Saudi wealth fund blocks PwC from advisory for a year

Matthias Balk/Photographer: Matthias Balk/pict

Saudi Arabia's wealth fund has temporarily banned Big Four firm PwC from advisory and consulting services contracts, people familiar with matter said, halting the firm's progress in one of the world's most lucrative markets. 

Executives at the $925 billion Public Investment Fund and its more than 100 subsidiaries have been told to stop handing out consulting projects to PwC until February 2026, the people said, declining to be identified as the information is confidential. The firm's auditing projects will not be affected, they said.

The PIF did not explain reasons behind the move in messages sent to its portfolio companies. Representatives for the fund declined to comment, while a spokesperson for PwC didn't respond to requests for comment.

The PIF's decision comes two years after PwC received a license to open its regional headquarters in the kingdom, where it employs more than 2,000 people across Riyadh, Jeddah, AlUla, Al Khobar and Dhahran. In the Middle East, the company operates from more than 20 locations.

PwC's non-audit services span areas like mergers & acquisitions and tax advisory, alongside its strategy and consulting work. For its most recent fiscal year, the Middle East was the fastest-growing geography within PwC UK, the corporate entity that includes the region. 

The Middle East generated £1.97 billion ($2.5 billion) in revenue for the company in the twelve months to June 30, up 26% from the same period a year earlier. The firm said its accounting models assumed revenue growth would remain robust in the region in 2025 and 2026, though it conceded that it might not reach last year's levels.

The region also ranks among the strongest globally based on revenue and profitability for the likes of McKinsey & Co. and Boston Consulting Group Inc. Business from the Saudi wealth fund has been a key driver of that growth.

The PIF is anchoring the kingdom's economic transformation plan, Vision 2030, and has set up about 100 portfolio companies. That includes Neom, a $1.5 trillion new city on the west coast, as well as other multibillion-dollar projects aimed at building out historic areas like Diriyah and AlUla into tourist destinations.

That's handed a lifeline to the sector, which is grappling with an extended slump. PwC, echoing its competitors, reported slower global growth in 2024 as demand for consulting work waned and revenue shrunk in its Australia and China businesses.