Publisher: Maaal International Media Company
License: 465734
The consulting market in the Gulf Cooperation Council (GCC) is expected to reach approximately $4.3 billion in 2024, up from $3.87 billion in 2023. This represents a growth rate of 13.2% compared to the previous year. This rate outperforms global markets such as the United States, whose market grew by 5.2%, and the United Kingdom, which grew by 4.7%.
This growth reflects the growing demand for consulting services in major government projects and economic initiatives launched by Gulf countries, which aim to diversify the economy and develop infrastructure and vital sectors, according to a report by Source Global Research, a research and consulting company.
According to the report, which included a survey of 362 senior executives in the region, manufacturing topped the sectors with the highest demand for consulting, with 94% of establishments in this sector receiving consulting from specialized firms, followed by financial services at 69%, and the technology, media, and communications sector at 59%. Demand for consulting services also increased by 42% in the public sector, 31% in the energy and resources sector, 29% in the retail and services sector, and 9% in the healthcare and pharmaceutical sector, amidst the drive towards digital transformation and enhanced operational efficiency.
Major global consulting firms continue to dominate the Gulf market, with companies such as McKinsey & Company, Boston Consulting Group, Ernst & Young, PricewaterhouseCoopers, Deloitte, KPMG, Accenture, Oliver Wyman, and Roland Berger leading the list of leading consulting providers in the region. Data from the report indicates that 61% of clients choose one of the aforementioned firms when seeking specialized consulting, while 85% of existing clients expressed a willingness to work with their current consultants again. The report confirmed that governments in Gulf countries are moving towards building local capabilities and reducing reliance on foreign consultants, particularly in Saudi Arabia, which is leading efforts to localize the consulting sector as part of Vision 2030, by enhancing the participation of local consulting firms in government and private projects.
Gulf markets are also witnessing a shift in contracting models, with 42% of clients preferring flexible, performance-based consulting contracts over traditional long-term contracts. This reflects the need for more efficient and flexible consulting solutions that align with changing economic conditions.
Despite the significant opportunities offered by the consulting market, high costs and a lack of local talent remain among the most prominent challenges facing the sector. 39% of clients believe that consulting service prices are high compared to the added value, opening the way for local companies to offer services at competitive prices. The region also faces a shortage of qualified local talent in the consulting field, prompting many government and private entities to focus on training and qualification programs to bridge this gap and enhance local expertise. As Gulf governments continue to implement ambitious projects in infrastructure, renewable energy, digital transformation, and cybersecurity, the consulting sector is expected to become a key driver of economic growth and strategic transformation in the region in the coming years, with a growing trend toward integration between global and local companies to enhance sustainability and develop local skills.