PwC Aims to Restore Relations with Saudi Arabia After Activity Suspension

PwC is in discussions to restore relations with Saudi Arabia and its Public Investment Fund following a suspension of activities involving its holding company. The relationship is framed as a client matter rather than regulatory. Although the financial impact remains unclear, PwC relies heavily on its operations in Saudi Arabia for revenue.

PricewaterhouseCoopers (PwC) is currently engaging with Saudi Arabia and its sovereign wealth fund, the Public Investment Fund (PIF), in an effort to repair their relationship. The PIF is a significant client for PwC, employing more than 2,600 professionals from the firm’s global workforce for projects within the kingdom. Recently, the kingdom has suspended activities between the PIF’s holding company and PwC, although other portfolio companies affiliated with PIF may still collaborate with the consulting firm.

In a memo to employees, PwC clarified that the issues surrounding Saudi Arabia pertain to a “client” matter rather than a regulatory concern. This clarification followed a report by Bloomberg News, highlighting that PIF executives have been instructed to refrain from awarding new consulting projects to PwC until February 2026. A representative for PwC based in Dubai opted not to comment on the situation, and the PIF also declined to provide statements on the matter.

The precise financial implications of this suspension remain unclear, as Reuters was unable to ascertain the extent of potential business loss. PwC’s operations in the Middle East, which generated revenues of $2.5 billion in the last fiscal year ending on June 30, 2024, did not specify how much of this amount was derived from Saudi Arabia. Furthermore, PwC selected Riyadh as its regional headquarters in 2023, emphasizing the importance of this location for securing work on various projects within the kingdom.

In summary, PwC is actively working to mend its relationship with Saudi Arabia amidst a suspension of activities linked to its major client, the Public Investment Fund. Despite the pause in consulting opportunities for PwC, other related companies may still proceed with engagements. The financial ramifications of this suspension remain undetermined, but the firm’s significant revenue from the Middle East underscores the importance of this partnership. The developments will be closely monitored as PwC seeks to navigate this challenging situation.

Original Source: gulfbusiness.com