PwC is negotiating to restore relations with Saudi Arabia and its Public Investment Fund after a suspension in activities. The suspension does not affect projects by PIF’s portfolio companies, but PwC’s extensive workforce in the region is at stake. The matter is confirmed as a client issue, not regulatory. Revenue from the Middle East for PwC was significant, emphasizing the firm’s reliance on Saudi contracts.
PwC is actively seeking to repair its relationship with Saudi Arabia and the Public Investment Fund (PIF), as reported by two insiders familiar with the ongoing discussions. As a major client, PIF’s operations represent a significant aspect of PwC’s portfolio, employing over 2,600 staff for projects within the kingdom.
Currently, activities between PIF’s holding company and PwC have been suspended. However, portfolio companies associated with PIF are still permitted to work with PwC. The details of this situation remain confidential, leading to restrictions on public commentary from both parties involved.
In an internal memo to staff, PwC clarified that the matter in question involves client relations rather than any regulatory issues. This memo followed concerns from Bloomberg News regarding directives to PIF executives to halt new consulting contracts with PwC until February 2026.
Despite the uncertainties, PwC’s Middle East operations were reported to have generated revenue of $2.5 billion for the year ending June 30, 2024. While specific financial impacts from the suspension with Saudi Arabia remain unclear, the company has emphasized its commitment to maintain a presence in the region. In 2023, PwC established Riyadh as its regional headquarters, which is vital for accessing local projects.
PwC is striving to mend its relationship with Saudi Arabia amid a suspension of activities connected to its key client, the Public Investment Fund. The firm maintains a substantial operational footprint in the country, underscoring its importance to PwC’s overall revenue. Clear communication regarding client relationships has been emphasized amidst the ongoing situation.
Original Source: gulfbusiness.com
