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Most companies in the Gulf do not plan to cancel consulting projects because of the Iran war, but instead shift work towards cyber security, a report has found.
Only 10 per cent of companies surveyed by Source Global Research for its annual report on the Gulf consulting market plan to pause current projects as a result of the conflict, while 40 per cent will carry on as planned. Nearly half (48 per cent) of companies are considering shifting work to bolster their cyber security and digital defences.
“This highlights a broad agreement that their current priority of digital investment will also help companies to overcome many of the challenges brought on by the conflict,” the report found.
Cyber security will remain the fastest growing consulting service across the Gulf this year and is forecast to grow 19 per cent to $1.8 billion, the report found.
Cyber security has become a leading concern for Gulf states as they build their digital economies. Last week, the UAE Cyber Security Council said a rise in remote working had fuelled a spike in attacks from cyber criminals attacking unsecured home routers, putting the data of employees, institutions and businesses at risk. The council said remote work-related cyber incidents had increased by 40 per cent over recent years.
Ever since US and Israeli air strikes on Iran began on February 28, cyber security analysts have also warned of an increase in the threat of cyber attacks from Iran and groups seeking to exploit the conflict.
“Consulting demand across the region is not expected to be adversely affected by the conflict, as investment priorities remain unchanged, such as strong digital transformation,” said Dane Albertelli, senior research analyst at Source Global Research.
“The demand from companies for help in building up their resilience, managing new risks, and strengthening cyber security capabilities will ensure that this consulting service line’s growth rate stands head and shoulders above the rest in 2026,” Mr Albertelli added.
Although business confidence has dropped across the Gulf region because of the war, the consulting market is expected to grow 13 per cent annually this year – up from 12 per cent last year – to $11.1 billion.
The Gulf states have been facing attacks by Iran, which says it is retaliating for strikes by the US and Israel.
The report found that while 77 per cent of respondents expect the impact of the war to last a long time, there are no signs of panic. “As the situation is ongoing, it is currently impossible to predict whether the medium- to long-term consequences for the consulting market will be large or relatively limited,” the report added.
Hiring trends in the sector will also “remain unaffected” as clients were already focusing on resilience and efficiency before the war started, Mr Albertelli told The National.
“If anything, the war has made them double down on their previous objectives which is investment in digital transformation and cyber security. They are also now much more focused on risk planning and how AI can help them predict future shocks.”
However, he also added that most people in the industry expect the war to end quickly and are planning accordingly. “If this became protracted, I think that’s when we’ll see a big change in investment and hiring,” he said.
While the Gulf consulting market’s growth rates have slowed from an average of about 20 per cent between 2021 and 2024, the region still outperforms its counterparts, the report found.
Growth was the sharpest in the UAE last year, up 12.8 per cent to $3.2 billion, followed by Saudi Arabia, the largest market in the region, which grew by 12.6 per cent to $5.3 billion, and Qatar (9.6 per cent). Kuwait, Oman and Bahrain grew between 5 per cent and 6.5 per cent respectively.
For this year, the trend is expected to continue, with the sector set to expand by 14 per cent in the Emirates, followed by Saudi Arabia (13 per cent) and Qatar (10 per cent).
In terms of sectors, technology and innovation ($2.4 billion last year) remain the largest service line for consulting support, along with risk services (up 12.6 per cent last year) and strategy (up 8.8 per cent).
“Technology-focused pitches won’t land with clients in the region without a firm making it clear how the technology can be applied in a specific sector,” Mr Albertelli said. “This sector know-how is what will set consulting firms apart from tech challengers in 2026.”
Energy and resources – which grew 20.6 per cent last year, also remain a key sector of focus. “This is even more urgent as lots of activity in the GCC region, like the building of data centres, is energy and resource intensive,” he said.
While some gigaprojects in the region are being cut back, especially in Saudi Arabia, core infrastructure projects remain on track, also providing opportunity, the report said.
Overall, the consulting market in the Gulf has become much more mature, with spending being squeezed by tightening budgets and a reluctance to reward generic work.
Consulting companies must adopt in-demand technology skills along with deep sector knowledge to add value.
“With demand from companies and governments no longer an endless stream of lucrative contracts, consulting firms must play to their core strengths if they are to adapt to the slightly more cautious environment in the region,” said Mr Albertelli.
