Much has been said in the news for years about Saudi Arabia’s economic diversification projects, and this discussion continues today. These projects span various sectors, including sports, information technology, and renewable energy solutions. However, one sector that has largely flown under the radar is consultancy. Here, Saudi Arabia’s consultancy market may be undergoing a quiet revolution.
The country’s economic growth has been nothing short of explosive, reaching a peak of 38% in 2022 alone. It has been open season for consultancy firms setting up in the Kingdom, yet seismic changes now seem imminent. What is driving this shift? And how is the traditional consultancy landscape evolving as a result?
The Boom
The consulting boom, which began in the late 2010s and accelerated after the COVID crisis, was a direct consequence of Saudi Arabia’s decarbonisation plans. Governments in the region have been investing heavily in non-oil sectors such as renewable energy, tourism, technology, and healthcare. Ambitious initiatives like the UAE’s Centennial 2071 and Saudi Arabia’s Vision 2030 aim to establish knowledge-based, sustainable economies.
As a result, companies and government organisations required—and continue to require—professional expertise to implement necessary changes, restructure operations, and explore new revenue streams. Demand soared for consulting firms specialising in strategy, financial planning, digital transformation, and regulatory compliance. Consulting contracts steadily increased as firms played a critical role in helping organisations manage risk, plan investments, and adapt economic policies.
Leading global firms such as McKinsey & Company, Boston Consulting Group (BCG), Deloitte, and PwC swiftly established strong footholds in the Gulf Cooperation Council (GCC) markets. Anyone following business developments would recognise that these firms have been deeply involved in government projects, corporate strategy, and infrastructure development. Given Saudi Arabia’s significant central government role in its economy, these firms have worked closely with the highest levels of government.
Saudi Arabia and the UAE remain the two most active consultancy markets, with Riyadh and Dubai serving as key commercial hubs. Top-tier consulting firms seeking lucrative projects have been drawn to these cities. Saudi Arabia’s rapid economic development and Dubai’s free zones and investment-friendly regulations have created fertile ground for consulting businesses to thrive. Consequently, the sector saw staggering growth of 13.8% in 2023.
The Bust?
By 2022, foreign firms had nearly monopolised the Saudi and Emirati consultancy markets. However, in 2025, Saudi authorities barred PwC from securing further contracts with the country’s Public Investment Fund (PIF).
The decision has not been publicly explained, creating uncertainty. Those firms that entered the Saudi market alongside PwC are now reassessing their positions, wary of potential missteps that may have triggered this restriction.
Technology and data sovereignty have also become pressing concerns. Historically, sensitive state data has been accessible to foreign consultancy firms, but Riyadh has prioritised tightening control. The Saudi Data and Artificial Intelligence Authority is drafting stricter regulations for data processing and storage, particularly for firms handling work related to natural resources or infrastructure.
This ban has reignited debates over foreign consultancy firms’ dominance. Many Saudis argue that these firms’ near-monopoly stifles local opportunities and knowledge development. This sentiment aligns with a broader push for economic self-sufficiency and domestic talent cultivation.
Intensifying Competition
Budget constraints, regulatory tightening, and stricter hiring qualifications are forcing consultants out of their comfort zones. The “Saudization” of the consultancy sector, aimed at nurturing local players, aligns with cost-cutting measures and enhanced data security. This shift has been in motion for some time, as evidenced by two key developments:
- In October 2022, Saudi Arabia’s Ministry of Human Resources and Social Development mandated that by March 2024, at least 40% of employees in the consultancy sector must be Saudi nationals. This policy targets key professions, including financial advisory specialists, business consultants, cybersecurity experts, project managers, and engineers.
- By mid-2024, industry observers noted a steady emergence of new Saudi consulting firms. While this transition has required significant investment in training, it ensures a reliable pool of domestic firms capable of competing with global players.
A natural progression is unfolding: Saudi nationals working in international consultancy firms gain expertise and later transfer their knowledge to domestic firms. These homegrown firms, in turn, train new hires, mirroring the development model seen in China’s heavy industries during the mid-to-late 20th century.
Recruitment specialist Azeem Zainulbhai commented in 2022 on the 40% rule:
“This move means less reliance on foreign experts in key fields like finance, project management, and cybersecurity. Essentially, it’s about creating more jobs for Saudis in critical, high-paying sectors and ensuring they are well-trained for these roles. The ultimate goal is to enhance project management and business practices tailored to Saudi culture and regulations, stimulate private sector growth, and build a knowledge-based economy—ultimately making companies more competitive globally.”
This nationalistic drive has merit. Skilled local professionals will be essential to sustain the economic transformation already underway in Saudi Arabia.
Economic Pressures and Strategic Shifts
Another factor influencing Saudi Arabia’s stance on consultancy is the recent decline in global oil prices, which many analysts predict will persist. As a major oil exporter, Saudi Arabia faces reduced revenue, leading to tighter government budgets. Against this backdrop, the Public Investment Fund implemented the PwC ban, though its precise rationale remains unclear. Whether the full reasoning will ever be disclosed remains to be seen.
The ban has thus rekindled discussions about international consultancies’ dominance. Many Saudis are upset about what they perceive to be a monopoly by these companies, claiming that it hinders the growth of local possibilities and knowledge. This opinion supports a more general demand for economic independence and the development of domestic talent.
The Future of Consultancy in Saudi Arabia
Consultancy is an often-overlooked industry, yet it plays a crucial role across all economic sectors. Both public and private entities rely on consultants for strategic direction, whether in renewable energy, infrastructure, defence, or beyond.
The advice provided by consultants directly influences policy and investment decisions, making the fees they command particularly significant. However, excessive reliance on foreign consultants—especially when they charge exorbitant fees—poses challenges.
Moreover, domestic consultants inherently possess a deeper understanding of national regulations, culture, and market conditions. This, of course, assumes they can match the quality and expertise of their foreign counterparts. Saudi Arabia’s drive to curtail foreign consultancy dominance is not merely about economic nationalism.
It is a strategic effort to foster an environment where local firms can thrive. By reducing dependence on international firms and nurturing homegrown talent, Saudi Arabia is working to build a more self-sufficient and competitive consultancy market.
By: Omar Ahmed