PwC is working to repair its relationship with Saudi Arabia after the PIF suspended its engagement with the consulting firm. The issue is termed a client matter, not regulatory, affecting future consulting projects until February 2026. PwC has significant resources and generates substantial revenue from its Middle Eastern operations, with a strategic presence in Riyadh since 2023.
PricewaterhouseCoopers (PwC) is actively engaging with Saudi Arabia and its Public Investment Fund (PIF) to restore their working relationship, as per insights from two individuals familiar with the situation. PwC has committed significant resources to Saudi projects, with more than 2,600 employees devoted to the kingdom, making it a vital client for the firm. Currently, PwC faces a suspension of interactions with the PIF’s holding company, although its portfolio companies may continue to seek consulting services from PwC.
Internal communications from PwC indicate that the issue at hand with Saudi Arabia pertains to a client-related matter rather than a regulatory concern. A recent report from Bloomberg asserts that PIF executives have been instructed to suspend the allocation of new consulting projects to PwC until February 2026. Both PwC and PIF have opted not to provide public comments regarding the situation.
Despite an absence of clarity on the potential financial implications of this suspension, it is known that PwC’s operations in the Middle East generated $2.5 billion in revenue as of June 30, 2024. However, the company did not disclose specific revenue figures attributed to its Saudi Arabian engagements. In a strategic move, PwC designated Riyadh as its regional headquarters in 2023, a crucial factor for securing contracts within the kingdom’s ambitious developmental projects.
In summary, PwC is seeking to mend its relations with Saudi Arabia following a suspension of its activities with the PIF’s holding company, although other engagements may continue. The situation, categorized as a client matter rather than a regulatory issue, underscores the importance of Saudi Arabia as a key market for PwC. The firm’s investment and operational presence in the country reflect its commitment to contributing to Saudi Arabia’s development initiatives.
Original Source: gulfbusiness.com
