PwC Strives to Rebuild Ties with Saudi Arabia Amid PIF Suspension

PwC is seeking to mend relations with Saudi Arabia, notably with its Public Investment Fund (PIF), after a suspension of activities. PIF has paused consulting projects with PwC until February 2026, citing a client-related matter. The financial implications for PwC remain unclear, but its Middle East revenue was $2.5 billion last year, with Riyadh serving as its regional base since 2023.

PricewaterhouseCoopers (PwC) is currently engaged in efforts to restore relations with Saudi Arabia, particularly with its Public Investment Fund (PIF), according to sources familiar with the discussions. The PIF, along with the broader Saudi Arabian government, represents a significant client base for PwC, which has allocated over 2,600 global employees to projects within the kingdom.

Recent developments indicate that the PIF has temporarily suspended its partnership with PwC’s holding company, though portfolio companies within the PIF are still permitted to engage the consultancy firm. This situation has been characterized as a “client” matter rather than a regulatory issue, as PwC communicated to its employees in a memo.

Following a report from Bloomberg, it was indicated that PIF executives have been instructed to cease awarding consulting assignments to PwC until February 2026. Both PwC’s spokesperson in Dubai and PIF have refrained from commenting on the situation, leaving the extent of business impact unclear. In the last fiscal year leading to June 2024, PwC’s Middle East operations generated $2.5 billion in revenue, although specific figures for Saudi Arabia were not disclosed.

In 2023, PwC established Riyadh as its regional headquarters, which is essential for securing contracts related to various projects within the kingdom. This move reflects PwC’s commitment to its operations in Saudi Arabia and the importance of fostering strong client relationships in the region.

In summary, PwC is actively working to repair its partnership with Saudi Arabia’s Public Investment Fund following a suspension of activities. While the situation is deemed a client matter and not regulatory, the impact on business remains uncertain amidst the temporary halt of new consulting projects. PwC’s recent establishment of a regional headquarters in Riyadh underscores its dedication to the Saudi market and its potential future endeavors.

Original Source: gulfbusiness.com