About 60 partners and 1,500 employees were laid off by PwC’s Middle East division as the Big Four accounting firm’s expansion in the region is being severely slowed by a dispute with Saudi Arabia’s sovereign wealth fund.
According to various media reports, the business started to reduce the number of positions in February after Saudi Arabia’s Public Investment Fund placed a harsh one-year restriction on new consulting contracts for PwC. Reports further stated that this made a larger decline in work for consultancies in the kingdom worse as Riyadh reassesses its massive expenditures over the previous ten years and reprioritises initiatives that had benefited western consulting firms.
PwC Reorganising its Operations in Middle East Region
As per media reports citing internal sources, PwC has already started to reduce positions and evaluate performance in the area. According to a media report, PwC’s leadership started figuring out how to cover a potential “large” income deficit in the company’s most recent fiscal year and the following one after the PIF, a significant client, put the firm on “the naughty step”. There is also a change in leadership in the region.
According to a staff-wide email written on September 19 by PwC UK leader Marco Amitrano, Laura Hinton, managing partner, will take over the Middle East business in October, working alongside Hani Ashkar, the company’s current senior partner. A person knowledgeable on the leadership changes, however, stated that Hinton is anticipated to become the only senior partner after a year.
The action was taken five months after the PIF ban directly led to the resignation of two top leaders. Massive PIF projects, such as Neom, a futuristic $500 billion development along the Red Sea coast, featured PwC as one of its advisors. The restriction, however, was the consequence of “friction and angst” prompted by the accounting firm’s desire to hire Neom’s top internal audit officer and a reluctance to take on audit work that would interfere with more lucrative consulting contracts, according to persons familiar with those events.
Revenue growth at PwC’s Middle East division, which is controlled by the UK firm and has been its success story for the past three years, fell to 0.4% in the year to June 2025 from 26% in the previous 12 months, according to figures released recently.
PwC’s Layoffs Targeted Consulting Roles in Middle East Region
Partners and employees engaged to work on “transformational” projects have been especially affected by the cuts, which have mostly targeted consulting positions in the firm’s Middle East division.
Media reports also mentioned that PwC had about 11,000 employees and 500 partners in the region at the end of its most recent fiscal year, most of whom were in Saudi Arabia and the United Arab Emirates.
The region’s headcount has remained relatively stable despite the reductions, thanks to fresh recruitment in sectors where customer demand is still high. The firm promoted 62 new partners in June and consistently recruits a lot of lower-level employees. PwC still has plans to expand in the Middle East, they added.
Quick
Shots
•Saudi Arabia’s Public Investment Fund
(PIF) imposed a one-year ban on new consulting contracts with PwC.
•PwC’s revenue growth in Middle East
fell to 0.4% in FY25, down from 26% in FY24.
•Laura Hinton to take over PwC Middle
East in October, succeeding Hani Ashkar over time.
•Ban followed PwC’s attempt to hire
Neom’s internal audit officer and reluctance on audit work.
According to internet observer NetBlocks, damage to subsea cable infrastructure in the Red Sea caused extensive interruptions for internet users in India, Pakistan, and areas of the Middle East. The disruption has brought attention to how vulnerable the world’s digital infrastructure is, as it is mostly dependent on underwater cables for connectivity.
Reuters claims that the outage’s effects extended beyond South Asia. Online service access issues were also observed by users in the United Arab Emirates, especially for those utilising the Etisalat and Du networks.
NetBlocks verified the interruptions and linked the issue to cable infrastructure malfunctions close to Jeddah, Saudi Arabia.
Possible Causes of Red Sea Cable Damage
However, it is still unclear what or who damaged the subsea cables. Unintentional anchor drags, natural disasters, or, in rare instances, deliberate sabotage are frequently blamed for such outages. A sizable amount of the world’s internet traffic is carried by undersea fiber-optic cables, which are primarily concentrated in the Red Sea region.
Authorities in the tiny, oil-rich country of Kuwait also reported that the FALCON GCX cable that crosses the Red Sea had been severed. A vital component of the worldwide internet infrastructure, submarine cables are susceptible to intentional attacks or ship anchors. It usually takes weeks to repair, and specialised vessels are needed to find and repair the damage.
