Robust performance across verticals helped PricewaterhouseCoopers Middle East report a double-digit growth in revenues for the fiscal year (FY) ended 2016 despite challenging economic conditions in the region.
Revenue grew 14% in FY2016, with the firm enjoying solid growth across the business, its spokesman said.
All of its core businesses – assurance, tax and legal, deals, consulting and Strategy& – performed strongly in FY16, with the firm expanding its service offering to be able to provide the full ‘strategy through execution’ capabilities to its clients, he said, adding income from Strategy& grew 22%, followed by consulting (18%), assurance and tax and legal (15% each), and deals (7%).
There was increased demand in particular for data analytics, digital, customer experience, restructuring, privatisation and value added tax (VAT) consulting work.
Positive influences including public sector transformation programmes in the UAE and Saudi Arabia in particular also contributed to the firm’s success in 2016, while revenues from privately-owned businesses also grew “significantly”, PwC said in its maiden Middle East Annual Review for 2016. Following the combination with PwC, Strategy& (formerly Booz and Company) recorded strong growth in FY16, building on its legacy of strong relationships, resolute focus on clients, deep industry insights, and outstanding talent.
Deals also recorded growth in FY16, especially in strategy which provides sector-specific insight in those sectors central to the region — healthcare; energy; infrastructure, construction and real estate; hospitality and leisure; and retail.
The firm also focused intensely on areas that are likely to be more relevant in a challenging market. Forensics, reflecting the impact of increased transparency and regulation on businesses and closer board and management scrutiny of financial performance had a strong year, PwC said.
Tax and legal services had another strong year, continuing to strengthen its leading capabilities international tax services, transfer pricing as well as helping clients consider fiscal reform and prepare for the introduction of VAT across the region.
“Tax reform and VAT were of course a key focus in FY16 and will continue to gain momentum in FY17 with both governments and companies. There is a strong desire from companies to have transparency on the legislation and the implementation date as this will be a significant undertaking for the vast majority of groups within the region,” Dean Kern, Tax and Legal Leader, said.
Also releasing the first-ever total impact measurement and management analysis, Hani Ashkar, Middle East Territory Senior Partner at PwC Middle East, said “we are very proud of the work we do in the region and the positive impact that we have on our clients, our people and our wider stakeholder community.”
“The combined impact of our profits and payroll reflects our gross value added (GVA) contribution to the GDP (gross domestic product) of the region, which is estimated at $640mn,” the report said.