CON­SUL­TANCY REV­ENUES IN THE GCC HIT $3.3BN IN 2019

GOV­ERN­MENTS IN THE RE­GION SPENT $1.1BN IN CON­SULT­ING SUP­PORT TO DI­VER­SIFY THEIR ECONOMIES

CEO Middle East - - NEWS -

THE GCC CON­SULT­ING MAR­KET GREW BY 9.9 PER­CENT IN 2019 TO HIT $3.3BN, AC­CORD­ING TO THE LAT­EST RE­PORT FROM SOURCE GLOBAL RE­SEARCH.

Al­most half of that ($1.6bn) was recorded in Saudi Ara­bia, de­spite a royal or­der be­ing is­sued in Septem­ber last year, ef­fec­tively ban­ning gov­ern­ment de­part­ments and agen­cies in the king­dom from us­ing for­eign con­sul­tancy firms.

Zoë Stumpf, head of con­sult­ing mar­ket trends at Source Global Re­search, said the de­cree has not im­pacted ser­vices in Saudi.

“Fol­low­ing royal de­cree in Septem­ber 2019 to ban for­eign con­sult­ing firms from pub­lic sec­tor work, we spoke to a num­ber of firms op­er­at­ing in Saudi Ara­bia,” she said. “Some of these con­sult­ing firms said at the start of 2020 that they were con­cerned about how this could im­pact fu­ture de­mand, and ac­knowl­edged that much would de­pend on full en­force­ment tak­ing place.

“A few other firms were suf­fi­ciently con­cerned that they were fac­tor­ing it into their 2020 plans, though oth­ers were much less wor­ried, and were ex­pect­ing things to be very much busi­ness as usual.”

An­nual con­sul­tancy rev­enues in the UAE were up 7.2 per­cent to $916 mil­lion, while in Kuwait they in­creased 8.8 per­cent to reach $214m.

Gov­ern­ments across the GCC con­tin­ued to in­vest heav­ily in con­sult­ing sup­port to di­ver­sify their economies and re­duce their de­pen­dency on oil rev­enues – with pub­lic sec­tor work ris­ing 10.2 per­cent to hit $1.1bn for the first time in 2019.

Tech­nol­ogy con­sult­ing ser­vices rose 10.7 per­cent to $1.2bn, while fi­nan­cial ser­vices rev­enues grew 9.3 per­cent to $698m.

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