Dan Fournier: ‘I know they’re [other Canadian firms] watching what Blakes is doing. That’s fine.’
Every day at 4 p.m., as it has been for hundreds of years, the horizon of the Bahraini capital of Manama is punctuated by a departing fleet of shrimp boats, headed out for a night's work.
Canadian lawyer Dan Fournier can see it from his fifth-floor office - an ancient tradition up against a modern backdrop of shimmering, futuristic skyscrapers that reflect the city's status as the Persian Gulf's banking hub.
"They fish all night and they come back in the morning," the Montreal-raised Mr. Fournier said. "You could set your watch to it."
But Mr. Fournier, 56, isn't in Bahrain for sightseeing. The energy lawyer, formerly based in Calgary, now heads up the new Bahrain office of Blake Cassels & Graydon LLP, the first Bay Street firm to physically set up shop in the Persian Gulf. The new office, where seven lawyers work, began operations last year, and Blakes opened a satellite office in the Saudi Arabian city of al-Khobar last week.
The move, which is being watched closely by Blakes' rivals, was clearly aimed at the region's ultra-rich sovereign wealth funds, which are looking for investments in Canada's oil patch. It is also aimed at snagging billable hours from Canadian companies - such as engineering or other oil-related players - trying make deals in the Middle East.
But Blakes also hopes to do more than manage deals that involve its home turf. Mr. Fournier says his firm is competing for its share of the international legal work in the Gulf states, where most big transactions are conducted using British or U.S. law, and British or American law firms.
"We are there to practise law on an international scale, which means that we are not restricting ourselves to any kind of transaction or financing that has a Canadian component," Mr. Fournier said in a recent interview in Blakes' Toronto offices.
He estimated that half of the files they are working on have no Canadian link at all. And while the firm's focus is Saudi Arabia and the other Gulf states, Blakes has at least one mandate linked to Iran, although Mr. Fournier would not elaborate on it.
The move into the Middle East began when Saudi lawyer Saud al-Ammari - a Harvard-educated lawyer who worked for Saudi Aramco and the Saudi embassy in London - came looking for a Western partner in a new legal venture. At a meeting with Blakes lawyers at the 2008 Calgary Stampede, Mr. al-Ammari even joined his hosts in their switch from sober suits to cowboy outfits.
With Dubai's Greek-like debt load making headlines, the region's many billions may have lately lost some of their swagger. But Mr. Fournier says establishing an on-the-ground presence in the region is a smart long-term move. And locals, many of whom have a very high opinion of Canadians and the global reputations of companies like SNC Lavalin and Bombardier, wonder why there aren't more Canucks around.
"Every economic indicator is saying the emerging markets are going to attract most of the capital all over the world in the next two, three, four years," Mr. Fournier said. "And the Gulf is an emerging market. … So, we can be happy playing in our sandbox here, or we can have a more international view of our practice."
Not all of Blakes' rivals say they are rushing to follow suit, according to John Leopold, a senior partner with Stikeman Elliott LLP in Montreal who handles major cross-border deals.
Stikeman Elliott has a long history of reaching beyond Canada's borders, and in 1969 was the first North American law firm to open an office in London. That long established network of contacts can count for more than an address, Mr. Leopold said.
He points to his firm's high-profile clients in the region, which include billionaire Saudi Prince al-Waleed bin Talal, who came to Canada to purchase Fairmont Hotels and a stake in Four Seasons, as well as the two Dubai-based sovereign wealth funds that recently bought a 20-per-cent stake in Cirque du Soleil.
"We have a long history of doing business in that part of the world," Mr. Leopold said. "… We don't have an office in the Middle East. We have no intention of opening an office there. But we do have a strategic plan to cover that market."
But he acknowledged that Stikeman Elliott has no plans to fight for international business with U.S. and British law firms in the Gulf, concentrating only on work linked to Canada.
Still, with so much money in sovereign wealth funds looking for stable investments, major Canadian law firms can't help but pay attention to the Gulf, whether they set up shop there or not.
Mr. Fournier said he knows Blakes' rivals are looking over his shoulder as the firm starts what could become the first wave in a Canadian legal race to the Gulf: "I know we're under the microscope. I know other firms have come into the Gulf. I know they're watching what Blakes is doing. That's fine."
If others do follow, Mr. Fournier said, they will find life in Manama - a city crawling with ex-pats - quite easy. He says the city is open, modern and tolerant, with alcohol on sale in restaurants and stores. Mr. Fournier's wife splits her time between Canada and Bahrain, as the couple have two sons in Canadian universities. And the Bahrainis, he said, have been gracious hosts.
"I got the privilege of being invited to meet the Crown Prince of Bahrain, in the palace. I was a little bit, not nervous, but a little but apprehensive," Mr. Fournier said.
"How was this all going to play out? The guy comes in, 'Dan! How are you? Sit down! Tell me why you picked Bahrain! Did you go to the F1 race?' And it's like, my God, this is a regular guy. But he's a Crown Prince."