PwC is trying to fix its relationship with Saudi Arabia after PIF stopped working with its advisors: Report
The consulting firm PricewaterhouseCoopers (PwC), based in London, is reportedly trying to fix its relationship with Saudi Arabia after the Public Investment Fund (PIF) banned it from advisory work for a year.
Fixing Strained Relations
Saudi Arabia has paused work between PwC and the PIF’s main holding company, though PwC can still work with other PIF-owned businesses, according to Reuters.
Saudi Arabia and its $925 billion wealth fund are important clients for PwC, with over 2,600 of its employees working on projects in the country.
This issue became public when Bloomberg reported that the PIF had temporarily stopped PwC from signing new consulting contracts with itself and its 100+ subsidiaries until February 2026. However, auditing services are not affected.
On the same day, PwC told its employees in a memo that this was a ‘client’ issue, not a regulatory one, a source told Reuters.
PwC’s non-audit services include areas like mergers and acquisitions, tax advice, and business strategy.
PwC in the Middle East
PwC earned $2.5 billion in the Middle East in the 12 months ending June 2024, a 26% increase from the previous year. Demand for its services is rising, and PwC expects continued growth in the region through 2026, though at a slower pace.
Other consulting firms, like McKinsey & Co. and Boston Consulting Group, also make significant profits in the Middle East, with PIF being a major client.
Saudi Arabia relies heavily on foreign consultants to support its Vision 2030 plan, which aims to diversify the economy beyond oil.
With falling oil prices, the government is focusing on cutting costs. Consultants help manage large projects while keeping spending in check, according to Reuters.
Background
PwC chose Riyadh as its regional headquarters in 2023 after obtaining a license. It employs over 2,000 people in Saudi Arabia and operates in more than 20 locations across the Middle East.
Published: 4th March 2025
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