In a landscape where economic growth has waned in major global hubs with reports of top consulting firms laying off staff globally, the consulting market in the Gulf Cooperation Council (GCC) region is bucking the trend. According to the latest report by Source Global Research, the GCC consulting market witnessed 13.2 per cent growth in 2023, surpassing the $5bn mark for the first time.
With projections indicating further growth, crossing the $6bn milestone in 2024 seems inevitable, predicts the report.
Saudi Arabia leads the rest
Saudi Arabia, boasting the largest consulting market in the GCC, outpaced the overall market with an 18.2 per cent surge in growth, propelling revenues past $3bn.
The momentum was not limited to Saudi Arabia alone, as other countries in the region showcased varying degrees of growth:
- UAE: 15.2 per cent growth, market size of $1.129bn
- Qatar: -9.8 per cent growth, market size of $445mn
- Kuwait: 8.9 per cent growth, market size of $315m
- Oman: -0.3 per cent growth, market size of $156m
- Bahrain: 7.2 per cent growth, market size of $146m
Investment from the public sector remains a potent force driving consulting demand, especially with the implementation of vast megaprojects.
Moreover, the region’s concerted efforts towards economic diversification initiatives have unlocked new avenues for growth, prompting companies to seek external expertise to capitalise on emerging opportunities.
Interstate competition fuels demand
A notable trend emerging is the intensifying competition between GCC member states, with over half of organisations reporting significantly increased competition.
This interstate rivalry underscores a golden opportunity for consulting firms to engage with organisations, offering solutions to navigate the evolving economic landscape.
Amidst the buoyant market, healthcare and pharmaceutical sectors emerged as the frontrunners, witnessing strong revenue growth of 16 per cent and 17 per cent, respectively.
Financial services and the public sector also demonstrated resilience, posting robust growth figures despite their well-established market size.
With the GCC prioritising productivity enhancements and cost-cutting measures, technology discussions have ascended to the forefront.
Emerging technologies such as AI have garnered significant attention, with organisations in Saudi Arabia and the UAE vying to establish themselves as centres of excellence.
Dane Albertelli, senior research analyst from Source said: “This new form of interstate competition demonstrates a clear opportunity for consulting firms operating in the region to engage with organisations and provide them with new services and insights, such as innovative ways to make the most of fast-growing areas of the economy, like tourism and retail.”
Consulting market: Future outlook
As the GCC presses ahead with ambitious diversification agendas, the reliance on consulting services is poised to intensify further.
With nearly half of organisations expressing increased trust in consulting firms, coupled with projections of continued growth, the future looks promising for the GCC consulting market.
Albertelli added: “Along with tight deadlines and the need to stay ahead of rivals, organisations are also transforming their technology infrastructure. This ultimately means that consultants will be in demand for a whole host of reasons, and firms with the greatest breadth of expertise are the most likely to be the most wanted.
“The expertise and value-adding insights that professional services provide are also being recognised by organisations, with nearly half saying their trust in firms has significantly increased in the past year. The proven reputation of consultants in delivering results is another good indicator that they will be in higher demand in the future.”