International trade in legal services boosts UK economy

The report, commissioned by the UK Ministry of Justice (MoJ), highlights the growing value of international trade in legal services to the UK economy.

At a glance:

• the legal services sector was worth £45.3 billion in 2022, representing growth of nearly 200% in real terms since the late 1990s
• exports reached nearly £9 billion in 2022 against £2.2 billion in imports. This is a substantial increase from 1997 when exports and imports stood at just under £1 billion and £286 million respectively
• legal services accounted for up to 2.5% of total UK business services exports in 2023

Our latest international data insights report reinforces this economic impact, citing a £2.4 billion surge in UK legal services exports between 2020 and 2024.

UK remains a jurisdiction of choice

The MoJ report credits the flexibility and adaptability of English and Welsh law with helping to reaffirm the UK’s position as a top jurisdiction of choice.

The UK’s courts and alternative dispute resolution institutions remain in strong demand thanks to their quality and efficiency.

In 2023-24, around 75% of cases in the Commercial and Admiralty Court’s overall workload involved at least one international party.

Figures cited in our data insights report also show the London Commercial Court delivered 196 written judgments between October 2023 and September 2024 – more than any other major commercial court.

An open market for international firms

The UK is one of the most open legal economies in the world for inbound services, according to the MoJ report.

This has led to foreign law firms establishing around 200 offices in the UK, with 55% choosing to become regulated so they can offer English and Welsh legal services.

Of the firms with offices in England, 25 have chosen to become alternative business structures, further demonstrating the appeal of the UK’s open legal market.

The global footprint of UK firms

The MoJ report emphasises that a diverse range of UK firms engage internationally, contributing to the UK economy in a variety of ways.

Some firms focus on establishing offices in other countries or providing services cross-border. Others support clients seeking legal advice in the UK or specialise in offering arbitration services overseas.

For firms establishing an overseas presence, the footprint is global.

UK firms have around 500 offices in 50 countries, including:

• 214 offices in Europe
• 100 offices in Asia
• 61 offices in the Middle East and Gulf

Interest in qualifying as a legal professional in England and Wales is also high. Every year, between 500 and 1,000 foreign lawyers dual qualify as UK practitioners.

Working together across borders

The MoJ report underscores the importance of UK law firms working internationally alongside local lawyers and firms.

These relationships enable firms to share expertise and help strengthen the UK sector.

The report mentions two programmes we have been proud to support:

• Lord Chancellor's Training Scheme for young Chinese lawyers
• International Lawyers for Africa

The strength of English and Welsh law

The relationships between UK and overseas firms have helped promote English and Welsh law as a law of choice internationally.

English and Welsh law underpins international contracts worth trillions of pounds and is estimated to govern 40% of global corporate acquisitions.

It is also widely used in international financial centres in the Gulf and Central Asia.

Research cited in our data insights report found around 40% of global business and financial transactions are governed by English law.

Pursuing opportunities abroad at home

Overall, the MoJ report is optimistic about the growth an open and competitive legal market brings to the sector and the UK economy more broadly.

For our members, it presents an opportunity to expand their international work from within the UK, by engaging with the well‑established global legal community based here.