CONSULTANCY REVENUES IN THE GCC HIT $3.3BN IN 2019
GOVERNMENTS IN THE REGION SPENT $1.1BN IN CONSULTING SUPPORT TO DIVERSIFY THEIR ECONOMIES
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.