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Background

• Our clients have since become major consultancy firms in Russia, recognized for their rise in ratings by Expert RA on Russian consulting, with notable clients such as Rosneft, Rusnano, and GazpromNeft.
• They aim to expand their business into the UAE to tap into the lucrative and growing Middle Eastern market.
• They seek to understand the market sizing, pricing structure of consultancies, project outsourcing dynamics, payment conditions, market saturation, and the scope of financial services in the region.
• Point Consultancy has been selected to conduct a financial consulting market landscape study for its clients.
• This report aims to shed light on various aspects of the financial consultancy market through desk research and in-depth interviews with professionals.

Research Design
To address your specific requirements, we have conducted desk research along with 15 in-depth interviews (IDIs) with financial consultants and IT integration providers to compile this report.

Report
Understanding UAE Financial Market Consultancy

Global Consultancy Industry
Over the past decades, the global consulting market has blossomed into a multi-billion dollar powerhouse. This industry has not only grown in size and prestige but also expanded its international footprint. Today, it’s one of the most advanced segments within the professional services field.

Consultancy in the GCC
The consulting market in the UAE shares many similarities with those of its neighboring GCC countries. One of the largest consumers of consulting services in the UAE is the public sector. The government’s efforts to diversify the economy away from oil have significantly increased the demand for advisory work. Between 2016 and 2019, the consulting industry in the UAE grew by 12%, reaching $1.2 billion, which is 3% higher than the average growth rate across the GCC between 2018 and 2019.

Overall Market Size of Consultancy in the GCC
According to Source Global Research, the overall consultancy market in the GCC experienced a significant decline of 12% in 2020, reaching a valuation of $2.7 billion. This downturn was primarily attributed to the COVID-19 pandemic, which led many clients to pause their consulting projects. Industries heavily impacted by the pandemic, such as retail, hospitality, and aviation, witnessed a particularly pronounced slowdown in consultancy activity.

Defining Financial Consultancy

Defining financial consultancy presents a considerable challenge due to its multifaceted nature. In this research report, we have refined the definition to align closely with our clients’ expectations.

Financial consultancy, as defined for our research, encompasses a range of services including:

• Auditing
• Advisory on Financial Matters
• Taxation Advisory
• Management Consultancy
• Finance Advisory and Wealth Management Consultation
• Financial Software education and implementation

The UAE Consultancy Market: Dynamics and Challenges
In the UAE, clients place significant emphasis on the brand reputation and management standing of consultancy firms, leading to the dominance of larger firms in the market. Feedback from consumers of consulting services reveals a strong preference among management and board of directors for established, larger firms over smaller boutique firms. Additionally, local and state-backed organizations show reluctance to engage with smaller firms, further limiting their opportunities in the market.

Despite the competition between large and boutique firms, both encounter a common challenge: consulting services are often viewed as discretionary spending in the UAE. The market, although young and burgeoning, grapples with the perception among potential clients who have yet to fully grasp the value that external consultants can bring. Consequently, during periods of financial strain, budget allocations for consulting services are drastically reduced or eliminated altogether.

Navigating the Impact of COVID-19 on the UAE Consultancy Market
Before the arrival of the COVID-19 pandemic, the consultancy industry in the UAE was on a robust growth trajectory. Projections foresaw a surge in demand for consulting services, especially in the public sector, where the government aimed to modernize service delivery through technological advancements. Similarly, in the private sector, there was a burgeoning need for support in digital transformation initiatives.

Historical Trend of Consultancy in UAE
The UAE’s financial consultancy sector has steadily grown at a rate of 20% annually, driven by increasing local demand for problem-solving services. Expected to expand 2.5 times by 2025, with 2022 as a pivotal year, marking a return to pre-pandemic levels.

Financial Consultancy in UAE
In recent years, the UAE has emerged as a leading global hub for the consulting industry. This growth is primarily driven by substantial demand from the public sector, which is actively working to diversify the economy away from its traditional reliance on oil. The UAE has successfully implemented strategies to support economic diversification, attracting a surplus of businesses and investments from around the world.