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By Mostafa Ali & Salomé Nabeth

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The Shifting Sands : Gulf Consulting Reimagined

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A significant transformation is underway in the Gulf's consulting sector, with Saudi Arabia leading a strategic realignment tied to Vision 2030. The old model of importing global solutions is yielding to one demanding deep localization and trust. The Middle East's management consulting market, valued at $10.27 billion in 2024 and projected to hit $12.77 billion by 2029 (CAGR 4.46%), sets the stage. Saudi Arabia, with the highest regional growth of 17.5% in 2022 and a market share of $2.105 billion then, is a dominant force.

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Initially, the consulting boom was driven by national plans for economic diversification and decarbonization, attracting global firms to Saudi Arabia and the UAE. Now, "seismic changes now seem imminent". This recalibration is about economic sovereignty, reducing reliance on external expertise for critical projects. The emphasis on a "regionally rooted model," "Saudization," and "IP Ownership" within a "Saudi-Led Consulting Stack" reflects this. Vision 2030 aims to diversify away from oil; relying heavily on foreign entities without deep local integration would hinder true economic self-determination.

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International firms face a "consulting trilemma” : maintaining global standards, achieving local relevance (cultural, regulatory), and managing costs under localization pressures. "Cultural alignment" and "Saudization" demand more than superficial adjustments, necessitating innovative operating models like the "glocal model".

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Catalysts of a New Era : Vision 2030 and Market Realignment

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Vision 2030 is the primary engine for this new era, highlighted by the Public Investment Fund's (PIF) suspension of new advisory contracts with PricewaterhouseCoopers (PwC) until February 2026. Mostafa Ali from Opals Consultancy called this a "strategic reorientation" of expectations for the sector. The ban, linked to a "client matter," covers the PIF and its roughly 100 subsidiaries, impacting PwC's significant Middle East market (fastest-growing, $2.5 billion revenue in 2024) and Saudi Arabia's $3.2 billion (2023) consulting market.

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This move could slow some Vision 2030 projects but also creates opportunities for competitors and may lead to stricter compliance regulations. The PIF's action signals new expectations regarding national alignment, value delivery, and accountability. Four key forces drive this strategic reorientation :

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1. Outcome-Driven Delivery : Vision 2030 demands tangible, fast-tracked results in sectors like tourism, AI, and clean energy, favoring rapid pilots over lengthy studies. NEOM, for instance, prefers a four-week practical solution to a six-month feasibility study.

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2. Saudization and Talent Retention : Strict nationalization quotas (e.g., a general 40% in consulting firms) compel firms to prioritize Saudi talent, aiming for knowledge transfer and a sustainable local workforce, expected to create over 8,000 jobs and retain ~$1.2 billion annually in the economy. Specific targets include 35% in engineering consultancy, 30% in financial advisory, 30% for engineering firms (5+ professionals) by July 2025, and a phased 40%-70% for accounting (5+ accountants) from October 2025.

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3. Data Sovereignty : Stricter controls on data processing prioritize national security and citizen privacy, as reflected in laws like the Personal Data Protection Law (PDPL) and the draft "Global AI Hub Law".

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4. Cultural Alignment : Leaders seek partners with a deep understanding of regional culture and business practices, where relationships and trust are paramount. The aggressive Saudization timelines might create short-term challenges in sourcing specialized expertise, highlighting the need for accelerated local upskilling.

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Table 1 : The New Consulting Mandate in Saudi Arabia

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The "Glocal" Imperative : Blending Global Expertise with Local Realities

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The "glocal model," exemplified by firms like Opals Consultancy, blends global best practices with localized delivery. Key adaptations include :

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- High-Touch Leadership : Senior partners are actively client-facing.

- Relationship-First Execution : Prioritizing long-term, trust-based relationships, understanding "wasta" and in-person collaboration.

- Pragmatism over Process : Favoring rapid pilots and tangible early wins, as seen in a NEOM logistics initiative where a quick pilot replaced a lengthy feasibility study.

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Domestic consultants often have a better grasp of national regulations and market dynamics."Glocalization" implies an embedded presence where global knowledge is adapted and co-created with local stakeholders, fostering sustainable outcomes and local capacity building through initiatives like client-embedded upskilling. However, firms must avoid a "localization façade," as clients demand genuine commitment, not just meeting quotas without true empowerment or knowledge transfer.

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Forging a Sovereign Future : The Rise of Saudi-Led Consulting and Tech

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Saudi Arabia aims to create a "Saudi-Led Consulting Stack" a comprehensive, regionally rooted operating system for consulting ensuring national control. Strategies include:

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• Sector-Specific Innovation : AI in tourism, blockchain compliance in FinTech, custom Arabic LLMs in AI.
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• Regional Methodology Shifts : "Bedouin Agile" (hybrid project delivery), Embedded Delivery Teams in ministries/giga-projects, GovTech Integration (dynamic dashboards like Bahrain’s Tasreef).
• Deep Talent Localization: Reverse Expatriation (attracting Saudi talent from abroad), "Women in AI" programs (e.g., with Effat University), Client-Embedded Upskilling (AI "clinics" in ministries).

