Market Trends of MEA Management Consulting Services Industry
Financial Services to be the Fastest Growing End-user Industry
- Financial service companies in the Middle East & Africa, including banks, insurance companies, and fintech companies, have a growing interest in the opportunities and risks of decentralized finance. Competition in the region's banking sector intensifies as customer demands and expectations increase.
- The financial services in the management consulting services include financial strategy and planning, financial risk management, financial performance improvement, financial transformation, merger and acquisition (M&A) advisory, capital markets and financing, treasury, cash management, financial compliance and regulatory advisory, and financial technology (FinTech) consulting.
- Among countries, the United Arab Emirates may hold significant management consulting activity owing to its strategic location, thriving economy, and emphasis on economic diversification. The UAE, particularly Dubai and Abu Dhabi, has been a significant hub for business and finance in the MEA region.
- Moreover, the UAE banking sector is set for further vibrant growth in 2024 despite global headwinds, with the total assets of banks operating in the country surging by 11% Y-o-Y to a record AED 4.1 trillion (USD 1.12 trillion) in 2023, the Central Bank of the UAE (CBUAE) report.
- In the last quarter of 2023, banks' total assets increased by 3.1% Q-o-Q while total deposits of resident and non-resident customers with UAE banks rose by 4.2% Q-o-Q and 13.5% Y-o-Y to reach AED 2.5 trillion (USD 0.68 trillion) at the end of December 2023. Such significant growth would indicate the adoption of substantial management consulting services.
- Under Vision 2030, the Financial Sector Development Program (FSDP) issued new initiatives and responsibilities to be achieved by 2025 to bring the Kingdom closer to its 2030 goals. A central strategic pillar is to enable financial organizations to support the growth of the private sector. Such initiatives are expected to create potential opportunities for various management consulting firms in the country, thereby propelling market growth in the coming years.
- The growth of fintech startups and the increasing adoption of financial technology solutions are expected to offer opportunities for management consultants to assist traditional financial institutions in partnering with or integrating fintech solutions into their operations. This can involve advising on strategic partnerships, assessing technology infrastructure, and developing innovation strategies.
- AI, machine learning, and automation trends will increase in the financial services sector. These technologies can enhance operational efficiency, streamline processes, enable personalized customer experiences, and improve risk management. Management consultants can assist organizations in implementing AI and automation solutions, optimizing processes, and managing the associated organizational and workforce changes.
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Saudi Arabia is Expected to Hold Significant Market Share
- The management consulting services market in Saudi Arabia is driven by the government and business strategies to diversify the economy. The consulting vendors in the region have contributed significantly to these businesses by providing strategic advice, operational improvements, and technology deployments, which presents an opportunity for market vendors in the country.
- The Saudi Vision 2030 is a comprehensive strategy to minimize the country's dependency on oil and build new economic sectors. The Saudi management consulting firms are developing strategies to support the planned initiatives to enhance infrastructure expansion, public services, renewable energy, and digital transformation.
- The life sciences and healthcare segment is observing a solid demand for management consulting services in Saudi Arabia owing to the advancing patient experience, care quality, and digitization of the healthcare system, creating opportunities for local vendors in strategic consulting and technology advising in healthcare.
- The MEA region has a growing population and increasing healthcare needs. There is a demand for improved healthcare infrastructure, access to quality healthcare services, and better healthcare outcomes. Management consulting firms are crucial in advising healthcare organizations on strategic planning, operational efficiency, and process optimization to meet the rising demand effectively.
- Among countries, Saudi Arabia is expected to register significant growth rates during the forecast period. Saudi Arabia has been investing heavily in its healthcare sector and has ambitious plans for its development. According to WHO, in 2023, Saudi Arabia's expenditure on healthcare totaled USD 63.8 billion. Further, it was estimated to be around USD 77.1 billion by 2027.
- Saudi Arabian businesses require management consulting services to create plans for expanding into new areas, streamlining operations, and increasing market competitiveness. Businesses are growing their market share by developing new offices, partnerships, acquisitions, and mergers of companies.
- Management consulting firms are expanding their business in the country to address the demand for strategic consultancy services, which shows the market's growth potential in the coming years. Management consulting firms are accelerating their expansion rate in the Saudi market to help government agencies achieve Vision 2030's goals by creating specific strategic priorities and initiatives. They are further working with corporate and government leaders on transformation programs across various industries, including human capital development, enhanced sustainability, and the launch of new firms.
- Therefore, the economy of Saudi Arabia has been going through a significant revolution, and several industries are poised to boom significantly in the next few years. Numerous industries, including healthcare, retail, energy, and manufacturing, have received significant investments and are expected to grow in the future, accelerating the growth of the service requirements of the management consulting market vendors in the country.
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