< Previous50 November 2025law-middleeast.com FINAL WORD In an era of heightened transparency, this is a company's most crucial asset and lawyers must recognise the evolving reality and remain vigilant THE 'SOCIAL LICENCE' Over the lifespan of any company, it will collect many licences, registrations, and approvals: from incorporation and trade licences to regulatory, tax, trademark, health and safety permits. Each is essential to operate lawfully. Yet, the most important licence of all is the one that cannot be fi led, stamped, or renewed online, and that is the ‘social licence’. Unlike a legal licence, which gives a company permission to operate, a social licence gives it the legitimacy to lead and grow. It is earned through trust from investors, employees, customers, regulators, and communities, both on and offl ine. When neglected, the consequences can be severe: regulatory fi nes, litigation, reputational harm, and the erosion of stakeholder confi dence, customer spending, or even closure. In today’s compliance landscape where there is an alphabet soup of standards from ISO to ESG, regulator expectations and heightened transparency, shortcuts that serve short-term gains are short-sighted. Also, savvy public relation campaigns declaring corporate commitments can only go so far if they are not backed up. A business can lose its social licence overnight, often triggered by one of six infl uential actors gaining prominence in the last years: shareholders and investors (including trustees in non-profi ts and academia); courts, both national The most important licence of all is the one that cannot be fi led, stamped, or renewed online, and that is the ‘social licence’ and international; national contact points and other quasi-public bodies; social media platforms; conscious consumers; and employee activists. This is relevant in the GCC, as governments and regulators advance ambitious net zero strategies, sustainability-related investments and governance agendas meeting more private sector actions too. From Saudi Arabia’s Vision 2030 and the UAE’s Climate Change Law, to Qatar’s ESG disclosure frameworks and Oman’s corporate governance reforms. The region’s sovereign wealth funds, stock exchanges, and central banks are increasingly linking access to capital and investment incentives and reporting with strong ESG and ethical performance. This indicates their recognition that legal and social responsibilities go hand in hand. Also relevant in the GCC and North Africa is the impact of conscious consumers and use of social media especially in the last two years in where corporate giants have suff ered or exited the markets whereas small or local and new businesses have been rewarded for their action or inaction on a range of issues. For lawyers—whether in private practice, in- house, or public service—this evolving reality demands vigilance. Our role now extends beyond legal compliance to refl ect courageous leadership that builds and sustains legitimacy. Ultimately while a trade licence allows a company to exist, it is its social licence that allows it to endure and fl ourish. By Layla El-Wafi ACC MENA board director and senior finance lawyer LME_Nov2025_50_Final word_13750165.indd 50LME_Nov2025_50_Final word_13750165.indd 5027/10/2025 20:3827/10/2025 20:38Next >