The "Saudi-Led Consulting Stack" has four components:

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Table 2 : The Envisioned Saudi-Led Consulting Stack

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A key step is the Saudi partnership (HUMAIN, SDAIA, Aramco Digital) with NVIDIA to build "AI Factories" with up to 500MW capacity and hundreds of thousands of advanced GPUs, including an 18,000 NVIDIA GB300 Grace Blackwell AI supercomputer. This aims to create sovereign AI infrastructure, train Saudi developers, and enable smart city solutions, aligning with Vision 2030. This strategy is about building a domestic ecosystem for innovation, reducing reliance on foreign technology, enhancing national security, and bolstering economic leverage. The "Global AI Hub Law" and NVIDIA investment are strategic moves towards becoming a producer, not just a consumer, of technology.

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Economic Ripples and Market Dynamics : Quantifying the Transformation

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The Saudi consulting transformation occurs within a buoyant market driven by Vision 2030. The GCC Strategy Consulting Market was $3.08 billion in 2024, projected to reach $5.66 billion by 2035 (CAGR 5.7%). Drivers include economic diversification, regulatory changes, AI adoption, government non-oil investments, and major infrastructure projects (>$1 trillion by 2025). The broader Middle East management consulting market is set to grow from $10.27 billion (2024) to $12.77 billion (2029) (CAGR 4.46%). Saudi Arabia's market grew 17.5% in 2022 to $2.105 billion. AI could add $135.2 billion (12.4%) to Saudi GDP by 2030.

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Saudi environmental consulting is valued at $428.85 million (2024), forecasted at $834.53 million by 2033 (CAGR 7.13%), driven by environmental regulations and renewable energy projects. The GCC healthcare consulting market is also booming.

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Table 3 : GCC & Saudi Consulting Market at a Glance

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Public-Private Partnerships (PPPs) are central to Vision 2030, with consulting firms becoming embedded partners under outcome-based contracts, their fees tied to KPIs like Saudization rates or AI adoption in projects like Red Sea Global, ROSHN, and OXAGON. These de-risks government investments.

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Vision 2030 shows diversification success: non-oil GDP hit $680.90 billion (2024), 52% of total GDP, with Q1 2025 non-oil activities up 4.2%. Private sector GDP contribution was 47% in 2024.6 Key non-oil sectors include tourism (aiming for 150 million visitors by 2030, >250 billion SAR spending in 2023), entertainment, renewables (50% energy by 2030), real estate (NEOM, Qiddiya), IT, FinTech, AI, and clean tech.

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FDI into non-oil sectors rose 10.4% in 2023, and total FDI inflows were $25.6 billion in 2023 (50% increase from 2022), targeting $100 billion yearly by 2030. However, overall FDI dipped to $20.7 billion in 2024 due to global liquidity issues and mega-project costs. PIF assets were $940 billion in 2024, targeting $2.67 trillion by 2030. This suggests a more selective FDI strategy, prioritizing alignment with Vision 2030, supported by Special Economic Zones (SEZs) and the Regional Headquarters (RHQ) program (571 firms).

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Navigating the New Landscape : Challenges and Strategic Outlook

Key challenges include the Saudization drive and data governance.

The Saudization Drive : This policy aims to increase Saudi employment and build local capabilities. MHRSD targets 269 professions.

• General consulting : 40% by March 2024.
• Engineering consultancy : 35%; 30% for firms with 5+ professionals by July 27, 2025.
• Technical engineering roles (private firms, 5+ engineers) also 30% by July 23, 2025.
• Accounting : Phased 40%-70% over five years from Oct 22, 2025 (firms with 5+ accountants). (An earlier reference cited 30% by Oct 27, 2027).
• Financial advisory: 30%.

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Table 4 : Saudization Quotas : Impact on Professional Services

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Benefits include skilled local talent and enhanced reputation, but challenges include potential skill gaps and higher wage expectations.

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Data Governance : The Personal Data Protection Law (PDPL) protects personal data processed in KSA and for KSA individuals by external entities, emphasizing purpose limitation and data minimization. The draft "Global AI Hub Law" (April 2025) introduces "data embassies" and three AI Hub categories (Private, Extended, Virtual), allowing foreign laws under specific agreements, aiming to attract AI investment while managing data sovereignty. This requires firms to have robust data protection policies and advise clients accordingly.

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The Competitive Arena : Local Saudi firms benefit from cultural understanding but face scaling challenges. Global firms must genuinely "glocalize," investing in local talent and adapting models. Failure risks commoditization or being sidelined. The "war for local talent" will intensify, making talent management critical.

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Final Thought : The Bedrock of Business : Trust in a Transformed Market

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Trust is paramount in Saudi Arabia's new consulting paradigm : "If people like you, they’ll listen to you. But if they trust you, they’ll do business with you". Trust is earned through consistent action, long-term commitment, cultural understanding, high-touch leadership, and delivering tangible outcomes "in person, over time, on the ground".

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This shift may signify a move from "consulting colonialism" to co-creation and partnership, reflecting a global trend where economies seek equitable relationships. The emphasis on "cultural alignment," "IP ownership," and a "Saudi-Led Consulting Stack" indicates a desire for national control and mutual benefit, addressing past frustrations with perceived imbalances.

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Firms that thrive will be long-term partners, requiring deep cultural immersion and strategic alignment. Vision 2030's success relies on trustworthy partners. If Saudi Arabia successfully reshapes its consulting sector, it could model for other nations undergoing similar transformations, offering lessons in Saudization, data sovereignty, outcome-based contracting, and local IP development. The future belongs to those who build this bedrock of trust.

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