DIGEST | ISSUE 21to unlock asset value. Law firms see how funding bringsin more work from existing clients and how to attractmore clients by offering an innovative, complete solutionfor corporate and law firm litigation portfolios. Insolvencypractitioners see it as a means of financing the disputes ofan insolvent business.LOOKING FORWARDAwareness and interest in third party funding continues togrow. The sheer number of high value construction disputesin the Middle East, which had difficulties before the pandemic,has led the industry to look at alternative ways to address itslegal spend on disputes.There always will be a place for single case funding where acontractor has a single high value dispute. The constructionand energy sectors are also poised to benefit from the newand developing corporate portfolio approach to third-partyfunding.We are already seeing a wave of COVID-19–related litigationand arbitrations. As in other regions, insolvencies andbankruptcies are likely to follow in the aftermath of thepandemic. Saudi Arabia and the UAE have modernised theirinsolvency legislation. Litigation funders are often essentialin the insolvency context to assist insolvent, distressed orcash-poor contractors recover receivables.Joint ventures are another specific feature of businessin the Middle East. Many joint ventures are facing liquiditychallenges. We are seeing an increase in disputes betweenjoint venture partners.There is an increase in the demand for third-party fundingfrom all types of claimants.Third party funding’s effect on the legal landscape has beenaccelerated by the pandemic. The increasing awareness offunding by CEOs and lawyers, together with regional legaldevelopments will see significant use of third-party fundingacross the Middle East and APAC.1617
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