appealing investment destination.

Kuwait as well is stepping in the direction of enhancing technology sector forming a strategic alliance with Google Cloud to accelerate its digital transformation. Google Cloud has opened new offices in the country and is working closely with government agencies to support Kuwait’s national vision of 2035. This partnership aims to bring advanced technologies, create jobs, and foster economic growth. Key areas of focus include technology transfer, digital infrastructure development, and capacity building. Additionally, Amazon Web Services (AWS) announced the opening of its office in Kuwait in 2023 as well, also licensed through the Kuwait Direct Investment Promotion Authority (KDIPA), under the State of Kuwait’s Direct Investment Law. The new opening is part of the ongoing investments to help organisations of all sizes in Kuwait, including startups, enterprises, and public sector agencies as they transition to AWS.