PwC is working to repair its relationship with Saudi Arabia and the PIF after the fund suspended engagements with the consulting firm. While direct consulting projects are currently on hold until February 2026, portfolio companies may still collaborate with PwC. The firm generated significant revenue from Middle East operations and aims to maintain its strategic presence in the region.
PwC is actively seeking to restore its relationship with Saudi Arabia and its Public Investment Fund (PIF), as confirmed by sources familiar with ongoing discussions. The PIF, a key client managing assets worth $925 billion, has currently suspended direct engagements with PwC while allowing its portfolio companies to continue working with the firm. This situation affects numerous projects in which PwC has invested significant resources, with over 2,600 employees dedicated to initiatives in the kingdom.
According to a recent memo sent to staff, PwC clarified that the issue with Saudi Arabia pertains to a client-related matter rather than any regulatory concern. This clarification came after reports indicated that executives at PIF were instructed to withhold consulting contracts from PwC until February 2026. Attempts to ascertain the potential financial impact on PwC from this suspension remain inconclusive.
In the fiscal year ending June 30, 2024, PwC generated $2.5 billion in revenue from its operations in the Middle East, though it did not specify the portion attributable to Saudi Arabia. Additionally, in 2023, PwC established Riyadh as its regional headquarters, a strategic move aimed at facilitating project opportunities within the kingdom. Both PwC and the PIF have refrained from making public comments regarding the situation as discussions continue.
In summary, PwC is endeavoring to mend its relationship with Saudi Arabia and the PIF, which has currently suspended engagements with the consulting firm. This development raises questions regarding the financial ramifications for PwC, which has a substantial workforce in the kingdom and identifies Riyadh as its regional headquarters. The context of the communications suggests a focus on client-related issues rather than regulatory complications as both parties navigate this situation.
Original Source: gulfbusiness.com
