In an effort to mend relations with Saudi Arabia’s sovereign wealth fund, PwC has made significant changes to its leadership in the Middle East following a dispute with the kingdom’s Public Investment Fund (PIF). The global consulting firm, which was penalized earlier this year for attempting to poach a senior executive from the Neom mega-project, has decided to part ways with several top executives in the region.
PwC confirmed last week that key members of its Middle Eastern board, including Mohamed ElBorno, head of assurance, and Emma Campbell, head of partner affairs, will be stepping down. Both ElBorno and Campbell are long-standing veterans of the firm, and their departures reflect PwC’s effort to placate the PIF after the incident that led to a one-year ban from new advisory work with the fund.
The issue began in February when PwC attempted to hire Jason Davies, former chief internal audit officer at Neom, a $500 billion city development spearheaded by Saudi Arabia. The PIF, which has significant stakes in major global companies like Uber, Meta, and Heathrow Airport, imposed the ban in response to the hiring attempt. Although the ban does not impact PwC’s audit services in the kingdom, it has nonetheless shaken the firm’s operations in the region, which are crucial to its overall growth.
PwC’s Middle Eastern division, based in Riyadh, has been one of the firm’s brightest success stories. The region, which employs 12,000 staff across 12 countries, has seen tremendous growth, with PwC reporting a 26% sales increase in the Middle East, far outpacing its modest 3% growth in the UK. The firm’s success is largely attributed to lucrative consulting contracts with Gulf governments and sovereign wealth funds, as the region invests heavily in diversification away from fossil fuels.
However, the relationship between PwC and the PIF had been deteriorating before the incident, sources close to the matter say. PwC is now working to rebuild trust with the PIF and ensure its continued presence in one of the world’s most profitable consulting markets. Other firms, including KPMG, EY, Deloitte, and US-based giants like McKinsey, Bain, and Boston Consulting Group, have also made inroads into the Gulf’s lucrative consulting market.
As the consulting sector in the Gulf continues to grow, with an estimated 12% market expansion this year, Saudi Arabia’s Vision 2030 initiative has driven demand for expertise in mega-projects like Neom. Despite the setbacks, Neom remains central to the kingdom’s ambitious plans, even though the project has been scaled back and delayed.
The growing reliance on foreign consultants has raised concerns within the Saudi government, with some officials arguing that it undermines local expertise and hampers the development of a sophisticated domestic civil service. To address these concerns, the Ministry of Human Resources and Social Development has introduced the Nitaqat program, which aims to increase the proportion of Saudi nationals in the consulting workforce. Additionally, the kingdom has scaled back consultancy spending due to fluctuating oil prices, signaling a shift in priorities for the sector.
PwC’s leadership changes and efforts to repair its relationship with Saudi Arabia come at a crucial time as the Middle East consulting market continues to boom, and competition among firms intensifies.
