Gulf region becomes key player in growth of consulting industry

• Globally, the consulting industry is experiencing a prolonged slowdown, growing by just 3% to $250 billion in 2023.

• McKinsey now employs over 1,000 consultants in the Middle East, a significant increase from pre-pandemic levels. Similarly, Boston Consulting Group has senior leaders based in Dubai, with the $925 billion Saudi Public Investment Fund being one of its largest clients.

• Business activity in the Gulf remains strong despite escalating violence in the region. The conflict has not significantly impacted operations, and entities are still pursuing investment plans, although further escalation could affect the business environment.

Gulf countries have emerged as key hubs for fostering partnerships and promotions within some of the world’s top consulting firms, according to Al Anba newspaper.

Globally, the consulting industry is experiencing a prolonged slowdown, growing by just 3% to $250 billion in 2023, according to Source Global Research, which focuses on medium-sized and large companies.

In the Gulf, however, growth has surged at four times that rate, fueled by governments spending trillions on new construction projects and making strategic deals. This has driven major expansion efforts by giants like McKinsey & Co. and Boston Consulting Group Inc.

According to Bloomberg, some McKinsey executives are opting for positions in the Gulf, as the region has become a cornerstone for career advancement and senior roles within the firm.

McKinsey now employs over 1,000 consultants in the Middle East, a significant increase from pre-pandemic levels. Similarly, Boston Consulting Group has senior leaders based in Dubai, with the $925 billion Saudi Public Investment Fund being one of its largest clients.

Senior executives at global consulting firms believe the industry is likely to remain one of the most resilient sectors in the Gulf. Consulting thrives in both boom times, providing expansion advice to governments, and in downturns, offering restructuring strategies.

For McKinsey and Boston Consulting Group, the Gulf region ranks among the strongest in the world in terms of revenue and profitability, according to Bloomberg.

Boston Consulting Group boasts influential figures such as Saleh Al-Ateeqi, who joined the firm in 2023 from the Kuwait Investment Authority’s London branch, where he served as head for four years, and Ihab Khalil, who has extensive experience working with sovereign wealth funds and regional investors. The firm also employs more than 1,000 consultants in the region, sources said.

Business activity remains strong despite escalating violence in the region. So far, one executive noted that the conflict has not significantly impacted operations, and entities are still pursuing investment plans, although further escalation could affect the business environment.

As a result, initial compensation for consultants in Gulf capitals may surpass that of London, even without tax adjustments. In Riyadh, new hires at Boston Consulting Group can earn a tax-free monthly salary of about $10,000, which exceeds the average base salary reported on Glassdoor for U.S.-based employees at the firm.

Relying on external expertise has long been a hallmark of the region’s transformation. One of the most prominent examples is the Middle East Business Centre in Dubai. Jim Crane, a fellow at Rice University’s Baker Institute for Public Policy in Houston, noted that the city relied on consultants for major development projects, including the iconic Palm Jumeirah artificial island.

Palm Jumeirah is now at the center of Dubai’s luxury housing boom, attracting billionaires from around the world. When the emirate revived a similar project years after it had been halted, buyers eagerly lined up for multimillion-dollar homes.

“I bet the consultants responsible for Dubai’s big wins have generated a lot of new business across the Gulf,” Crane said.