Alvarez & Marsal Sees Mixed Outlook for Middle East Growth Amid Saudi Spending Cuts

Alvarez & Marsal aims to expand its Middle East business by as much as five times over the next few years. Semafor reported that the advisory firm is on track to double its Gulf revenue in 2026 even after the Iran war reduced some expected growth and Saudi Arabia cut spending on consultants.

Collie Spink, A&M’s managing director and regional head for the Middle East, said in an interview that tailwinds remain stronger than headwinds from the conflict.

The firm expects revenue growth from advising the Saudi government on investment projects, mergers and acquisitions, tourism and hospitality developments, and localizing military manufacturing. Saudi Arabia ordered government entities to freeze payments to strategy advisers, management consultants, and law firms earlier this year.

The Saudi government denied it was delaying payments to consultants.

The kingdom is also trimming capital expenditure and cutting some projects in 2026. Saudi Arabia’s Public Investment Fund adopted a new strategy for 2026-2030 that places greater emphasis on bringing private capital into diversification projects. Spink said the kingdom is making policy and regulatory changes to encourage foreign direct investment.

“I don’t think the consulting market is growing,” Spink said.