Strategic GCC Consulting Market Poised to Surge Above $4bn Mark, Boosted by Transformational Projects

The Gulf Cooperation Council (GCC) consulting market is expected to surpass $4 billion in revenue this year, registering a staggering $1 billion rise in just two years. The robust regional growth is driven by major transformational projects aimed at supporting economic diversification. In 2021, the consulting market in the region saw a substantial 15.9% expansion, reaching a staggering $3.87 billion, with all sectors registering double-digit growth. Among the countries, Saudi Arabia’s consulting market grew the fastest, recording a growth rate of 17.5% and reaching a historic revenue of $2.1 billion.

Unprecedented Economic Growth in GCC

The GCC’s economy experienced a sharp upswing last year, buoyed by improved tourism and travel, along with an upsurge in oil prices. Saudi Arabia, the largest economy in the Arab world, witnessed the highest annual growth rate among the world’s 20 largest economies in 2022. The country’s economy expanded by a noteworthy 8.7% last year, with the strong performance of its non-oil private sector being a significant contributor to growth. The kingdom is currently engaged in a sweeping economic diversification drive under the Vision 2030 agenda.

The UAE’s economy grew by a remarkable 7.6% in 2021, the highest in 11 years, and is anticipated to expand by 3.9% this year and 4.3% in 2024, according to the UAE Central Bank. The World Bank estimates that the six-member bloc grew by an estimated 7.3% in terms of gross domestic product last year, with the increase in oil prices providing a boost.

Industry Sectors and Surge in Demand for Technology Companies

In terms of sectors, financial services and public sector consulting grew by 15.4% annually in 2022, with cybersecurity consulting services recording the fastest growth at 19.4%. Healthcare and pharmaceutical sectors also posted robust growth for consulting services. The report further indicated that technology companies are in high demand, with 62% of clients expecting to increase their usage in the coming 12 months.

Foreign Direct Investment (FDI) Levels

The GCC is rapidly emerging as one of the world’s most profitable destinations for foreign direct investments, which, in turn, is bolstering the consulting market. According to industry insiders, almost all consulting clients (99%) said that overseas investments in the region are having a positive impact on their organizations. As a result, consultants are supporting businesses in initiatives related to growth, new geographies, regulation, offerings, and diversification.

Bright Outlook for GCC Consulting Market

With long-term economic plans such as Vision 2030 reaching the implementation phase, the GCC consulting market is poised to continue its double-digit growth in 2023, with technology and strategy services remaining in high demand. The region’s economic ambitions, coupled with favorable oil prices, have led to an increase in both the volume and complexity of work, particularly in the areas of digital and organizational transformation.

Conclusion: Surging GCC Consulting Market

The GCC consulting market is witnessing unprecedented growth as major transformational projects take shape to support economic diversification in the region. Saudi Arabia leads the growth rate, followed by the UAE, Qatar, Oman, Bahrain, and Kuwait. The demand for technology companies is surging, with robust growth in cybersecurity consulting services. The high FDI levels in the GCC are also fueling the consulting market. The outlook for the consulting market remains bullish, with continued double-digit growth anticipated in 2023. With the GCC’s long-term economic plans and the favorable oil prices, the consulting market is expected to grow rapidly, with increasing complexity and demand for digital and organizational transformation services. The GCC consulting market is becoming one of the most lucrative destinations for foreign direct investments, making it an attractive option for global investors.

In conclusion, the GCC consulting market is experiencing rapid growth, driven by major transformational projects aimed at supporting economic diversification. The surge in demand for technology companies and cybersecurity consulting services, coupled with the high FDI levels, has bolstered the consulting market. With the favorable economic conditions and the implementation of long-term economic plans, the GCC consulting market is poised for continued double-digit growth in 2023 and beyond.