The growth in Saudi Arabian consultancy boosts PwC's UK partner remuneration
Experiencing a rapid growth
A surge in PwC's consulting business in the Middle East, particularly in Saudi Arabia, played a crucial role in preventing a significant decline in pay for the firm's UK partners last year. Despite rising costs impacting profits, the Middle East operations saw a substantial 40% increase in revenues to nearly £1.5 billion for the 12 months ending in June. This boost offset a decrease in average earnings for UK partners to £906,000, down from £1,025,000 in the previous year when a business unit sale provided additional income.
The Middle East business, contributing a quarter of the total revenues, experienced rapid growth due to strategic investments in Saudi Arabia and other Middle Eastern regions, particularly in oil divestment. Kevin Ellis, the chair and senior partner of the UK and Middle East firm, attributed this growth to the strong focus on selling consultancy services, particularly in Saudi Arabia, where the firm primarily serves government and state-owned entities. The overall revenues for PwC UK, including the Middle East operations, reached £5.8 billion, reflecting an 18% increase on a like-for-like basis for the year ending in June. Profits, however, decreased from £1.5 billion to £1.3 billion, influenced in part by rising costs and a £100 million investment in technology, including artificial intelligence tools and training. Last year, the firm implemented substantial pay raises and provided supplements to lower-salaried staff to cope with escalating energy costs, factors that did not recur in the current year.
Consulting revenues at PwC UK witnessed a remarkable 30% rise to £1.7 billion, a trend attributed to companies adapting to technological changes, supply chain disruptions, and inflation. The audit and tax practices also experienced growth, with revenues increasing by nearly one-fifth to £1.4 billion and £1.2 billion, respectively. Despite concerns over the escalating costs associated with the Big Four auditing accounts, PwC's audit unit benefited from increased demand for assurance over non-financial disclosures. Notably, the firm's two smallest business lines, deal and risk advisory, saw more modest growth rates of 6%, below the inflation rate. As PwC continues to navigate market dynamics, Kevin Ellis expressed openness to attending a meeting between business leaders and Crown Prince Mohammed bin Salman during the latter's potential visit to the UK later in the year.
Comments