Litigation funding in the Middle East and North Africa is expected to move decisively into the mainstream by 2026, as regulatory clarity, arbitration reform, and growing commercial awareness reshape how disputes are financed across the region. What was once viewed as a niche or unfamiliar concept is increasingly being recognized as a practical tool for managing risk, unlocking claims value, and improving access to justice in complex commercial matters.

An article in WinJustice Knowledge Hub outlines how litigation funding is evolving into a recognized asset class within the MENA legal ecosystem. The piece highlights how improved regulatory environments and more sophisticated arbitration frameworks are helping normalize third-party funding, particularly in international arbitration and cross-border disputes. Claims are increasingly assessed not simply as legal battles, but as financial assets that can be monetized and strategically managed. This shift is especially relevant for businesses facing capital constraints or seeking to preserve cash while pursuing high-value disputes.

The article also emphasizes the role of localized expertise in accelerating adoption. WinJustice positions itself as a regional player focused on aligning international funding practices with local legal cultures, court systems, and arbitration centers. By working closely with regional law firms and dispute resolution institutions, funders are helping bridge the gap between global capital and local claimants. Insolvency-related disputes and asset recovery cases are identified as particular areas of growth, reflecting broader economic and restructuring trends across the region.

As litigation funding becomes more familiar to courts, counsel, and corporate clients, the MENA market appears poised for accelerated growth. Increased competition among funders and greater sophistication among claimants may also lead to more standardized pricing and structures.

Pogust Goodhead, the high-profile claimant law firm behind a number of major group actions, has warned of material uncertainty over its ability to continue as a going concern after publishing long-overdue financial accounts. The disclosure adds another layer of scrutiny to a firm that has been at the centre of some of the largest and most complex funded claims currently working their way through the courts.

An article in City A.M. reports that Pogust Goodhead filed its accounts for the year ending December 31, 2022 well past the statutory deadline, with the documents including a statement from directors acknowledging significant financial uncertainty. According to the filing, the firm remains dependent on securing additional funding and successfully progressing large-scale litigation in order to meet its obligations as they fall due.

The accounts show that Pogust Goodhead continues to operate at a loss, reflecting the capital-intensive nature of large group actions that can take years to reach resolution. The firm has been involved in headline cases, including environmental and consumer claims, where substantial upfront legal costs are incurred long before any recovery is realised. Directors noted that delays, adverse rulings, or difficulties in accessing external capital could materially affect the firm’s financial position.

Despite these warnings, the firm stated that it is actively engaged with funders and other stakeholders and believes there is a reasonable prospect of obtaining sufficient support to continue operations. The accounts were prepared on a going concern basis, although auditors highlighted the uncertainty as a key area of emphasis rather than issuing a qualification.

The disclosure comes at a time when claimant firms and their funders are facing heightened scrutiny from regulators, politicians, and critics of litigation finance. Financial transparency, funding arrangements, and risk allocation between law firms and third-party capital providers are increasingly under the spotlight, particularly in the context of large, cross-border group actions.