The disturbance occurs as Houthi rebels in Yemen continue their attacks connected to the conflict between Israel and Hamas. Although there has been increased conjecture regarding their involvement in attacking submerged infrastructure, the group has denied any prior accountability.
Microsoft Diverted its Internet Traffic
Microsoft, a multinational technology giant, said that one of the services impacted by the event was its cloud computing platform, Azure. Microsoft warned in a statement that “multiple undersea fibre cuts in the Red Sea” may result in greater latency for Azure users.
According to Reuters, Microsoft has rerouted traffic via other routes outside of the Middle East in order to lessen the impact. The business explained that other international services are unaffected, even if internet traffic passing through the area can experience delays. According to Microsoft, the business does anticipate certain traffic that has previously passed through the Middle East to have higher delay. There is no effect on network traffic that does not pass through the Middle East.
Since undersea cable systems are the foundation of international internet services, the event highlights growing worries about their security and upkeep. Businesses, cloud services, and individual users can all be impacted by outages in these networks, according to experts, which can spread across countries. Maintaining the reliability of these vital infrastructure systems is now more important than ever due to the growing reliance on cloud platforms like Amazon Web Services and Microsoft Azure.
Quick Shots
•India, Pakistan, UAE among most affected regions;
UAE users of Etisalat and Du faced disruptions.
•Outage traced to cable malfunctions near Jeddah,
Saudi Arabia, says NetBlocks.
Amazon Web Services (AWS) and HUMAIN, the recently established Saudi business in charge of advancing AI innovation in the Kingdom and around the world, on 13 May revealed their intentions to invest more than $5 billion in a strategic cooperation to establish a ground-breaking “AI Zone” in the Kingdom.
To further Saudi Arabia’s goal of becoming a global leader in AI, this first-of-its-kind AI Zone will combine a number of cutting-edge capabilities, such as specialised AWS AI infrastructure and servers with top-tier semiconductors, UltraCluster networks for quicker AI training and inference, AWS services like Bedrock and SageMaker, and AI application services like Amazon Q.
In Saudi Arabia, AWS has already declared and is constructing an AWS infrastructure region that will be operational by 2026. To establish this new area for AWS, Amazon is spending US$5.3 billion (about 19.88 billion Saudi riyals) in Saudi Arabia.
As part of AWS’s long-term commitment to provide its top-notch infrastructure and services to Saudi Arabia, the new AI Zone announced today represents an additional investment to increase the Kingdom’s demand for advanced AI capabilities both locally and globally.
Saudi Arabia’s Vision 2030
This partnership is in line with Saudi Arabia’s Vision 2030 and expands on the Kingdom’s 2024 commitment to invest in creating an AI-powered economy. It is a major step in achieving Saudi Arabia’s goal of becoming a global leader in AI.
AWS will introduce its cutting-edge server and network infrastructure capabilities to Saudi Arabia along with its machine learning and artificial intelligence services, such as Amazon SageMaker AI, Amazon Bedrock, and Amazon Q, which are fully managed solutions for developing and expanding generative AI (genAI) applications.
Businesses and governmental entities in Saudi Arabia can create GenAI apps with security, privacy, and responsible AI by using Amazon Bedrock to access high-performing models from top AI startups.
In addition to being the most proficient coding assistant in the world, Amazon Q helps businesses create GenAI-powered assistants that can answer queries, produce content, summarise information, and finish tasks using enterprise data.
HUMAIN intends to use AWS technologies to create AI solutions for its end users as a result of this partnership. Additionally, HUMAIN and AWS will collaborate to create a common marketplace for AI agents, which would make it easier for the Saudi Arabian government to find, implement, and oversee AI software.
Together with leading the widespread adoption of AI in businesses and sectors throughout the Gulf Region and beyond, the partnership aims to promote the development of Large Language Models (LLMs), such as Arabic Large Language Models (ALLaM).
Accelerating the Digital Transformation of the Region
Important industries like government, energy, healthcare, and education will be able to accelerate their transformation.
AI-powered tools that can help patients receive early disease diagnoses, personalise learning experiences for students, and boost productivity across essential upstream and downstream government administration processes are all on the horizon.
