Gulf Consulting Market Poised To Surpass $8 Billion Amid Fiscal Tightening

The consulting industry in the Gulf Cooperation Council is projected to reach a valuation exceeding $8 billion this year, marking a 12% growth compared to the previous year. This expansion, while robust, indicates a slight deceleration from the 13% growth observed in 2024, reflecting a trend of tightening public expenditure across the region.

Saudi Arabia, the largest Economy within the GCC, has been a significant contributor to the consulting sector's expansion. However, the kingdom is currently reassessing its extensive infrastructure projects under the Vision 2030 initiative. This reassessment includes a critical evaluation of the substantial costs associated with external consultancy services. The Public Investment Fund , a central entity in driving these projects, has notably imposed a ban on PwC from securing new advisory contracts. This move underscores the government's increasing scrutiny over consultancy expenditures.

Despite these fiscal constraints, Saudi Arabia's commitment to diversification remains steadfast. The kingdom continues to invest heavily in mega-projects such as Neom, an ambitious $500 billion smart city development. Additionally, Saudi Arabia is set to host major international events, including the 2029 Asian Winter Games and the 2034 FIFA World Cup. These initiatives are anticipated to sustain demand for specialized consultancy services, albeit with a heightened emphasis on cost-effectiveness and value delivery.

In the United Arab Emirates, the consulting market has experienced significant growth, driven by a surge in demand for digital transformation and artificial intelligence consulting services. The UAE government has approved a federal budget of AED 71.5 billion for the fiscal year 2025, reflecting a nearly 12% increase in spending compared to the previous year. This budget prioritizes sectors such as education and healthcare, aligning with the nation's strategic objectives to enhance social development and technological innovation.

Dubai's property market, a key indicator of economic vitality, has witnessed remarkable growth, attracting investors globally. The city's residential sales reached AED 120 billion in the third quarter of 2024, with a notable influx of buyers from Europe and North America. This real estate boom has, in turn, fueled demand for consultancy services in urban planning, infrastructure development, and regulatory compliance.

However, the broader GCC region is exhibiting signs of fiscal prudence. Total public spending reached a record $639 billion in 2023, with current expenditures accounting for 85% of this figure. Governments are now focusing on enhancing the efficiency of public spending and implementing credible medium-term fiscal frameworks to ensure sustainable economic growth. This shift towards fiscal consolidation is expected to influence the consulting market, prompting firms to adapt their service offerings to meet the evolving needs of their clients.

The International Monetary Fund has highlighted the importance of digitalization and AI as catalysts for productivity growth in the GCC. Consulting firms specializing in these areas are likely to see sustained demand as governments and businesses seek to leverage technology to drive efficiency and innovation. This trend aligns with the region's broader economic diversification efforts, aiming to reduce dependency on oil revenues and build knowledge-based economies.

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