Benchmarking key strategy consulting firms footprint in Middle East. 2 nd Edition

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1 Benchmarking key strategy consulting firms footprint in Middle East 2 nd Edition 0

2 Objective for this document The Middle East is one of the hubs of the consulting markets in the world and it is getting a lot of attention from global consulting firms. In fact despite the drop in oil prices the consulting markets has not slowed down. Up till now, McKinsey has been at the forefront of strategy consulting in the ME market and is thought to remain today the leader on the market, having both the largest number of employees and the widest geographical footprint. BCG and Strategy& (formerly Booz & Company) are the closest competitors and BCG in particular is currently investing significantly to develop its footprint in the region. Opening and developing new offices Investing in local capabilities, among others research Infomineo being a specialist of business research, we thought we would be able to provide you with a few interesting insights using professional social networks such as LinkedIn. 1

3 Context and Scope In order to map the main consulting firms footprint in the Middle East, a benchmark of the eight largest management consulting firms has been conducted: McKinsey & Company Bain & Company Boston Consulting Group A.T. Kearney Roland Berger Strategy Consultants Strategy& (formerly Booz & Company) Oliver Wyman Booz Allen Hamilton New for Our research covered all types of functions and roles including: Partners Project Managers Consultants Research, Knowledge & Analytics Support / Internal Services Other (advisors, etc.) Our research was focused on all Middle East countries with activity by our targeted management consulting firms. This resulted in a zoom on: Bahrain, Egypt, Saudi Arabia, Kuwait, Lebanon (new for ), Qatar and UAE Note: compared to the last year analysis, a new company (Booz AH) and country (Lebanon) have been added to the scope 2

4 Methodology Note This analysis was conducted using only publicly available information, from sources like company websites, the press or Linkedin The data contains limitations due to methodological constraints (For example, consultants figures are derived from LinkedIn whereas we know that not all consultants have active profiles on LinkedIn), but we chose not to manually correct the data to have a consistent approach between all firms. Resources at outsourcing partners and fly-ins are not accounted for in this analysis. Some analyses are based on judgment calls, like assigning employees to groups (like consultants vs Research, Knowledge & Analysis professionals) or assessing the nationality of employees based on their names and their education history. As for any judgment, there is a risk of error on a case by case approach but we are quite confident that the overall picture that is given in this analysis is consistent. Note: given the fact that a new company (Booz AH) and a new country (Lebanon) have been added to the scope, in order to mantain consistency, all data referring to these new entry have been excluded from the growth analysis. 3

5 Key Findings 4

6 Key Findings 1/2 - Countries UAE is by far the biggest hub, but Saudi Arabia leads the way with the highest (200%) increase in number of employees for The absolute number of employees reached 1942 in Middle East, showing an overall 38% growth*. UAE is the hottest hub, with 1494 employees, Lebanon is second with 233. UAE showed the highest growth in absolute terms with an increase of 356 employees from (+34%)*. A.T. Kearney and Oliver Wyman increased significantly their number employees in UAE from to (+60%), but the higher growth in absolute terms has been showed by McKinsey with an increase of 116 employees in the country (+38%). Saudi Arabia absolute number of employees grew up to 116 and it is to be said that most of the consultants based in UAE or Lebanon spend a significant share of their time in this country. All the countries showed positive growth rate with the exception of Kuwait, where only Booz AH maintained employees (5). New offices have opened in Abu Dhabi and Riyadh activities in Lebanon and Kuwait are mostly unofficial* In, Bain & Company has officially opened up in Abu Dhabi, while BCG opened in Saudi Arabia (where it already had some activities, but no established office). AT Kearney, Bain, McKinsey and BCG have activities but no official office in Lebanon. Other unofficial activities are developed in Saudi Arabia (Bain), Qatar (BCG), Kuwait (Booz AH and Strategy &) and Bahrain (Oliver Wyman). Strategy& has dismissed its activites in Kuwait in. UAE is by far the hottest hub in Middle East for six out of eight firms, with more than 74% of all ME staff of those firms Except for Booz Allen Hamilton (40%) and Strategy& (54%), the other six firms have allocated more than 74% of their human resources in this country For Booz AH and Strategy& Lebanon is the second most important hub, with 29% and 41% of their staff allocated there. Overall, UAE hosts 77% of all the firms staff in Middle East. *Not including growth data from Booz Allen Hamilton. Sources: Infomineo analysis 5

7 Key Findings 2/2 - Companies 4 McKinsey is leading the way in the Middle East market: in terms of total number of employees, number of consulting staff, and geographical footprint McKinsey stands out from the rest of the consulting firms with actual presence in 6 Middle-eastern countries (similar to Booz Allen Hamilton) and a total number of 476 employees, of which 363 are consultants, project managers and partners. Despite a 9% decrease, Strategy& comes second in terms of number of employees (310 spread between UAE, Saudi Arabia, Egypt and Lebanon, where they have the stronger presence among competitors). BCG comes third and showed the second biggest presence in UAE (295 employees, of which 264 in UAE, where only McKinsey is bigger with 424). Roland Berger has by far the lowest number of employees, covering 3 countries with only 43 people. Six out of eight firms showed in a growth in number of employees in Middle-East, compared to. 5 McK showed the largest increase in absolute number of employees within the region, while ATK has the highest % growth McKinsey increased their employees by 140, followed by A.T. Kearney with 104 and BCG with 103 respectively within the region ATK showed the highest growth at 80%, followed by Olivier Wyman and BCG showing growth of 68% and 56% Two out of eight firms showed a decrease in staff in the region: Strategy& and Roland Berger decreased their resources respectively by 9% and 8% 6 McKinsey has the largest resources dedicated to Research, Knowledge & Analysis with a staff of 18 people and the ratio of 1 R, K&A professional to 20 consulting staff employees* McKinsey increased significantly its R, K&A staff in Saudi Arabia (+8). A.T. Kearney has since also invested in Research, Knowledge & Analysis and has 3 dedicated staff located in Saudi Arabia, 1 in Lebanon and 1 in UAE. Booz Allen Hamilton & Strategy& have the second largest R, K&A resources in Middle East, with 8 professionals each (respectively 1 professional to 23 and 26 consulting staff employees). BCG and Roland Berger have no professionals dedicated to the Research, Knowledge & Analysis in Middle East. It is worth noting that for firms who have local teams, or the ones who don t, Research, Knowledge and Analysis needs are supported from research teams out of Europe, Middle East or with Infomineo as a local provider. Sources: Infomineo analysis 6

8 Detailed analysis 7

9 Key Findings: Zoom on McKinsey in Middle East McKinsey has a long history of presence in Middle East: operating in the Region since 1957, supporting both Governments and private sector in banking, industrials, telecoms, energy, real estate, construction, health care and diversified conglomerates. McKinsey bets on emerging Middle East markets: currently, it has 5 registered offices and also operations in Lebanon. As for the total number of employees, McKinsey has a current footprint in the region approximately 1.5 times bigger than BCG or Strategy&, 2 times bigger than AT Kearney, Booz AH or Oliver Wyman, 3 times bigger than Bain, 11 times bigger than Roland Berger. As for consulting staff, McKinsey has a current footprint in the region 1.5 times bigger than BCG, approximately 2 times bigger than Strategy &, AT Kearney and Booz AH. McKinsey shares some figures about its presence in Middle East region: 300+ consultants across ME locations 750+ projects completed since languages spoken in the Middle East offices A recent meeting (June ) with the Minister of State for Youth Affairs of Kuwait reveils a possible interest for McKinsey to open a further branch in Kuwait. The opening would be justified with the project of privatization of the sport industry, currently being considered by the Kuwait Governement. Sources: McKinsey website, press search, LinkedIn, Infomineo analysis 8

10 An overview of total employees & consultants staff across the eight key consulting firms in the Middle East Total Staff A.T. Kearney Bain & Company Booz Allen Hamilton McKinsey & Company Oliver Wyman Roland Berger Strategy& (formerly Booz & Company) Boston Consulting Group Grand Total Growth rate 15/16 * 80% 19% Na 42% 68% -8% -9% 56% 38% Absolute (of which # Lebanon) 247 (13) 139 (1) 254 (74) 476 (3) 178 (0) 43 (6) 310 (128) 295 (8) (233) Share of absolute ** 13% 7% 13% 25% 9% 2% 16% 15% 100% Consulting Staff (partners+pms+consultants) A.T. Kearney Bain & Company Booz Allen Hamilton McKinsey & Company Oliver Wyman Roland Berger Strategy& (formerly Booz & Company) Boston Consulting Group Grand Total Growth rate 15/16 * 56% 20% na 40% 76% -16% -9% 63% 69% Consulting staff (of which # Lebanon) 180 (10) 111 (1) 184 (58) 363 (3) 132 (0) 33 (6) 210 (76) 241 (7) 1454 (161) Share of absolute ** 12% 8% 13% 25% 9% 2% 14% 17% 100% * This indicator represents the overall growth rate of staff / consulting staff in the Middle East. Lebanon and Booz AH are excluded from the analysis for lack of data. ** This indicator represent the share of the firm given the overall number of employees in the staff / consulting staff. It does include Lebanon and Booz AH. Sources: LinkedIn, Infomineo analysis 9

11 An overview of total employees across functions in the six key consulting firms in Middle East in 155 3% 10% 10% 249 1% 4% 4% 6% 10% % 7% 9% 398 3% 7% 10% % 7% 9% 7% 7% 11% 11% 12% 10% 16% 12% 18% 15% 13% 12% 13% 21% 17% 15% 29% 18% 14% 18% 20% 42% 40% 36% 28% 20% 22% Partners Project Managers Consultants Support/ Internal Services Other Research, Knowledge & Analytics McKinsey Bain BCG ATK Strategy& Roland Berger Booz AH Oliver Wyman Sources: LinkedIn 10

12 Saudi Arabia shows the highest relative growth (29 to 87 people), but UAE continues to attract more investments in absolute terms (+356 people) +38% % 1% 0% 1% 2% 1% 3% 1% 6% 0% % 91% Bahrain Egypt Kuwait Qatar Saudi Arabia Total employees UAE UAE Egypt Kuwait Qatar Saudi Arabia 4 Bahrain Total employees * data don t include Lebanon / Booz AH Sources: LinkedIn, Infomineo analysis 11

13 Today UAE is the hottest hub in Middle East, representing 77% of all staff, Lebanon is second with 12% % 3% 1% 6% 0% % % Those columns show the situation for, including now Lebanon and Booz AH. The new picture confirms the importance of UAE as the main locations for the consulting firms in the Middle East. However, Lebanon and Saudi Arabia are still considered very attractive. Bahrain Egypt Kuwait Qatar Saudi Arabia UAE Lebanon Sources: LinkedIn, Infomineo analysis * data include Lebanon / Booz AH 12

14 An overview of total employees across geographic locations in the eight key consulting firms in Middle East % % 0% 1% 2% 6% 8% 3% 10% 3% 7% 6% 6% 13% 9% 20% 17% 11% 20% 20% 32% 11% 19% 20% 30% 14% 25% 18% 50% 59% 55% 35% 26% 28% Qatar Egypt Saudi Arabia Kuwait Bahrain Lebanon UAE ATK Bain & Company Booz AH McKinsey Oliver Wyman Roland Berger Strategy& BCG Sources: LinkedIn, Infomineo analysis 13

15 Ratio: Consulting, PM & Partners to R&K * Dedicated R&K functions* McKinsey, Strategy& and Booz AH lead the way with the largest dedicated Middle East research functions +29% 18 It is worth noting that Research, Knowledge and Analysis needs in Middle East are currently partially or totally covered by the European offices of the respective firms % % % ATK ATK Bain & Co. Bain & Co. Booz AH Booz AH McKinsey 18 McKinsey Oliver Wyman Oliver Wyman Roland Berger Roland Berger Strategy& Strategy& BGC BGC No staff in R&K No staff in R&K No staff in R&K No staff in R&K No staff in R&K ATK ATK Bain & Co. Bain & Co. Booz AH Booz AH McKinsey McKinsey Oliver Wyman Oliver Wyman Roland Berger Roland Berger Strategy& Strategy& BGC BGC * data don t include Lebanon Sources: LinkedIn, Infomineo analysis 14