In collaboration with HUMAIN, the AWS Generative AI Innovation Centre will accelerate use cases like these, allowing clients—from the biggest corporations and fastest-growing startups to government organisations—to scale GenAI roadmaps and workloads, resulting in the fair and effective provision of essential services for a greater impact on society.
According to its draft red herring prospectus (DRHP), PO-bound consumer services startup Urban Company has started to wind down its step-down subsidiary in Saudi Arabia since it was unable to turn a profit.
The startup in consumer services announced that it has begun moving its operations in Saudi Arabia to a joint venture that was established in 2024 with the goal of eventually closing the step-down subsidiary, Urban Company Arabia for Information Technology. Urban Company Arabia, which was incorporated in 2021, had a 182% increase in its pre-tax loss from INR 8.3 Cr to INR 23.4 Cr in the nine months ending December 31, 2024 (9M FY25).
For FY24, FY23, and FY22, its pre-tax loss was INR 14.1 Cr, 17.7 Cr, and 10.1 Cr, respectively. Through Urban Home Experts, the startup acquired a 100% indirect investment in Urban Company Arabia, an online marketplace that enables users to look for and hire service providers for their business and home needs.
According to the DRHP, the Group has begun operations through Waed Khadmat Al-Munzal For Marketing, a joint venture company based in the Kingdom of Saudi Arabia, as of January 1, 2025. The goal of this venture was to eventually shut down Urban Company Arabia for Information Technology, a step-down subsidiary.
Shortage of Service Professionals
Urban Company added that during FY25, FY24, FY23, and FY22, it encountered shortages of service professionals in its international markets, including the United Arab Emirates, Saudi Arabia, and Singapore, and that supply constraints might persist in the future.
“There is no assurance that we will not face any supply shortages or that we will be able to find alternatives, which could have a material adverse effect on our business, results of operations, and financial condition,” the statement stated, even though the supply shortage has not yet had a negative impact on its business operations.
Urban Company, a tech-enabled, full-stack online marketplace platform that allows consumers to hire professionals for domestic services, was founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra. In order to raise INR 1,900 Cr through an initial public offering (IPO), it submitted its draft red herring prospectus (DRHP) to SEBI last month.
The IPO would include an offer-for-sale component of INR 1,471 Cr and a new issue of shares valued at INR 429 Cr. In the OFS, current investor Accel India will sell shares of Urban Company for INR 433 Cr, and Bessemer India Capital Holdings II Ltd would sell shares for INR 173 Cr. Elevation Capital and VY Capital are among the other investors taking part in the OFS.
Founders will not Participate in OFS Round
Between September 2024 and February 2025, the founders of Urban Company sold shares for INR 779 Cr in secondary transactions prior to the IPO.
They are not going to take part in the OFS round. From a deficit of INR 57.8 Cr in the same period last year, the consumer services unicorn posted a profit before tax of INR 27.1 Cr in the 9M FY25.
From INR 600.9 Cr in 9M FY24 to INR 846 Cr during the period under review, operating revenue increased 41%. By doing this, Urban Company has joined a number of other cutting-edge software firms that have announced plans for massive initial public offerings.
Additionally, startups like Physics Wallah, boAt, and Smartworks have submitted draft IPO documents to SEBI. The market’s watchdog approved BlueStone and Aye Finance’s initial public offerings (IPOs) last month.
The Middle East or the Gulf region has been basking on the oil-rich economy for ages. Since the discovery of oil (around 1908) in the region, the entire province has gone rags to riches. This development did not happen over the night as the first motor vehicles didn’t roll off the assembly line until 1908. There was a dearth of vehicles on the highway. Many ships and power stations used coal. The Middle East’s transportation, water, and sewage infrastructure were severely lacking or nonexistent in 1945. Many roads were barely dirt trails, and there were no deep sea ports for ships to offload their cargo. Many Middle Eastern nations were able to afford better infrastructure thanks to the rising demand for oil. Because of hundreds of engineering projects that were completed in the 1950s and 1960s, entire populations’ lives were changed. This was reminiscent of the work done in the 19th century by British engineers known as the Victorians. But things are changing again now that everyone is aware that the globe will quickly reach day zero if oil consumption continues at its current rate. The whole globe is on the lookout for long-term alternatives to oil in order to fight this trend. The Middle Eastern countries are likewise racing to be the first to achieve a sustainable and environmentally friendly economy.
