Middle East and Africa Management Consulting Services Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The MEA Management Consulting Services Market size is estimated at USD 9.75 billion in 2023, and is expected to reach USD 11.98 billion by 2028, growing at a CAGR of 4.20% during the forecast period (2023-2028).

The market is studied based on the revenue generated from management consulting services across the Middle East and Africa.​

There is an increased need for management consulting services due to strong economic development, regulatory changes in the financial sector, outsourcing back-end operations to low-cost economies, and public investments. Faster economic growth, the introduction of digital consulting, and the increase of globalization are expected to accelerate the market's growth in the region.

Business management consultants are still figuring out new business models and digital technology. To retain a positive market outlook, consultancies plan to implement comprehensive digital strategies and remodel existing business and operational techniques.

The consulting services business is undergoing a digital transformation. There are several opportunities to improve client experience. Educating customers on using analytics is becoming a vital component of modern consulting. Consultants are learning new skills to keep ahead of the disruption.

New consulting firms are emerging where virtual business models are being used, supported by cutting-edge technology that enables them to accomplish more with less. Simultaneously, as technology advances, corporate clients are increasingly eager to solve more complex problems in-house, providing new difficulties for global consulting companies as outsourcing becomes less required. Clients may increasingly grasp better how their profession operates in real-time, free, or at a much-reduced cost.

During the COVID-19 pandemic, the region's technical progress reached a particular level. Every job, from management to operations, has been riding the tide of the technological revolution. With assistance from consulting services, time and money spent by management and project teams on meetings, logistics, resources, and operations are managed more productively. The end-user industry participants recognized the value of management consulting services during the pandemic and are anticipated to be assisted in optimizing resources in the post-pandemic situation.

MEA Management Consulting Services Market Trends

Life Sciences and Healthcare Sector to Dominate the Market

• A healthcare consulting firm serves as a contracted third-party advisor to companies in the healthcare industry. Every healthcare organization, including hospitals, doctor's offices, pharmaceutical companies, medical equipment companies, and others, could hire one advisory firm to improve organizational competency.
• The role of a healthcare consulting firm is to optimize efficiency, revenue generation, and structural improvements. This can take many forms, with various specializations emerging within the healthcare consulting sector.
• The life sciences and healthcare industry in management consulting services benefit from various consulting services, including strategy and business planning, healthcare transformation and integration, digital health and health IT, healthcare quality and patient safety, healthcare operations and process optimization, healthcare revenue cycle management, regulatory compliance, and risk management, pharma, and biotech commercial strategy, healthcare analytics and data insights, healthcare policy, and advocacy.
• The MEA region has a growing population and increasing healthcare needs. There is a demand for improved healthcare infrastructure, access to quality healthcare services, and better healthcare outcomes. Management consulting firms are crucial in advising healthcare organizations on strategic planning, operational efficiency, and process optimization to meet the rising demand effectively.
• Among countries, Saudi Arabia is expected to register significant growth rates in the forecast period. Saudi Arabia has been investing heavily in its healthcare sector and has ambitious plans for its development. For instance, the Ministry of Health (MOH) has been allocated SAR 80,751,614 (USD 21,533,763) for FY 2023. The assigned budget, which accounts for 7% of the state budget, included a variety of expenses, such as employee compensation (CE), goods and services, social benefits, program and project expenditures, and other costs.​
• In addition, as per The International Trade Administration (ITA), the Saudi Arabian government intends to invest more than USD 65 billion in Vision 2030 to build the nation's healthcare system. Additionally, it targets the privatization of 2,300 primary health centers and 290 hospitals, increasing private sector participation from 40% to 65%. Further added, Saudi Arabia has comprehensive plans to increase the use of digital health. These include a USD 1.5 billion investment in health IT, a digital revolution, and an increase in the usage of telemedicine. Such instances would create opportunities for management consulting firms to support the healthcare industry in the country.

Saudi Arabia Holds Significant Market Share

• Saudi Arabia's management consulting services market has been increasing significantly, supported by the strategies of the government and businesses in the country to diversify their economies from only the oil sector and cope with the global landscape. The consulting vendors have contributed significantly to these businesses by providing strategic advice, operational improvements, and support in deploying new technology, which presents an opportunity for market vendors in the country.
• The growth in the market has been driven due to Saudi Vision 2030, a comprehensive strategy to minimize the country's dependency on oil and build new economic sectors because Saudi management consulting firms have been involved in various activities in keeping with this planned Initiatives to enhance public services, infrastructure expansion, renewable energy, and digital transformation.
• For instance, in February 2023, PwC received two public sector contracts with Saudi Arabia's Digital Government Authority and a strategic alliance with the Institute of Public Administration. Under the aegis of Vision 2030, these contracts would assist the Saudi government in advancing its enormous digital agenda.
• The management consulting services in Saudi Arabia have been witnessing growth in the healthcare segment due to the rapidly advancing patient experience, quality of care, and efficiency through digitizing its healthcare system, which is creating opportunities for local vendors, notably in the sectors of strategic consulting and technology advising in healthcare, which is fueling the market growth in the country.
• For instance, in May 2023, Ash & Maple Management, a global firm in the management consulting industry, and LocalEyes, a Saudi-based firm that specializes in local content and economic offset strategies for multinational clients in industries like healthcare and pharmaceuticals, announced their alliance to support the demand of consulting services in the healthcare sector in the country.
• Additionally, The International Trade Administration said in July 2022 that Saudi Arabia has been responsible for 60% of the GCC's healthcare spending, and the government continues to place a high premium on this industry, which has accounted for 14.4% of its 2022 budget behind education and the military. Privatizing the healthcare industry has been included as the government’s goal, creating an opportunity for management consulting firms due to their expertise in providing business transformation services.

MEA Management Consulting Services Industry Overview

The Middle East and African management consulting services market is moderately fragmented, with both local and international players having decades of industry experience. ​The vendors are incorporating a powerful competitive strategy by leveraging their expertise and are also spending a large chunk of their money on advertising.​ Significant players in the market are Ernst & Young Global Limited, Deloitte Touche Tohmatsu Limited, Mckinsey & Company, AKMC Management Consultancy, and Decision Management Consultants.

In January 2023, The Jordan Digital Centre (JDC), an innovative facility with offices in Amman that offers professional consulting, digital, and technology services to clients throughout the Middle East market, was established by Deloitte. The establishment of JDC is a strategic step in the recognized professional services company's growth objectives, scaling up its investment in regional talent and producing effect for customers.

Further, in October 2022, Deloitte announced the establishment of a new company in Egypt that will be a part of Deloitte Middle East. The declaration follows a mutual decision to dissolve the affiliation with Saleh, Barsoum & Abdel Aziz for both businesses to pursue their strategies in Egypt. This action is a component of Deloitte's ongoing Middle East presence development.

In September 2022, EY announced plans to divide its audit and consultancy businesses into two firms. The change would set EY's accountants apart from its consulting division, which is expanding rapidly and offers guidance on tax-related matters and other matters.

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