Why consultancy & professional services is the Middle East's hottest M&A sector
November 2025
120%
increase in consultancy & professional services M&A deals
12%
growth forecast for the GCC consultancy & professional services market in 2025
Introduction
The business services sector has always been a strong area for M&A in the region. Lumina’s own 2025 survey of dealmakers (the Lumina Cross-Border M&A Survey) highlighted business services as the top sector for a third year in a row.
But the headline only tells part of the story. Beneath it, the region has seen a surge in consulting and professional services deals, with S&P CapIQ¹ data showing deal activity in this subsector up more than 120% vs pre-pandemic levels.
For those who follow the European and US markets, M&A activity in this space will not be a new phenomenon. However, what is new is the upswing of international interest in this sector in the Middle East.
120% increase in professional services deals since pre-pandemic
Notable recent consultancy & professional services deals in the Middle East
The sector has witnessed a surge in international interest, particularly from those global corporates backed by private equity
Wherever you go, I will follow
The draw of the Middle East
Middle East mega projects have always drawn the interest of international consultants. After all, “trillions of dollars to be invested by…” is hard to ignore for any Board.
The struggle faced
However, historically, international firms struggled with periods of rapid growth, followed by relative easing. The “Middle East” economic cycle as those familiar with the region would recognise. Trying to plan asset allocation and hiring with cycles heavily linked to macro events and oil prices was seen by many businesses as all just too difficult.
Growth was easier to achieve in other geographies, with which senior management was more comfortable.
Now, the conversations are different.
77.3%
of the UAE GDP is derived from non-oil
5.3%
growth in the non-oil UAE GDP
Taking the UAE as an example, the non-oil economy is responsible for 77.3%² of GDP and is growing at 5.3%. Compare this to the unpredictable trade environment in the US or the Eurozone, which is hampered by slow, inflation-dragged growth of c.1%³. International corporates need access to the region to deliver stakeholder returns. And they’re asking their advisers: “What coverage do you have in the Middle East?”
In a competitive market, outsourcing it to a loosely connected “best friend” relationship no longer works. An experienced, on the ground team, with a history of delivering complex solutions alongside regional clientele is crucial.
For many the quickest fix for this has become M&A.
Great fundamentals
So why is the region at the top of this shopping list?
Strong tailwinds
Even without the influx of international corporates, the regional consulting and professional services market is experiencing strong tailwinds. The phased introduction of new regulations, aimed at providing confidence to international investors, digitising the economy and supporting the privatisation of the economy, is driving implementation projects and ongoing reporting requirements.
Regulation driven reporting work is particularly valuable as it creates recurring business, improves revenue visibility and offers downside protection against slowdowns.
As a result, the GCC consultancy and professional services market is forecast to grow at 12%⁴, with the top performers exceeding that by some way, with many targeting 20%+ per annum.
Compare this to the unpredictable policy of the US and the sluggish growth in Europe. These fundamentals are music to the ears of international boards or private equity investors looking to 2.0x – 3.0x their investment in five years.
It doesn’t stop there - cue value creation
In a world of M&A and private equity, the sum of the parts is the downside scenario. Strong regional market tailwinds will deliver impressive growth for any consolidator into the Middle East, but supercharged returns will come from scenarios when 1+1 equals three, four or even five – i.e. value creation.
For consultancy and professional services businesses, the value creation strategy typically focuses on three areas. The Middle East market offers all of them.
(1) The revenue optimisation play
In a globally connected market, advisers structured along fragmented international lines run the risk of leaving client spend on the table. Bit part international delivery, at best, reduces margin through outsourcing parts of the project, at worst, it never wins the client pitch at all.
The Middle East is where the world’s largest corporates are heading, and they expect their advisers to have strong capabilities on the ground. Only a truly global go-to-market approach wins and maintains the type of large, international client with a big advisory budget, that these firms dream of.
Consolidators and financial investors also see an opportunity to corporatise targets’ structures. It may shock you but accountants, lawyers, or consultants, don’t always translate into good CEOs, Chief Revenue Officers or Operations Directors. Bringing in seasoned corporate leaders can unlock value through improved go-to-market strategy, pricing optimisation, and improved international collaboration.
