Saudi businesses are reconsidering their dependence on strategy consultants, hinting at a possible move towards employing more permanent staff for major projects, Trefor Murphy, CEO of leading Gulf recruitment firm Cooper Fitch.
This reassessment has already caused a 5 percent decline in new strategy consulting jobs across the Gulf region in recent months, as noted in a Cooper Fitch report. However, Murphy clarified that this does not imply a complete halt in sector hiring.
“KSA [Saudi Arabia] is reassessing its expenditure on consulting services, eliminating non-essential elements, which has led to reduced hiring – this trend will persist over the summer months,” the CEO told Arabian Business.
While some sources attribute the decline to Saudi firms preferring to hire full-time employees over consultants for major initiatives like the kingdom’s upcoming giga-projects, Murphy offered a different view.
“In Saudi Arabia, organisations are reviewing their needs, particularly for the Mega and Giga projects. We believe there is still a preference to hire consultants rather than permanent employees for the foreseeable future.”
No outright hiring freeze expected
Addressing rumours of an imminent hiring freeze in strategy consulting in the region, the CEO reassured stakeholders.
“No, there is no hiring freeze at all,” Murphy said. “We are observing a slight reduction in hiring in Saudi Arabia as discussions about ensuring value for money in larger projects continue, reflecting the Saudi government’s fiscal policy management.”
Despite this reassessment, he highlighted Saudi Arabia’s ongoing significance for the strategy consulting sector in the Gulf.
“The UAE is the hub for consulting services, but Saudi Arabia has been and remains the major consumer of these services, a trend that will continue for many years,” the CEO said.
Legal and investment roles in demand
While strategy consulting roles have declined, there was a 9 percent increase in legal and investment management jobs across the GCC in Q1, highlighting the Gulf economies’ ongoing diversification.
“There has been a rise in demand for legal roles within investments, real estate, and family groups,” said Murphy.
“This is driven by a surge in mandates for lawyers with expertise in transactions, project finance, and project development, particularly from common law jurisdictions.”
The CEO mentioned Saudi Arabia’s rapidly expanding government investment funds, the entry of major international firms into Riyadh, and new market entrants establishing themselves in the UAE’s financial hubs as key factors.
“Both government and private investment firms are very active in Saudi Arabia, with government funds quickly growing their portfolios and thus hiring more. Major international firms are also setting up in Riyadh,” he said.
“Dubai and Abu Dhabi are seeing a significant number of new market entrants, with the UAE leading in GCC IPO proceeds in 2023. This is driving increased demand for legal and investment roles.”
