PwC is working to repair its relationship with Saudi Arabia after a suspension of services related to its Public Investment Fund. Internal communications clarify that the situation is a client matter rather than regulatory. While the financial implications of this suspension are undetermined, PwC generated substantial revenue in the Middle East and views Riyadh as a critical hub for its operations.
PwC is actively engaging with Saudi Arabia and its Public Investment Fund (PIF) in efforts to restore and strengthen relations following a suspension of activities involving PwC’s services for the fund. The PIF, along with the kingdom, constitutes a significant portion of PwC’s clientele, employing over 2,600 staff members focused on projects within the nation.
The Saudi government has halted collaboration with PwC’s holding company, although its portfolio companies can still utilize the consultancy’s services. Discussions regarding the matter have been conducted privately, according to sources familiar with the situation.
In a recent internal memo, PwC informed its employees that the issues with Saudi Arabia pertain to a “client” matter rather than being a regulatory concern. This message followed a report from Bloomberg, which indicated that PIF executives had been instructed to cease awarding consulting contracts to PwC until February 2026.
A representative for PwC in Dubai refrained from commenting on the situation, as did the PIF. The total potential business impact resulting from this suspension remains unclear, but PwC’s Middle East operations are reported to have generated $2.5 billion in revenue in its latest fiscal year ending June 30, 2024, although a specific figure for Saudi Arabia has not been disclosed.
In 2023, PwC established Riyadh as its regional headquarters, a strategic move crucial for securing work on projects within the kingdom. The firm aims to navigate this challenging phase and re-establish its relationship with key stakeholders in Saudi Arabia.
In summary, PwC is in the process of mending its relationship with Saudi Arabia and the PIF after a suspension of consulting activities. While the specific implications for their business are still unclear, the firm remains committed to addressing client concerns. This illustrates the careful balancing act multinationals must perform in maintaining strong relations with major clients in key markets.
Original Source: gulfbusiness.com
