PwC Navigates Business Challenges in Saudi Arabia Amid PIF Suspension

PwC Seeks to Mend Relations with Saudi Arabia

Background and Context

PwC is actively working to repair its relationship with Saudi Arabia and its sovereign wealth fund, the Public Investment Fund (PIF).
The kingdom and PIF are major clients for PwC, with over 2,600 employees dedicated to projects in Saudi Arabia.

Suspension of Business Ties

Saudi Arabia has suspended activities between PwC and PIF’s holding company.
However, portfolio companies of PIF are still allowed to engage PwC for consulting services.
Bloomberg reported that PIF executives have been directed to halt awarding new projects to PwC until February 2026.

PwC’s Response and Internal Communications

PwC addressed the situation in an internal memo, stating that it was a “client” matter and not related to regulatory issues.
A spokesperson for PwC in Dubai declined to comment, and PIF also refrained from making statements.

Financial Implications

Reuters could not determine the exact financial impact on PwC’s business in Saudi Arabia.
PwC’s Middle East revenue for the fiscal year ending June 30, 2024, was £1.97 billion ($2.5 billion). However, specific figures for Saudi Arabia were not disclosed.

Saudi Arabia’s Dependence on Consultants

The kingdom relies heavily on foreign consultants to execute Crown Prince Mohammed bin Salman's Vision 2030, which aims to diversify the economy beyond oil.
Mega projects like Neom require extensive consulting to meet deadlines and optimize costs, especially as oil prices decline.

PwC’s Position in Saudi Arabia

In 2023, PwC designated Riyadh as its regional headquarters, aligning with Saudi Arabia’s requirement that companies establish a local HQ to secure government contracts.
This strategic move was intended to strengthen PwC’s presence in the kingdom and secure future projects.

Wider Financial Landscape

In a separate major financial move, a company is preparing to price a $26 billion investment-grade bond offering to help finance its acquisition of Pringles maker Kellanova, making it one of the largest acquisition financing deals of the year.

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