Financial Consulting Sector
Are you thinking of investing but your ideas are scattered? Is your company facing a financial crisis? Taxes delaying your investment decision? Financial consulting will organize your thoughts in this report
by: Waleed and Sara
What is the financial consulting sector? One of the largest consulting sectors in the world, the financial consulting sector is a fundamental component of the global economic system. It provides specialized services to individuals and businesses to help them with their financial decisions. This sector includes offering advice in areas like investment, financial planning, risk management, taxes, and financial evaluation.
According to a report by The Insight Partners, the global financial consulting market reached about 95.67 billion USD in 2023, and the financial consulting market in Saudi Arabia is estimated to be around 10 billion SAR. Foreign companies control 90% of this market.
Importance of the sector:
Financial consultants help individuals and companies make informed financial decisions, such as their investments and retirement planning, which enhances their financial stability. They also provide strategies for managing financial risks, reducing exposure to risks for individuals and companies. Additionally, they work on developing long-term financial plans, contributing to ensuring the sustainability of financial growth
Saudi Companies in the Financial Consulting Sector:
AFMC Financial and Administrative Consulting:
Provides specialized financial and administrative consulting services.
Unique Steps Consulting:
Offers customized solutions to improve financing and investment processes, through market analysis, investment opportunity evaluation, and portfolio management
Saudi Initiatives in the Sector:
Financial Sector Development Program: Launched in 2018 as part of Saudi Vision 2030, this program aims to enhance financial institutions and develop the Saudi financial market to become global.
Localization Initiative in the Consulting Sector: As part of Vision 2030 goals, Saudi Arabia is working to reduce dependence on foreign labor in high-skilled jobs.
The main goal of financial consulting is to help individuals and companies maintain their financial stability. It also aims to improve financial awareness among individuals and communities, enhancing the general financial culture.
The most prominent companies in the global financial consulting sector:
1 / McKinsey & Company: Provides strategic financial consulting to major institutions across various industries.
2 / Boston Consulting Group (BCG): Specializes in providing financial consulting in areas like growth strategies, restructuring, and mergers & acquisitions.
3 / Deloitte, PwC, EY, KPMG: The Big Four companies offer a comprehensive range of financial consulting services, including auditing, tax consulting, and governance-related consulting.
What is the future of the sector?
The sector is expected to evolve with technology and artificial intelligence, enhancing data analysis and decision-making accuracy. With growing wealth and increasingly complex investments, the demand for financial consulting will rise, improving efficiency and introducing innovative solutions.
The government is seeking to enhance the role of national consulting offices in local projects through initiatives like the Financial Sector Development Program, the Spending Efficiency Authority, and the Etimad platform, to empower them to grow and expand.
The sector is seeing a significant increase in demand, particularly from small and medium-sized businesses that require specialized financial consulting to improve their operations and expand into new markets.
The cost of a single consultation in Saudi Arabia ranges from hundreds of thousands to millions of riyals, depending on the type of service, its complexity, and the client's need for advanced solutions.
The financial consulting sector is one of the vital sectors that contributes to the stability of the economy and business growth at both global and local levels. The increasing demand for consulting, the innovation of digital solutions, and the shift toward sustainable investments are all factors pushing the sector toward expansion and success in the future.
Resources:
https://www.smartcapitalmind.com/what-is-financial-consulting.htm
https://www.ifconsultants.org/finconsulting.html
https://www.theinsightpartners.com/ar/reports/financial-advisory-market