(2) The talent (+ cost) optimisation play
Talent is the lifeblood of consulting and professional services firms. Attractive to a highly skilled, globally mobile workforce, the Middle East has emerged as a hub for some of the world’s best talent. This provides international consolidators the opportunity to leverage a deep talent pool, with experience across global markets, whilst also solving the age-old problem of how to retain their best talent.
Also capable of offering a halfway step to meaningful 24-hour client coverage, a regional presence can provide global efficiency and utilisation gains, ensuring control of the single biggest cost of these firms – people.
But people are only part of the equation. Back-office consolidation remains the classic low-hanging fruit of value creation: centralising administration, procurement, and finance functions delivers immediate margin uplift for regional targets.
Finally, there is the rise of the “em dash” — there is a tangible sense that AI will make people businesses more efficient, reducing the headcount required for client delivery. Consolidators and private equity sense an opportunity; they can deploy capital into new tech and AI where smaller and mid-sized firms are falling behind. This unlocks value creation that can be delivered across the medium and long term, driving value creation into the future.
(3) The arbitrage play
Many independent consultancy and professional services firms were born from entrepreneurial individuals leaving large organisations to build more agile, niche businesses. This has created a long tail of smaller and mid-sized businesses, with overlapping client bases and strong growth trajectories.
This presents two clear opportunities for consolidators:
(1) Efficient capital deployment: Corporate Finance 101 tells us to deploy capital where growth is highest. Investing in high-growth regional businesses drives overall profitability growth, delivering outsized value to any platform.
(2) Multiple arbitrage: smaller, less diversified bolt-on ready firms create an opportunity to buy at a relatively lower multiple of profits, compared to that of a much larger, multi-service group. Whilst never relied upon to deliver stakeholder returns, it offers a very tangible value accretion upside for those making acquisitions.
The regional market is littered with high-quality, high-growth firms, creating prime conditions for value accretion and multiple arbitrage – the perfect hunting ground for any M&A-led growth strategy.
The year ahead
At Lumina, we see this as a trend set to continue.
Private equity money continues to target consulting and professional services firms. As these entities enter their second, sometimes third era of private equity ownership, M&A and access to new markets will continue to be a focus to drive stakeholder returns.
With the Eurozone stagnating and US uncertainty dragging on sentiment across its own and Asian markets, the Middle East’s pro-growth environment stands out. Its ever-more reliable and structural growth will continue to keep it front of mind for those chasing growth in this industry.
Next up
In the coming weeks, look out for part two of our series, as we discuss the key value drivers for consulting and professional services deals.
About the author
James Jarvis
Associate Partner (Dubai)
James brings over a decade of international experience in M&A and corporate finance advisory across the Middle East and the UK.
James has advised on a range of M&A and capital raising transactions across several consultancy and professional services subsectors, including accountancy, business management consulting, digital transformation and IT services firms.
1. CAP IQ M&A market data focused on Middle East M&A transactions where the target was a Middle East headquartered entity as of 12 November 2025
2. The contribution of non-oil activities to real GDP reached a record 77.3 per cent in the first quarter of 2025. Source: UAE Ministry of Economy and Tourism: https://www.moet.gov.ae/en/-/uae-economy-records-5.3-growth-in-non-oil-activities#:~:text=His%20Excellency%20added:%20%E2%80%9CThanks%20to,driven%20by%20technology%20and%20innovation.
3. Eurozone Q1 2025 growth vs Q1 2024, source: https://ec.europa.eu/eurostat/web/products-euro-indicators/w/2-05092025-ap#:~:text=up%20by%200.1%25-,GDP%20growth%20in%20the%20euro%20area%20and%20the%20EU,and%20Italy%20(%2D0.1%25).
4. Forecast GCC consulting market growth in 2025. Source: Consultancy Middle East: https://www.consultancy-me.com/news/11464/consulting-market-of-gcc-to-grow-by-12-to-over-8-billion-in-2025