The oil and gas industry is seeking cleantech innovations to help them transition to the energy of the future, as governments around the world are aiming for reduced carbon emissions and a larger share of renewables in their energy mix. According to a report by the International Monetary Fund (IMF), an organization that works to achieve sustainable growth and prosperity for all of its 190 member countries, It seems like major economies are dead set on finding alternatives to fossil fuels, and in response, major automakers have pledged to switch from gas-powered to electric vehicles in the not-too-distant future. An unstable adjustment may be in store for oil-dependent economies as a result of this change, which will bring the oil market in line with climate goals but may have far-reaching consequences that extend beyond their boundaries.
Mordor Intelligence projects a renewable energy industry in the Middle East with a yearly growth of 13.43% from 2023–2028. The use of more renewable energy sources is the goal of multiple government programmes. One example is the goal of the United Arab Emirates (UAE) to have half of its energy come from renewable sources by the year 2050.
Where the Black Gold Flows: Top 10 Oil-Rich Countries
MENA Region All Up For Energy Storage Race
The magnitude of the energy revolution necessitates massive quantities of raw materials such as copper, lithium, nickel, graphite, and others. Electric cars, wind turbines, solar panels, batteries, and other vital technologies that are reducing our reliance on fossil fuels need materials extracted from the Earth’s core.
Worldwide, nations are grappling with the issue of the supply of essential resources for the energy transition being woefully inadequate in comparison to the expected demand. The World Bank’s Climate-Smart Mining team predicts that the demand for lithium, cobalt, and graphite will climb by 500%, while the demand for nickel and copper will increase by 100% and 7%, respectively.
The energy system transformation is a worldwide undertaking. Substantially important materials for decarbonisation will come from Africa. Whatever the case may be, interest in potential new mining sites is on the rise due to the global quest for zero pollution.
Starting in western France and continuing eastward through the Middle East and “Daylighting” in Malaysia, the Tethyan mineral belt spans two continents and 33 nations, providing a geological basis. The area is rich in base metals. Regardless, a lot of it has been under-investigated thus far, which makes it perfect for discovering anything new.
According to Quayle Resources’ MD Darryn Quayle, “The Belt” is a mostly uncharted region of the earth, in contrast to mining zones in Africa and the Rockies. Our research, however, points to the existence of substantial underground reserves of energy transition essentials like copper and lithium.
Leading Oil-Producing Countries Worldwide
The Domestic Impact Of The Climate Catastrophe Is Substantial
As reported by Deutsche Welle, Germany’s international broadcaster, keeping oil exports going will bring substantial money for the region, but it might endanger its very survival. Rising global temperatures are an inevitable consequence of other nations’ continued use of fossil fuels sourced by Saudi Arabia and its neighbours. Particularly hard hit will be the Gulf region.
Assuming a 1.5 °C (2.7 °F) increase on a worldwide scale by 2050, the Gulf region could see a 4 °C increase. Already, the area has experienced heat waves with temperatures above 50 degrees Celsius, and the average temperatures are significantly higher than the global average.
In certain climate change scenarios, the Gulf’s average summer maximum temperatures will surpass what is considered survivable. Dust storms will become more intense as a result of planetary heating, and low-lying regions may be impacted by higher sea levels.
You should know that the money tap will be turned off eventually. There are plans to develop new sources of income because the International Monetary Fund has warned that the region’s treasuries would be emptied in fifteen years due to falling oil demand.
The Saudi government is putting its money into green hydrogen production and, in tandem with the United Arab Emirates, is establishing a renewable energy industry to produce commodities like aluminium. Less environmentally friendly, it is also beginning to produce plastic and petrochemicals using its hydrocarbons.
There has been a lot of talk about the enormous economic potential of exporting solar power. Solar panels installed on one square metre of land in a Gulf country might replace 1.1 barrels of oil in annual energy production.
What is the Tethyan mineral belt, and how is it relevant?
This belt stretches from western France to Southeast Asia and is rich in base metals.
