Consulting growth slows as Riyadh tightens oversight

Saudi Arabia’s consulting boom is slowing as the government scales back spending and places greater scrutiny on external advisory work. In the years after the pandemic, global consulting firms expanded rapidly in the kingdom, drawn by state-led mega projects and a strong pipeline of public sector work linked to Vision 2030. Advisory contracts were awarded at speed, often with broad scopes and minimal cost scrutiny, as ministries and government-backed entities moved quickly to launch major initiatives.

That period is now ending. A combination of budget pressure, subdued oil revenues and rising scrutiny is reshaping the market. Growth remains positive, but the pace is slowing. Consultancy firms operating in the country are facing more competition, greater fee pressure, and closer oversight of their work.

Shifting priorities in Saudi Arabia’s consulting market

Saudi Arabia became a major focus for global consultancies as the government moved to deliver its Vision 2030 program at speed. State entities and project companies, particularly those linked to the Public Investment Fund (PIF), have relied heavily on external firms to support planning, implementation and delivery. Major initiatives such as Neom and the Red Sea Global development have generated significant demand for strategy, advisory and staffing support. In many cases, consultants have been hired not only for high-level input but to provide additional capacity, with teams embedded across ministries and public sector organisations.

This model has driven rapid growth. Source Global estimates the Saudi consulting market expanded by 38% in 2022 and 25% in 2023. While growth remained positive in 2024 at 14%, it is expected to slow further to 13% in 2025. The change reflects a shift in government priorities. Budget pressure, lower oil revenues and a stronger focus on measurable returns are leading to tighter control over advisory spending.

The year-long ban on PwC from taking on new advisory work, imposed by the PIF in early 2025, signals that scrutiny is increasing. While no official reason was given, figures in the industry see the decision as part of a broader effort to contain costs and reassess the scope of consultant involvement. It comes amid growing pressure on firms to justify fees and deliver clearer outcomes, as government clients — many of which engage international firms — become more selective in how they engage external advisers.

Clients push for value over volume

Pressure on fees is increasing as government entities take a closer look at project scopes and delivery. Where consultants were once brought in quickly and at scale, clients are now questioning cost structures and expected outcomes. Large, embedded teams are being replaced with smaller, more specialised inputs. The focus has shifted from presence to performance, with ministries and state-linked companies rethinking how they procure advisory support.

This is creating a more competitive environment. More firms have entered the Gulf market, and clients have more choice. That has made pricing more aggressive and margins thinner, especially on larger public sector contracts. Smaller firms with regional experience and leaner operations are often better placed to compete under these conditions, while global players face growing pressure to justify fees, delivery timelines and team composition.

A market maturing, not closing

While consulting firms face greater scrutiny, Saudi Arabia continues to present significant opportunities for international businesses. The shift underway points to more focused and value-driven engagements, with greater emphasis on clear outcomes, efficient delivery and strong local compliance. Success now depends on structured planning, lean operations and a sustained presence on the ground.

Major initiatives are still moving ahead. The 2029 Asian Winter Games and the 2034 World Cup carry fixed deadlines and require specialist input. Vision 2030 targets across logistics, tourism and digital infrastructure remain active. Government spending has not stopped, but expectations have changed. The market is becoming more selective, with value and performance now the main criteria for engagement.

How can Sovereign PPG help?

In a market where cost control, compliance and accountability are under the spotlight, having the right local partner is essential. Sovereign PPG understands the operational demands of doing business in Saudi Arabia and across the Gulf. We support international firms with company setup, corporate structuring, nominee arrangements and full PRO service

all delivered with clarity, consistency and local insight.

If you need assistance with entering or expanding in Saudi Arabia, or with any related company formation, restructuring or PRO matters across the UAE, Oman, Bahrain or Qatar, please get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at ksa@sovereigngroup.com or complete the contact form below. We’ll be happy to support you.