Gulf Consulting Market Holds Steady as War Shifts Demand to Cyber Security

The Gulf consulting market is proving resilient in the face of regional conflict, with most companies choosing to maintain — and in many cases redirect — their digital investment priorities rather than pause projects.

According to Source Global Research's annual Gulf consulting report, only 10 per cent of companies surveyed plan to pause current projects as a result of the US-Iran conflict. Some 40 per cent will continue as planned, while nearly half — 48 per cent — are actively considering shifting work to strengthen their cyber security and digital defences.

Cyber Security Leads Growth

Cyber security is forecast to be the fastest-growing consulting service across the Gulf in 2026, projected to expand 19 per cent to $1.8 billion. The sector has become a strategic priority as Gulf states accelerate their digital economy ambitions — and as the threat landscape intensifies.

The UAE Cyber Security Council recently warned that the rise in remote working has fuelled a surge in attacks targeting unsecured home routers, putting employee and institutional data at risk. Remote work-related cyber incidents have increased by 40 per cent over recent years. As cyber security experts warn Iran shows no sign of slowing digital attacks, analysts have separately flagged heightened threat activity from Iran and affiliated groups exploiting the ongoing conflict.

"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," said Dane Albertelli, senior research analyst at Source Global Research.

Overall Market on Track for 13% Growth

Despite a dip in business confidence across the region, the Gulf consulting market is on course to grow 13 per cent annually to $11.1 billion in 2026 — up from 12 per cent growth last year. While 77 per cent of respondents expect the impact of the conflict to be long-lasting, there are no signs of panic or mass project cancellations.

"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," Albertelli said.

Hiring trends are also expected to remain unaffected. "If anything, the war has made them double down on their previous objectives — 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," he added.

UAE and Saudi Arabia Drive Regional Expansion

The UAE was the fastest-growing consulting market in the Gulf last year, rising 12.8 per cent to $3.2 billion. Saudi Arabia — the region's largest market — grew 12.6 per cent to $5.3 billion, while Qatar expanded 9.6 per cent. Kuwait, Oman and Bahrain each grew between 5 and 6.5 per cent.

For 2026, the UAE is expected to lead again with 14 per cent growth, followed by Saudi Arabia at 13 per cent and Qatar at 10 per cent. The Gulf consulting market hit $8bn last year despite a dip in growth as public spending tightened — a trend that continues to shape how firms compete for mandates across the region.

Technology and Energy Remain Core Sectors

Technology and innovation remains the largest consulting service line at $2.4 billion, alongside risk services (up 12.6 per cent last year) and strategy (up 8.8 per cent). Energy and resources — which grew 20.6 per cent last year — remains a key focus area, driven in part by the energy demands of data centre construction across the GCC.

"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," Albertelli said. "This sector know-how is what will set consulting firms apart from tech challengers in 2026."

While some gigaprojects — particularly in Saudi Arabia — are being scaled back, core infrastructure projects remain on track, sustaining consulting pipeline. The Middle East conflict is reshaping cybersecurity risk across the region, with 91% of the largest organisations having already changed their cyber strategies as a result of geopolitical volatility.

A More Demanding, Mature Market

The Gulf consulting market has matured considerably, with clients tightening budgets and showing a growing reluctance to reward generic engagements. Firms that combine in-demand technology skills with deep sector expertise will be best positioned to win work. CISOs across the GCC say the priority is readiness over panic — a posture that mirrors how consulting clients are now approaching their own digital resilience investments.

"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," Albertelli concluded.