Q1 2025 Legal & Compliance Market Update
The first quarter of 2025 has been one of the busiest we’ve seen in recent years. With new annual budgets released in January, increased interest from multinationals and continued local government investment, hiring activity across both legal and compliance functions accelerated quickly, marking a confident start to the year.
Legal: Growth, Autonomy, and Global Search
A key legal hiring trend this quarter has been the focus on number two hires. These are strong, autonomous lawyers who can directly support General Counsel and Chief Legal Officers. These roles require individuals with deep local knowledge, strong commercial acumen, and the ability to take on significant responsibility from day one.
The banking sector, particularly within financial markets, has come to life in Q1. Almost all major institutions have been active in hiring, but a lack of specialised local talent has meant that firms are increasingly looking internationally to fill these gaps. We’ve seen strong demand from global legal hubs including London, Singapore, and Hong Kong.
Abu Dhabi continues to lead the way in terms of legal hiring. The city remains heavily focused on M&A lawyers as it pursues growth through inorganic expansion strategies, as well as technology hires as it focuses heavily on the sector. Dubai, which was slightly quieter in 2024, has started to pick back up, particularly in corporate and commercial roles.
Mid-level legal salaries are on the rise again, driven by competition for talent and strong candidate demand. However, General Counsel-level roles continue to be offered at below-market packages, making it difficult for companies to secure high-calibre, locally based talent. If this trend continues, businesses may need to recruit internationally to fill these leadership roles.
Compliance: Senior Talent in High Demand
Senior compliance hiring has been particularly active across SCA, DFSA, and ADGM-regulated entities. There has been a marked increase in demand for experienced compliance professionals, especially those based in or familiar with the DIFC. However, a high rate of turnover over the past 12 months, largely driven by rising salaries and firms failing to keep pace, has created a challenging talent shortage.
ADGM has been a consistent hotspot for compliance recruitment, with ongoing growth in financial services and investment platforms fuelling demand.
One of the most active areas in Q1 has been the digital assets space. There’s been a continued rise in demand for compliance professionals with experience securing VARA licences. However, the talent pool is extremely limited. We’ve found that strong compliance professionals from traditional banking or capital markets backgrounds can often pivot effectively into this space and provide significant long-term value.
Saudi Arabia: Continued Activity, But Increased Outsourcing
Saudi Arabia has continued to be a very active market for legal and compliance hiring, but the focus has increasingly shifted toward securing Saudi national talent. This is driven by more aggressive Saudization targets, which are becoming progressively harder for businesses to meet. As a result, competition for qualified Saudi lawyers and compliance professionals has intensified, pushing salaries upward once again. However, high turnover remains a consistent challenge, particularly in fast-moving sectors like banking and investment. In response, some companies are starting to explore alternative resourcing strategies, including hiring Saudi-focused professionals to be based in the UAE, or outsourcing certain functions to lower-cost jurisdictions such as Egypt.
Looking Ahead: A Busy Q2 Forecast
We expect a strong Q2, underpinned by Q1 budgets and many candidates currently holding offers while they await annual bonus payouts. Once bonuses land, we anticipate another wave of movement, particularly at the mid to junior end of the market.
If you're considering a hire or exploring your next move, now is the time to prepare. The competition for top-tier talent will only intensify in the months ahead.