In a surprising move, Saudi Arabia’s Public Investment Fund (PIF) has imposed a one-year suspension on PricewaterhouseCoopers (PwC), barring the global consulting and auditing giant from advisory and consulting workfor the fund and its subsidiaries. The decision, effective until February 2026, does not impact PwC’s auditing services but marks a significant setback for the firm’s consulting operations in the Kingdom.
With PIF being one of the largest sovereign wealth funds in the world, managing an estimated $925 billion in assets, this decision has major implications for PwC and the broader consultancy sector in Saudi Arabia. The move is seen as a strategic shift in the Kingdom’s approach to external advisory partnerships amid its ambitious Vision 2030 economic transformation plan.
Why Did PIF Block PwC?
While official reasons for the suspension have not been publicly disclosed, there is speculation that internal assessments, project performance concerns, or strategic shifts within PIF’s business structure may have influenced the decision. PwC has been deeply involved in Saudi Arabia’s transformation initiatives, offering services in mergers and acquisitions, tax advisory, risk management, and business strategy development.
This action follows similar moves by Gulf nations to exert greater control over international consultancies, ensuring that foreign advisors align with national interests. The Saudi government has been increasingly emphasizing local expertise and tighter oversight over foreign firms handling sensitive economic projects.
PwC’s Role in Saudi Arabia
PwC has been a major player in Saudi Arabia’s consulting and auditing landscape. The firm employs over 2,000 professionals across the Kingdom and was one of the first international firms to establish its regional headquarters in Riyadh in line with new policies requiring multinational firms to base their regional operations in Saudi Arabia to qualify for government contracts.
The Middle East has been a high-growth market for PwC, contributing $2.5 billion in revenue for the fiscal year ending June 2024, a 26% increase from the previous year. Saudi Arabia has been one of PwC’s most lucrative markets, with the firm advising on large-scale infrastructure projects, financial reforms, and corporate governance frameworks.
With the PIF ban, PwC faces a temporary roadblock in one of its most critical markets, but it remains unclear whether the suspension will extend beyond 2026 or be lifted earlier based on developments.
Impact on Saudi Arabia’s Business and Vision 2030 Projects
The Public Investment Fund plays a central role in Saudi Arabia’s Vision 2030, the country’s strategic initiative to diversify its economy away from oil dependence. The sovereign wealth fund manages some of the Kingdom’s largest projects, including:
- Neom, the $500 billion futuristic megacity project.
- Red Sea Global, an ambitious luxury tourism development.
- Saudi Aramco’s expansion efforts in renewable energy and technology.
- Investments in tech, sports, and entertainment sectors, including its recent push into global football and motorsports.
Given PwC’s previous involvement in advising on these large-scale projects, the suspension could open doors for rival firms like Deloitte, KPMG, and EY to gain greater influence in Saudi Arabia’s consulting market.
There is also speculation that the decision signals PIF’s desire to rely more on in-house expertise and local advisory firms instead of depending on global consulting giants.
What’s Next for PwC in the Region?
Although PwC remains active in Saudi Arabia, the suspension may push the firm to redirect its focus to auditing and non-PIF-related consulting work. Additionally, PwC’s regional competitors will likely seek to capitalize on the opportunity, potentially securing major government-backed contracts.
PwC has yet to issue an official statement on the suspension. However, given the firm's long-term investment in Saudi Arabia, it is expected to navigate the situation strategically, possibly by strengthening local partnerships, restructuring its advisory operations, and reinforcing its commitments to Vision 2030.
Meanwhile, businesses operating within Saudi Arabia will be closely watching whether this move extends to other international advisory firms, potentially signaling a broader shift in the Kingdom’s engagement with global consultancies.