At a time when most of the world is struggling as a result of macroeconomic and political uncertainty, the GCC region continues to stand out as a beacon of hope for the global consulting market. According to our forecasts, spending on professional services in the Middle East will grow by 12% in 2025 (compared to 6% in North America and APAC and 5% in Europe) and reach US$48bn. Driving much of this growth will be the GCC region and its trillion-dollar plan to diversify the regional economy.
Data from our upcoming GCC Market Trends report, gathered from 150 senior buyers of consulting services, indicates that the speed of diversification will only accelerate over the coming year, generating a boost for an already white-hot consulting market. This appetite for diversification is region-wide, with all markets planning significant measures to boost diversification away from fossil fuels.
We see no signs of plans to rein in any of these ambitious economic goals; not a single respondent said that they decreased spending on diversification in the past year , which emphasises how integral this policy is to the region’s future economic prosperity.
Respondents from some of the largest economies in the region, like Saudi Arabia, tell us they are planning to significantly invest in diversification initiatives in the coming year. This comes as no surprise, as deadlines related to Vision 2030 are fast approaching as well as vast new infrastructure projects being added to the pipeline. This is particularly the case for preparations for the Asian Winter Games in 2029 and the FIFA World Cup in 2034, both to be held in Saudi Arabia.
As deadlines become more critical and the problems that clients face become more complex, consultants need to offer the right blend of services to meet clients’ needs. This will make it more important that firms have the local capacity and specialist expertise to benefit from some of the world’s most lucrative contracts. With some of the fastest-growing service lines being around data & analytics as well as civil engineering, firms should pay special attention to having in-house expertise in these fields.
Qatar is another market where clients suggest there will be a significant increase in spending on diversification initiatives, including an aim to entice financial services firms to the country, in particular companies with a private equity focus. It seems that the UAE is further along its diversification journey, with most respondents saying any increased investment in diversification still being sustained at hight rates just not at the same level as other countries in the region.
Diversification itself is touching a whole spectrum of sectors, with financial services and infrastructure being the biggest winners. However, investment is strong across the board as the region sets its sights on being a global hub for a whole range of services, such as emerging technologies and healthcare.
Although this spells good news for the professional services market, firms should also be aware that the market is reaching a state of maturity in which fierce competition is leading to downwards price pressure. Clients are now only willing to pay premium prices for services that create measurable value within their business. This is why consultants should look to invest in expertise that clients currently lack in-house, focusing on key areas such as technology infrastructure and productivity savings that are essential to any diversification project within the region. As clients also want to be leaders in the sectors of the future, firms should also look at how their offerings around generative AI and machine learning can actually have real-world benefits to clients within the GCC.
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