For the past few weeks, the Hildebrandt Institute Blog has been taking a closer look at certain emerging markets and their impact on the global legal industry. Previously, we looked at the market indicators driving law firms to Brazil the increasing significance of Asia in law firm growth strategies, and the competition for top legal talent in Hong Kong. Today, we turn our attention to Turkey and the economic drivers which are attracting a growing number of international firms.
Several economic factors are contributing to an increased interest in Turkey by international law firms. Unlike a number of its European neighbors, Turkey fared reasonably well during the global economic crisis with the country’s banking system managing to avoid a government-funded bailout. After negative growth in 2009, the economy bounced back well in 2010, recording the third-fastest growth rate among G20 countries last year, with an impressive 9% rise in GDP.
Growing interest by foreign firms
In 2009, there were just five foreign law firms operating in the market (White & Case, SNR Denton, Gide Loyrette Nouel , Salans and Curtis, Mallet-Prevost) with White & Case by far the most prominent. The US firm has affiliations with two market-leading local firms: Akol Avukatlik Bürosu in Istanbul, and Çakmak Avukatlik Bürosu in Ankara.
This has more than doubled in the past 12-18 months. 2010 and early 2011 saw the arrival of four new foreign firms: two global powerhouses, DLA Piper and Clifford Chance, who continued their investment in emerging market economies, as well as a number of Central & Eastern Europe-based firms, including Kinstellar (Linklaters’ CEE spin-off) and Austria’s Schoenherr.
Three further firms have recently announced their entry into the market; German firm Graf von Westphalen, the U.S.’s Chadbourne & Parke and most recently, Baker & McKenzie. It formed an exclusive relationship with leading Turkish law firm Esin Attorney Partnership, as well as opening its own foreign office in Istanbul (in Esin’s office space).
The moves have been in response to growing client interest and activity in Turkey, with Baker & McKenzie’s EMEA Chair, Koen Vanhaerents, stating “It has become increasingly clear that Turkey is rapidly growing in importance for our clients”.
Although the presence on the ground of these newly entered firms remains relatively small, a number of the associations formed have the potential to have a strong market impact. Other firms are expected to follow suit, with the CMS alliance recently announcing that it was looking to add a Turkish member to its exclusive alliance network. Continue reading →
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Emily Fisher
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