The consultants are flocking to Saudi Arabia.
The kingdom has spent US$1.25 billion on fees for management consultants this year, according to a report from Source Global Research, as it gears up to announce its National Transformation Plan on Monday. The NTP is a raft of economic reforms designed to insulate the Saudi economy from the impact of low oil prices.
The fall in hydrocarbons revenues has hit Saudi Arabia’s financial buffers and widened its fiscal deficit, meaning that the Gulf monarchy has realised that it must embrace new policies – which is proving a boon to the economic advice industry.
Spending on consultants grew 14.8 per cent in Saudi Arabia year-on-year. That makes the kingdom the largest and fastest growing market for consultants in the region. The GCC as a whole spent $2.7bn on consultants in 2015, up from $2.46bn the previous year.
“For consultants, [Saudi Arabia] currently represents the mother of all transformation projects,” said Edward Haigh, SGR’s director.
Jason Tuvey, an emerging markets economist at Capital Economics, said: “Saudi ministries have relied on western consultants and experts for many years to help with running the economy. It’s a way for the Saudi government to get outside authority for their plans. For consultants, there is plenty of work available.”
The consultancy McKinsey argues that the kingdom needs to create 6 million new jobs by encouraging $4 trillion of new investment into its non-oil economy by 2030, in a report published shortly before the Gulf state announced it would embark on an economic reform programme.
The four largest consulting firms, PwC, Deloitte, EY and KPMG – which have recently expanded their consulting businesses – have benefited most, earning $913 million in fees in 2015, according to the report.
As oil prices rose steadily from 2003 to 2014, Gulf states embarked on an infrastructure spending spree. Mega-projects from the Kingdom Tower in Saudi Arabia, to the Qatari stadium projects ahead of the Fifa World Cup 2022, and the UAE’s major airport developments, have provided plenty of business for consultants.
But with oil prices now at $43 per barrel, down from a high of $110 in the summer of 2014, the Gulf states are turning to consultants to help them trim their budgets as they enter an era of austerity. Privatisations, cuts to subsidies, reductions in social welfare payments and overhauls to sovereign wealth funds have all been considered, and consultants are advising on each of these changes.
Last December Saudi Arabia announced an austerity budget in which it would cut spending by 13.8 per cent this year.
Some elements of the NTP have been mentioned in deputy crown prince Mohammed bin Salman’s public statements.
Ministries have been told to cut their individual spending plans by 5 per cent each, on top of additional policy changes, Reuters reported in March. Prince Mohammed said this month that the kingdom would hope to generate more than $100bn per year by 2020 in new revenue from subsidy cuts, new labour market rules and the introduction of VAT. He also outlined a complex plan to transfer ownership of Saudi Aramco to the Public Investment Fund, a new sovereign wealth fund.
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Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Company%20Profile
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Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
THE 12 BREAKAWAY CLUBS
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid