Saudi Arabia has reportedly paused new agreements with several Western consulting firms and slowed certain payments as the kingdom grapples with mounting financial pressure linked to the wider West Asia crisis and the fallout from the United States’ conflict with Iran.
According to a report by the Financial Times, the decision emerged in the aftermath of the nearly three month long US Israeli military campaign against Iran, which disrupted maritime trade through the Strait of Hormuz and triggered fresh volatility in global energy markets.
The conflict pushed oil prices higher, strained supply chains and intensified economic uncertainty across the Gulf region.
Riyadh tightens spending amid regional tensions
Executives from multiple consulting firms told the publication that Saudi authorities informally halted fresh work orders and postponed some invoice clearances after the conflict escalated.
The move is widely being viewed as part of Riyadh’s broader attempt to tighten expenditure as concerns grow over oil revenues, rising defence costs and the economic impact of regional instability.
The kingdom is also reportedly reassessing spending priorities under Crown Prince Mohammed bin Salman’s ambitious Vision 2030 programme, which aims to diversify the economy beyond oil and position Saudi Arabia as a global investment and business hub.
Major global consulting firms affected
The reported slowdown has created uncertainty for several multinational advisory firms operating heavily in the region, including McKinsey & Company, Boston Consulting Group and the Big Four professional services firms.
Over the past decade, Saudi Arabia has become one of the region’s largest markets for global consultants due to the massive scale of infrastructure, development and economic transformation projects launched under Vision 2030.
Executives cited in the report said there had been no formal public announcement, but companies were operating with the understanding that payments and new approvals could remain delayed until at least the end of the second quarter.
One executive reportedly claimed firms were being informally told that invoice clearances may not happen before July.
Saudi Arabia rejects claims of delayed payments
Saudi Arabia’s finance ministry pushed back against suggestions of widespread payment delays.
The ministry stated that the government continues to ensure investments and consultancy services align with the strategic goals of Vision 2030 and provide measurable value.
It also disputed claims of stalled invoices, reportedly saying that 99.5 percent of payments in 2026 had been processed within agreed contractual timelines.
Hormuz crisis reshapes Gulf priorities
Although Saudi Arabia managed to partially cushion the impact of the conflict by rerouting much of its crude exports through Red Sea ports, the regional crisis has exposed vulnerabilities tied to Gulf shipping routes.
Iran’s actions around the Strait of Hormuz, combined with fears of renewed escalation, have forced Gulf nations to reconsider infrastructure, security and defence spending priorities.
Executives told the publication the war had strengthened Saudi Arabia’s resolve to curb unnecessary expenditure while investing more aggressively in defence systems and alternative export infrastructure.
Fragile ceasefire keeps region on edge
Despite a ceasefire, tensions between Iran and the United States continue to remain unresolved, fuelling fears of another round of direct conflict in West Asia.
Iran effectively restricted movement through the Strait of Hormuz following US and Israeli strikes earlier this year, while the United States responded with increased naval pressure along Iran’s coastline.
Relations between Iran and Gulf nations including Saudi Arabia and the United Arab Emirates have also sharply deteriorated since the conflict began.
Tehran accused Gulf countries of assisting US military operations, allegations that regional governments have repeatedly denied, insisting their territories and airspace were not used for attacks on Iran.
