Text size:

  • Small
  • Normal
  • Large

Consultancy market on course for strong growth

Arabian Gulf and UAE consultancy markets need more sector-wise focus, says a report.

The regional consultancy market is expected to overcome the wave of consolidation sweeping over the global industry this year with Arabian Gulf-based advisers poised to grow by some 20 per cent.

The Gulf consultancy market had a turnover of about US$1.9 billion (Dh6.97bn) last year, and is expected to grow at 20 per cent this year, according to the 2013 GCC Consulting Market Report.

The UAE is the second-largest regional market at $553 million after Saudi Arabia at $791m. Qatar was third at $232m. The UAE market grew at 12 per cent year on year in 2012.

But consultants needed to offer clients more industry specialisms, said Fiona Czerniawska, the joint managing director of Source Information Services in London that published the report. "There are not many consultancies that focus on a specific sector. This is true across the world but the shortage here is much more huge. They must allow [their] people to specialise in a particular industry."

The consultancy market grew 34 per cent in Saudi and 14 per cent in Qatar last year. The Saudi and Qatari markets are expected to grow by 20 per cent this year, whereas the UAE market is expected to grow more modestly at 5 to 10 per cent riding on resurgent government spending in Abu Dhabi. But the figures are far higher than in Europe, the report said.

Multimillion-dollar transformation projects that are coming on line should be the target, Ms Czerniawska said on the sidelines of the launch of the GCC report in Dubai yesterday. The report looks at big consulting companies, such as the Big Four that comprises KPMG, Ernst & Young, Deloitte and PricewaterhouseCoopers.

"The consultancy firms need to turn up world-class expertise in several sectors, and to have international networks," Ms Czerniawska said.

Competition in the Emirates, however, is acute. There are at least 100 consultancies in the UAE with more than 50 people, besides several small companies, according to Source Information Services. The region's pubic sector is one of the major users of consultancies.

Last year, Source identified the Arabian Gulf and within it Saudi Arabia and Qatar as the hot spots of the consultancy market, as government spending on infrastructure fuelled growth.

"It is quite interesting to know the market size, and get an indication of where it is going," said Marc Nassim, the head of clients and markets for financial advisory services for the Middle East at Deloitte, based in Dubai.

Globally the consultancy market is expected to be headed for more consolidations in the next two years. In January, Deloitte acquired the American strategy consulting firm Monitor for $116m.

"This is a world where big firms would become bigger," Ms Czerniawska said.

 

ssahoo@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Miele coffee maker making Cappuccino at Miele Gallery in Sama Tower in Dubai. The cost of this coffee maker is around Dh 17,000. Pawan Singh / The National

Space-age coffee comes at a price from Miele

Miele have taken the coffee machine to a new level with its Dh17,000 offering that is built into your kitchen.

 The bridge of Seajacks Hydra, as the wind farm installation vessel undergoes finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014. Jeffrey E Biteng / The National

In pictures: Building the Seajacks Hydra

The Seajacks Hydra, a wind farm installation vessel, is undergoing finishing touches and testing works at Lamprell’s Hamriyah facility in Sharjah before its planned delivery on June 2, 2014.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 The rush of new supply of hotel rooms pushed Dubai occupancy rates down to 87 per cent. Sarah Dea / The National

Dubai hotel room rates rise 10 per cent

The rush of new supply pushed occupancy rates down to 87 per cent, a dip of 2.6 per cent from the previous year. Winter months are the strongest for Dubai hotels, with occupancy and prices falling to half their peaks by July.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National