Driver Trett Digest Issue 21 03.2021 - Flipbook - Page 16
DIGEST | ISSUE 21
to unlock asset value. Law firms see how funding brings
in more work from existing clients and how to attract
more clients by offering an innovative, complete solution
for corporate and law firm litigation portfolios. Insolvency
practitioners see it as a means of financing the disputes of
an insolvent business.
LOOKING FORWARD
Awareness and interest in third party funding continues to
grow. The sheer number of high value construction disputes
in the Middle East, which had difficulties before the pandemic,
has led the industry to look at alternative ways to address its
legal spend on disputes.
There always will be a place for single case funding where a
contractor has a single high value dispute. The construction
and energy sectors are also poised to benefit from the new
and developing corporate portfolio approach to third-party
funding.
We are already seeing a wave of COVID-19–related litigation
and arbitrations. As in other regions, insolvencies and
bankruptcies are likely to follow in the aftermath of the
pandemic. Saudi Arabia and the UAE have modernised their
insolvency legislation. Litigation funders are often essential
in the insolvency context to assist insolvent, distressed or
cash-poor contractors recover receivables.
Joint ventures are another specific feature of business
in the Middle East. Many joint ventures are facing liquidity
challenges. We are seeing an increase in disputes between
joint venture partners.
There is an increase in the demand for third-party funding
from all types of claimants.
Third party funding’s effect on the legal landscape has been
accelerated by the pandemic. The increasing awareness of
funding by CEOs and lawyers, together with regional legal
developments will see significant use of third-party funding
across the Middle East and APAC.
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