Gulf consulting market surpasses $5 billion, defies global downturn

KUWAIT CITY, April 15: A recent report from Source Global Consulting revealed a notable growth of 13.2% in the consulting market across Gulf countries in 2023, surpassing $5 billion for the first time, reports Al-Qabas daily.

This growth trend defies the global economic downturn and widespread employee layoffs observed in consulting firms worldwide.

The report highlighted Saudi Arabia as the largest consulting market in the Gulf region, experiencing an 18.2% growth rate and generating revenues exceeding $3 billion in 2023. The UAE followed closely, securing second place with a growth of 15.2% and revenues of $1.1 billion, while Qatar ranked third with a growth of 9.8% and revenues of $445 million.

Kuwait claimed the fourth position in the Gulf consulting market, achieving a growth rate of 8.9% and revenues totaling $315 million in 2023. Oman followed with a modest growth of 0.3%, generating revenues of $156 million, while Bahrain trailed with a growth of 7.2% and revenues of $146 million.

The report attributed the sustained demand for consulting services in the Gulf to significant public sector investments, particularly driven by the implementation of large-scale projects. Economic diversification initiatives across the region have also opened up new growth opportunities, leading to increased demand for external expertise among Gulf countries.

In addition to traditional sectors, such as financial services and public sector consulting, emerging areas like healthcare and pharmaceuticals have seen substantial growth. Healthcare consulting witnessed a robust 16% growth, while pharmaceutical consulting grew by 17% in the past year.

Moreover, the report highlighted the increasing emphasis on technology-related consulting, particularly in emerging technologies like artificial intelligence. Gulf countries, notably Saudi Arabia and the UAE, are striving to establish themselves as centers of excellence in these fields, driving demand for technology consulting services.

Looking ahead, as Gulf countries continue to implement ambitious economic diversification plans, reliance on consulting services is expected to increase further. With a growing confidence in consulting firms among regional companies and expectations of continued economic growth, the future appears promising for the consulting market in the Gulf countries.