16 Mapping Middle East offices Middle East Offices A.T. Kearney Bain & Co. Booz AH McKinsey & Co. Oliver Wyman Roland Berger Strategy& BCG Bahrain Egypt Kuwait Lebanon Qatar Saudi Arabia UAE Abu Dhabi UAE Dubai Official registered office (on respective websites) Locations with activity but without operating offices New office registered in Sources: Companies respective websites, Press Search, LinkedIn 15

17 Egypt Mapping the consultancy market in Middle East Market growth Saudi Arabia Kuwait Bahrain UAE Qatar +4% % % % % % ATK Bain & Co. McKinsey Oliver Wyman Roland Berger Strategy& BCG * data don t include Lebanon / Booz AH Sources: LinkedIn 16

18 Egypt Mapping the consultancy market in Middle East Market share Lebanon Saudi Arabia Kuwait Bahrain UAE Qatar (6%) (0%) 6 (3%) 74 (32%) 3 (1%) 5 5 (100%) 10 2 (20%) 2 (20%) 1 (10%) 5 (50%) 20 6 (30%) 128 (55%) 7 (35%) 64 5 (8%) 38 (59%) 8 (3%) (19%) 1 (1%) 29 (25%) 101 (7%) (14%) 424 (28%) 132 (9%) 4 (20%) 3 (15%) 13 (20%) 8 (13%) 30 (26%) 7 7 (6%) (6%) 20 (17%) ATK Bain & Co. Booz AH Oliver Wyman Roland Berger Strategy& 170 (11%) 167 (11%) 264 (18%) 32 (2%) McKinsey BCG * data include Lebanon / Booz AH Sources: LinkedIn 17

19 A.T. Kearney: A large geographical footprint Lebanon Office: Number of Employees: 13 Number of Consultants: 6 Number of PM: 3 Number of Partners: 1 ATKearney Bahrain Office: Number of Employees: 2 Number of Consultants: 1 Doha Office: Number of Employees: 6 Number of Consultants: 3 Number of PM: 1 Managing Partner : Foreign national (based in Dubai) ATKearney Dubai & Abu Dhabi Offices: Number of Employees: 204 Number of Consultants: 97 Number of PM: 43 Number of Partners: 14 ME Director: Foreign national Riyadh Office: Number of Employees: 22 Number of Consultants: 5 Number of PM: 6 Managing Partner : Foreign national (based in Dubai) Figures do not include fly ins which could make a significant share of billings, esp. For new offices ATKearney ATKearney Registered Offices Locations with ATK activity without open offices All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: ATKearney website, Press Search, LinkedIn 18

20 Bain & Company: A focused presence in Dubai, with new activities in Egypt and Abu-Dhabi Lebanon Office: Number of Employees: 1 Number of Consultants: 1 Bain&Co. Dubai & Abu Dhabi Office: Number of Employees: 132 Number of Consultants: 66 Number of PM: 24 Number of Partners: 15 Dubai MP: Foreign national Bain&Co. Egypt Office: Number of Employees: 5 Number of Consultants: 3 Number of PM: 1 Bain&Co. Bain&Co. Saudi Arabia Office: Number of Employees: 1 Number of Consultants: 0 Bain & Co Registered Offices Locations with Bain & Co. activity without open offices Figures do not include fly ins which could make a significant share of billings, esp. For new offices All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: Bain website, Press Search, LinkedIn 19

21 Booz Allen Hamilton: good regional coverage, with strong presence in UAE and Lebanon Beirut Office: Number of Employees: 74 Number of Consultants: 52 Number of PM: 1 Number of Partners: 5 Kuwait Office: Number of Employees: 5 Number of Consultants: 1 Doha Office: Number of Employees: 7 Number of Consultants: 5 Cairo Office: Number of Employees: 38 Number of Consultants: 17 Number of PM: 3 Booz AH Dubai & Abu Dhabi Offices: Number of Employees: 101 Number of Consultants: 65 Number of PM: 5 Number of Partners: 15 Dubai MP: NA Riyadh Office: Number of Employees: 29 Number of Consultants: 20 Number of Partners: 1 Booz AH Booz AH Registered Offices Locations with Booz AH activity without open offices Figures do not include fly ins which could make a significant share of billings, esp. For new offices All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: Bain website, Press Search, LinkedIn 20

22 McKinsey & Company: A very strong footprint across the whole Middle East, with staff mostly based in UAE Beirut Office: Number of Employees: 3 Number of Consultants: 3 McKinsey Manama Office: Number of Employees: 2 Number of Consultants: 1 Doha Office: Number of Employees: 4 Number of Consultants: 2 Managing Partner: Foreign national Cairo Office: Number of Employees: 13 Number of Consultants: 5 Managing Partner : Egyptian American Dubai & Abu Dhabi Offices: Number of Employees: 424 Number of Consultants: 193 Number of PM: 104 Number of Partners: 43 Dubai MP: Foreign national Abu Dhabi MP: Foreign national McKinsey Riyadh Office: Number of Employees: 30 Number of Consultants: 10 Number of PM: 1 Number of Partners: 1 McKinsey & Co Registered Offices Locations with McKinsey activity without open offices Figures do not include fly ins which could make a significant share of billings, esp. For new offices All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: McKinsey website, Press Search, LinkedIn 21

23 Oliver Wyman: currently focused mostly on UAE with a new Barhain representation Bahrain Office: Number of Employees: 1 Number of Consultants: 0 Oliver Wyman Dubai & Abu Dhabi Offices: Number of Employees: 170 Number of Consultants: 97 Number of PM: 14 Number of Partners: 19 ME Director: Foreign national Riyadh Office: Number of Employees: 7 Number of Consultants: 1 Number of PM: 1 Managing Partner : Foreign national Figures do not include fly ins which could make a significant share of billings, esp. For new offices Oliver Wyman Oliver Wyman Registered Offices Locations with Olliver Wyman activity without open offices All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: Oliver Wyman website, Press Search, LinkedIn 22

24 Roland Berger Strategy Consultants: A small presence in the region Beirut Office: Number of Employees: 6 Number of Consultants: 6 Manama Office: Number of Employees: 5 Number of Consultants: 1 Doha Office: Number of Employees: 0 Number of Consultants: 0 Managing Partner: NA Dubai Office: Number of Employees: 32 Number of Consultants: 19 Number of PM: 3 Number of Partners: 4 Midlle East MP: Foreign national Figures do not include fly ins which could make a significant share of billings, esp. For new offices Roland Berger Registered Offices Roland Berger Offices with no LinkedIn population All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: Roland Berger website, Press Search, LinkedIn 23

25 Strategy&: A strong presence across the region, but Kuwait activities have been dismissed Beirut Office: Number of Employees: 128 Number of Consultants: 63 Number of PM: 9 Number of Partners: 4 Doha Office: Number of Employees: 0 Number of Consultants: 0 Cairo Office: Number of Employees: 8 Number of Consultants: 4 Dubai & Abu Dhabi Offices: Number of Employees: 167 Number of Consultants: 108 Number of Partners: 18 Chairman ME: NA Riyadh Number of Employees: 7 Number of Consultants: 4 Managing Partner: NA Figures do not include fly ins which could make a significant share of billings, esp. For new offices Strategy& Registered Offices Strategy& offices with no LinkedIn population All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: Strategy& website, Press Search, LinkedIn 24

26 The Boston Consulting Group: A UAE focused footprint, with full time presence in Saudi Arabia and Lebanon Lebanon Office: Number of Employees: 8 Number of Consultants: 6 Number of Partners: 1 Qatar Office: Number of Employees: 3 Number of Consultants: 1 Number of Partners: 1 Managing Partner: NA Dubai & Abu Dhabi Offices: Number of Employees: 264 Number of Consultants: 171 Number of PM: 29 Number of Partners: 17 Managing Partner: Foreign national Riyadh Number of Employees: 20 Number of Consultants: 13 Number of PM: 1 Number of Partners: 1 Managing Partner: German Figures do not include fly ins which could make a significant share of billings, esp. For new offices BCG Registered Offices Locations with BCG activity without open offices All employees numbers and data presented are best estimates based on the search conducted on LinkedIn Sources: BCG website, Press Search, LinkedIn 25