It’s a largely unexplored region with potential for new discoveries of minerals needed for the energy transition.
What are the challenges of the energy transition for the Middle East?
The region faces extreme heat and water scarcity, which could be exacerbated by climate change.
A rapid shift away from oil could cause economic instability.
Why is the Middle East looking to move away from oil?
The global push for reduced carbon emissions and a shift towards renewable energy sources is putting pressure on the Middle East to diversify its economy.
Declining demand for oil due to the rise of electric vehicles and alternative energy sources could lead to financial difficulties for oil-dependent economies.
The Kingdom of Saudi Arabia is situated in the furthermost part of southwestern Asia. On its eastern borders lies the Arabian Gulf, United Arab Emirates, and Qatar, the Red Sea on its west, Kuwait, Iraq, and Jordan in the north, and Yemen and Oman in the south. Its diverse topography includes coastal plains, mountains, valleys, deserts, sand hills, and lava fields. This uniquely diverse topography means that the Kingdom witnesses a varied climate in different regions. Currently, the kingdom is helmed by Saudi Arabia’s de facto ruler, crown prince, Mohammed bin Salman.
It is the crown prince’s initiative, a project named ‘NEOM’ that forms a part of the Saudi vision 2030. The project aims to diversify the country’s economy with a view to reducing its dependency on oil. Currently, the proven oil reserves within the country are the second largest in the world, corresponding to over 50 years of production at current rates.
The name NEOM is a portmanteau, in that its first three letters are an ancient Greek prefix – ‘neo’ means new while the fourth letter ‘M’ represents the first letter of the crown prince’s name and the first letter of the Arabic word ‘Mustaqbal’, which means ‘future’. Literally, the meaning of the word NEOM means new future.
NEOM is a planned smart city in the Tabuk Province of northwestern Saudi Arabia. A part of the Saudi Vision 2030 initiated by the crown prince, the project site is located north of the Red Sea, east of Egypt across the Gulf of Aqaba, and south of Jordan. The total area of this futuristic city is 26500 square km. NEOM’s plan includes multiple regions that include a floating industrial complex, a global trade hub, tourist resorts, and a linear city that will be powered by renewable energy sources.
Saudi Arabia’s $500 Billion City
Project NEOM is designed to inspire an alternate lifestyle responding to some critical global challenges facing humanity. The smart city will highlight humanity’s relationship with nature by preserving 95% of the natural environment that surrounds it. All energy in NEOM will be completely renewable generated from wind, solar, and hydrogen which will ensure a zero-emission and carbon-positive ecosystem. People involved with the project are saying that NEOM will be a regional powerhouse in water production and storage which will be anchored on water desalination. Its water infrastructure, connected through advanced technology, will ensure minimal water loss. This will put NEOM at the forefront of water technology.
The plans to build such a city were first announced at the Future Investment Initiative conference by Saudi Crown Prince Mohammed bin Salman. The conference was held in Riyadh, Saudi Arabia, on October 24, 2017. He added that the upcoming city would operate independently from the existing governmental framework and enforce its own tax, labor laws, and an autonomous judicial system.
The estimated cost of the entire project is USD 500 billion, which is largely being bankrolled by the Public Investment Fund which invests on behalf of the government of Saudi Arabia. NEOM is arguably the world’s largest and most controversial architectural project.
NEOM’s Planned Regions
As per the developer, NEOM consists of 10 regions. The details of 4 such regions have been announced.
The Line
NEOM The Line, Screenshot from the NEOM’s Website
Suggestive of the name, The Line is a linear city spanning 170 km in length and 200 meters in width. The first plans for the famed city were unveiled in January 2021 and were further modified in July 2022. The original plan included multiple buildings on a linear plan. The modified plan scrapped the original idea and combined the buildings into one continuous structure with a glass mirror exterior, covering it entirely. The city will be free of cars and large enough to house 9 million residents living within walkable communities. All basic services will be available to all within a 5-minute walking distance.
