Sponsored briefing: Looking to the future

Mehmet Selim Yavuz and Murat Uyanık of Yavuz Uyanık Attorney Partnership discuss how the legal market has been affected by the country’s economic climate and their expectations for areas of growth

Given Türkiye’s current economic problems including the devaluation of the currency and high inflation, how has this been affecting your firm throughout 2023 and into 2024?

Our attorney partnership has managed to grow in a delicate manner during 2023 which could be defined as one of the most economically devastating years. The exchange rate and inflation crises caused by the interest cuts of the Central Bank of Türkiye had significantly damaged Turkish Lira which deeply affected the purchasing power of our employees. We unfortunately needed to revise our rates and we adjusted our ongoing arrangements with our clients. New business opportunities have also emerged as economic problems have affected contractual relationships, which later turned into legal proceedings. Therefore, it could be stated that even with macroeconomic conditions we managed to grow our business. Unfortunately, the year 2023 did not start very well for the Turkish people and economy.

What adjustments have you made in the current climate – fees, staffing levels etc?

Despite the negative environment, our attorney partnership has increased its number of attorneys. We attribute this to the fact that we have a dynamic and enthusiastic team that adapts easily to innovations and conditions. We have also initiated a new benefit system for our attorneys in which we aim for a fairer distribution to our staff, which supports them during these desperate times and strengthens their motivation. We had to adjust our attorney fees in an applicable manner in order to successfully fulfil the legal necessities of our clients in an adequate manner while maintaining fair pricing.

How have your firm and your clients mitigated these risks?

Our clients have managed to mitigate financial risks through currency-based hedge mechanisms. Such mechanisms enabled certain firms to make significant profits.

Our attorney partnership has managed to mitigate financial risks through increasing its exposure, establishing new business connections with foreign investors and companies and taking them in as clients. Even though budget cuts were considered as an idea to mitigate financial risks, we did not require them due to the hard work of our litigation and insurance departments.

What are your expectations for both the economy and the Turkish legal market in 2024?

When evaluating the year 2023, we observed that the elections in Türkiye were eagerly anticipated by everyone. The economic crisis and government policies regarding this crisis have become fundamental factors for people. Despite not leaning towards change, we have always acknowledged Türkiye’s young and dynamic population, willing to contribute to production. Additionally, we have witnessed how swiftly Türkiye recovered from the 2001 economic crisis and created a positive environment for investors. Well-trained staff are prepared and eager to contribute.

‘Our attorney partnership has managed to mitigate financial risks through increasing its exposure, establishing new business connections with foreign investors and companies and taking them in as clients.’
Mehmet Selim Yavuz and Murat Uyanık, Yavuz Uyanık Attorney Partnership

Which practice areas are busy, ie the biggest areas for your firm, and why?

Our attorney partnership has turned into a notable legal brand in terms of fast and effective legal remedies throughout the country, due to our vast attorney network spread all over Türkiye. Especially as an attorney partnership with an ambitious and well-oriented litigation team, we provide qualified legal support in all areas of private law and public law. The fields of insurance and reinsurance law, labour law, dispute resolution and consumer law are the areas in which we are particularly recognised.

Can you give us an overview of the legal market in İstanbul? What are the key growth areas and sectors and how do you see the future of the region over the next 12 to 24 months?

The legal market in Istanbul is an expanding market with resourceful and experienced legal firms along with newer law firms established by former associates of the experienced legal firms. Even though there are many law firms located in Istanbul, only a handful of them are capable of rendering internationally acclaimed services. We believe the legal market will continue to expand over the next 12 to 24 months, however the distribution of such expansion will not occur equally. The result of the past elections was also a huge factor for the likely increase in foreign investment. Experienced and resourceful law firms like us will continue to attract international and national companies that are seeking adequate legal services due to the fact that the ongoing economic problems will cause newly established law firms to struggle to form an organisation in order to provide assistance to the needs of big companies; experienced law firms are already organised in a disciplined manner.

Are there any notable deals your firm has completed in the last 12 months that you would like to mention?

As a local firm mostly focused on litigation, we proudly finished and finalised some of our multimillion-dollar cases, in which our clients such as international banks or pharma companies were involved.

How much of your firm’s work is international? Can you give any specific examples of work your firm has completed in international jurisdictions?

Forty percent of our business is considering international jurisdictions and 60% of our business is domestic. However, it should be noted that almost all of our domestic clients are Turkish companies operating with foreign capital.

‘The importance of ESG criteria is being inferred by businesses operating within Türkiye. Many well-known Turkish companies are announcing ESG projects for the new future.’
Mehmet Selim Yavuz and Murat Uyanık, Yavuz Uyanık Attorney Partnership

There has been a surge in Environmental, Social and Governance (ESG) and sustainability matters in Türkiye – how much more growth do you see happening in 2024?

The importance of ESG criteria is being inferred by businesses operating within Türkiye. Many well-known Turkish companies are announcing ESG projects for the new future. Most of the companies operating within Türkiye have also announced monetary donations and projects that are going to be used in order to rebuild the southern areas of Türkiye that had been affected by the recent earthquake. Companies in Türkiye have understood that they are also an integral part of Turkish society, and they must perform notable work to some extent in order to be a respected party of the society.

How much progression has been made in the country on the issue of diversity and inclusion?

The Presidency of the Republic of Türkiye along with the Ministry of Labour and Ministry of Family and Social Services have undertaken notable work regarding increasing women’s employment and women’s entrepreneurship. However, such notable work must be supported by the private sector, especially banks, in order to have actual progress in the fields of diversity and inclusion.

What key Turkish legislation in 2024 will affect your clients and drive advisory work?

There is a general understanding that the work and legal areas covered by a legal firm are based on its client profile. We mostly render legal services for big companies, insurance companies, banks and other financial institutions; therefore it could be stated that the Turkish Commercial Code, Turkish Code of Obligations and Enforcement and Bankruptcy Code have a very wide scope of application and often affect our clients. Considering the fact that our clients also interact with daily consumers, the Law on Protection of Consumers is also an integral part of our legal services. However, law can be considered as a practice with constant changes; we need to follow new developments in Turkish law along with international jurisdictions and always keep our current information up to date. We also provide daily legal evaluations to our clients about amended rules and regulations that affect their business. In addition, we prepare explanatory articles about new legal developments that can be accessed from our website and LinkedIn page.