KPMG’s two largest member firms in the Middle East – Saudi Levant and Lower Gulf – have voted to integrate their businesses to create a regional powerhouse of over 5,000 employees across six countries.
The integration will result in the establishment of a new limited liability partnership and, once implemented and necessary regulatory approvals obtained, will forge a collective KPMG business operating across Saudi Arabia, Jordan, Lebanon, Iraq, the United Arab Emirates and Oman.
The business will be led by Abdullah Al Fozan, appointed as Senior Partner and CEO, and Emilio Pera, appointed as Deputy Senior Partner and Deputy CEO. They currently lead the KPMG Saudi Levant and KPMG Lower Gulf businesses respectively.
Commenting on the milestone, Al Fozan said: “An integrated business would enable us to be even stronger and better positioned to provide value for our clients and communities. With a wider geographic coverage, we would be able to expand our service and sector expertise to complement an already deep local market understanding.”
Pera added: “An integrated business would significantly benefit our clients, our people, and our partnership by enabling faster growth and sustainable investments in new services, while expanding our knowledge and access to regional experts, enhancing our agility and leveraging KPMG’s multidisciplinary expertise.”
The move has been ratified by KPMG’s global executive board, which has been stimulating the clustering of member firms across the network as part of its ‘Global Collective Strategy’. Earlier this year for instance, KPMG UK and KPMG Switzerland merged to form a $4.4 billion limited liability partnership.
“Greater integration brings a number of benefits to clients, people and the communities in which KPMG operates. Importantly, it underpins KPMG’s commitment to greater consistency and quality albeit continuing to service clients through separate legal entities that have operated in the respective markets,” stated KPMG in a statement.
The move brings KPMG’s governance in the Middle East a step closer to that of its main rivals. Putting aside the complex legal structures Big Four firms erect for tax and legal reasons, Deloitte and PwC for example operate with a ‘one firm’ approach across the Middle East. EY meanwhile has a MENA-wide governance model.
Across the Middle East region, KPMG has around 7,000 staff. Member firms outside of the Saudi Levant and Lower Gulf tandem include those in Egypt (about 1,000 staff), Bahrain (400 employees), Qatar (350 people), and Kuwait (200 staff).
Globally, KPMG has more than 236,000 partners and employees in 145 countries. The network was formed in 1987 following a merger, with its brand derived from the initials of four founding partners: Klynveld (K), Peat (P), Marwick (M) and Goerdeler (G).
Sourced from Consultancy -me.com