Oxagon
NEOM Oxagon, Screenshot from the NEOM’s Website
Saudi Arabia’s Ministry of Industry and Mineral Resources, the Saudi Authority for Industrial Cities and Technology Zones, and NEOM signed a Memorandum of Understanding in December 2022, that facilitates collaboration and legislation in support of NEOM’s Future Factories Program. Initially named the NEOM Industrial City, Oxagon is a floating Industrial complex, so named due to its shape as an octagon. It is roughly spread over 250 sq. km and will focus on modern manufacturing, industrial research, and development centered on expanding the Duba port. The complex will also include a desalination plant, a hydrogen plant, and an oceanographic research center. It is the crown prince’s hope that Oxagon will become a new focal point for global trade flows and it will service shipping routes passing through the Red Sea.
Trojena
NEOM Trojena, Screenshot from the NEOM’s Website
This will be the first major outdoor skiing destination in the Arabian Peninsula and it was launched on 3rd March 2022, by Saudi Crown Prince Mohammad bin Salman. Located approximately 50 km from the Gulf of Aqaba coast in the Sarwat Mountains, the site’s elevation ranges between 1500 meters to 2600 meters and the climate is considerably cooler than the rest of the NEOM’s territory.
Sindalah
NEOM – Sindalah, Screenshot from the NEOM’s Website
The plans for Sindalah were announced in December 2022, which will be a large luxury resort complex off the city coast. It will encompass an 86-berth marina and three luxury hotels that will be able to accommodate approximately 2400 visitors daily.
Apart from these, the announcement was also made for NEOM Bay Airport in June 2019 that would begin receiving commercial flights after the completion of the first phase of construction. The airport is registered by the International Air Transport Association (IATA). NEOM also has plans to convert almost 6500 hectares of land into agricultural fields and to rely heavily on genetically engineered crops.
Controversies Surrounding NEOM
The NEOM Project is surrounded by controversies with three main concerns – sustainability, liveability, and human rights. Although human rights have been a cause of concern in Saudi Arabia for some time, the direct concern affecting NEOM is related to the evictions that are taking place due to the construction. Roughly 20,000 tribe members of the Huwaitat tribe that is historically indigenous to the area will be relocated to accommodate the planned development.
The Line region, in particular, has been criticized for the estimated production of embodied carbon dioxide in excess of 1.8 billion tonnes. This number has been given by Philip Oldfield, head of the built environment school at the University of New South Wales. According to Oldfield any environmental benefits in the future will be overwhelmed by the carbon dioxide production due to construction. Experts are also concerned about the mirrored façade and the impact it will have on animal and birdlife.
Saudi Arabia’s Controversial Mega-City Project: The Line
The Crown Prince, Mohammed bin Salman commented on the liveability of The Line. He said – “It will challenge the traditional, flat, horizontal cities and create a model for nature preservation and enhanced human liveability.”
Experts say that the liveability claims would rest on how the city is maintained.
Conclusion
As ambitious as the project sounds, there are many firms and individuals who are now involved in making this project a reality. In fact, in March 2021, NEOM signed a four-year global sponsorship agreement with the Asian Football Confederation, and in 2022 NEOM hosted Extreme E’s 2022 Desert X-Prix in Sardinia. In October of the same year, Trojena was announced as the future host of the 2029 Asian Winter Games. The world, as one, is looking forward to witnessing the reality of the project called NEOM.
FAQs
What is NEOM?
NEOM is a planned cross-border city in northwestern Saudi Arabia, which aims to create a new model for sustainable living and economic development as part of Saudi Arabia’s Vision 2030.
What is the main goal of NEOM project?
NEOM aims to reduce Saudi Arabia’s reliance on oil and diversify its economy. Its focus is to attract international investment and become a hub for innovation and technology.
Who is funding the NEOM project?
The NEOM project is funded by the Saudi Arabian government, through its Public Investment Fund (PIF). The PIF has committed to investing more than $500 billion over the next decade to support the development of NEOM and other projects aimed at diversifying the Saudi economy.
What is the timeline for NEOM’s completion?
The initial phase of the project is expected to be completed by 2025, with some areas of the city becoming operational as early as 2023. The full development of Neom is expected to take several decades.
What are some of the futuristic technologies that NEOM plans to implement?
NEOM plans to implement several futuristic technologies, including:
These technologies are intended to make Neom a model for sustainable and innovative living, while also attracting investment and talent from around the world.
