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Posting as :
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▸ Middle East Consultants
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Mentor

Any 🫖 on the political situation between the UAE and KSA and how consulting firms may be affected? It’s been getting super tense recently. I’ve been hearing Dubai-based companies (e.g., Careem) are basically being forced to cut operations in KSA

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Community Builder

I think there was some visa blockade a few months back. Potentially that may happen again

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The two consulting markets are heavily diverging in every aspect. A time will come where working in the UAE and KSA will be mutually exclusive (assuming there will be anything left in those two countries after the war ends)

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Kearney 1
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Maybe am being simplistic here. But if we look at it from the lens of reserves that ME countries have they can sustain this for a very long time. Will be painful but can be done. Relative to the hit that other economies will face the region is in a far better place.

The situation is indeed unprecedented but what many are missing out on is that countries in the region have been playing out different scenarios for several years. Consulting firms have even done scenario planning projects on this over the last decade. And some of these scenarios were far worse than what is the current situation. Highly doubt whether the West looked at this the same way since it is a problem far away and Russia used to be a backup.

Region is indeed oil, logistics, aviation, tourism, and real estate dependent. All of this has taken a hit to different degrees. Don’t expect a rebound to previous growth levels due to instability but bounce back to previous levels and then more moderate growth definitely is feasible. History of Europe/NA matters little as there are many structural issues today that hurt growth. There are exceptions but the general trend is there - share of global GDP keeps going down.

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Careem operations are independent of the political situation - more commercially driven - although I don’t have the specifics.

On the consulting side they may insist on locally based consultants as part of evaluation criteria.

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