PwC Middle East Emerges as Key Profit Center, Influencing UK Business
In a surprising turn of events, PwC Middle East has emerged as a key profit center for the global consulting firm, outperforming its UK offices and helping to boost overall revenue significantly. The Middle East business, which employs around 8,000 people in the region, saw a remarkable 50% increase in revenue to £1.6bn during the period, far surpassing the near 10% growth recorded in PwC’s UK offices.
The strong performance in the Middle East played a crucial role in helping UK partners avoid a major pay cut, as total profits dropped from £1.5bn to £1.3bn. Partners across the UK and Middle East were paid an average of £906,000 in 2023, only a 1.5% decline from the previous year.
The emergence of PwC Middle East as a key profit center suggests that it will continue to have a significant influence over the business, especially as UK consultants face challenges such as sweeping job cuts amid a dealmaking slowdown. Saudi Arabia is expected to play a key role in the firm’s artificial intelligence strategy, particularly after partnering with Microsoft to develop talent in the region. The technology is predicted to contribute $135.2bn (£108bn) to the Gulf State’s economy by 2030.
However, investment in the region has not been without controversy. Drake & Scull, a major construction engineering firm in the UAE, filed a lawsuit against PwC over alleged audit failures after discovering a significant black hole in its accounts. Additionally, PwC UK faced scrutiny in 2018 for bidding on a contract to help modernize Saudi Arabia’s military, despite concerns about the country’s alleged war crimes in the Yemen civil war.
The perception of increasing Middle Eastern influence within PwC is raising concerns among those who see it as a missed opportunity for the UK business to elect its first female leader in its 175-year history. The recent senior partner election result came as a surprise to insiders, with Ms. Hinton emerging as a clear favorite during the hustings held in Manchester and London.
Ms. Hinton, PwC UK’s tax leader and global relationship partner for FTSE 100 clients, is highly regarded among voters for her leadership and initiatives. During her five-year tenure as the firm’s chief people officer until 2022, she implemented a post-pandemic flexible working policy that allowed employees to choose their working hours and finish early on Fridays during the summer months.
Mr. Amitrano, the newly elected senior partner who previously led PwC’s consulting business in the UK, Europe, and Middle East, expressed his commitment to diversity and inclusion in his leadership. He stated, “To be clear, diversity and inclusion will remain my number one priority as senior partner.”
As PwC continues to navigate challenges and opportunities in the global market, the influence of its Middle East business and the leadership of its newly elected senior partner will undoubtedly shape the firm’s future direction.