Grant Thornton is one of the world’s leading independent assurance, tax and advisory firms. The firm operates in 149 markets, including the UAE, and has 73,000 people on staff.
The firm is known for its focus on mid-market companies but also works with large multinational corporations, government entities, and non-profit organisations. It places a strong emphasis on innovation, digital transformation, and sustainability, tailoring its services to meet the needs of evolving markets, particularly in regions like the Middle East and Asia.
In the UAE, Grant Thornton, under the leadership of CEO Hisham Farouk, supports both private and public sectors in navigating the dynamic economic landscape. Here, Farouk discusses Grant Thornton’s strategies for bolstering cross-border business with China, the firm’s growth trajectory, and the importance of sustainable finance, ESG, and digital transformation in shaping the future of the UAE.
What are the highlights of Grant Thornton’s growth trajectory in the UAE?
Grant Thornton has been an active partner and witness to the UAE’s progressive growth and economic diversification for over 55 years. In reflection of the UAE’s growth, the last few years of impressive advancement and expansion within our firm have placed us firmly in a ‘hyper’ growth period. Evolving market demand has accelerated our digital transformation, allowing us to offer expanded and more complex solutions to our clients.
Our client profile has also progressed over the years locally, regionally, and internationally, and being in the Middle East gives us a strategic advantage to cater to companies in various time zones. More importantly, our reputation as a premier, experienced professional services organisation helps us attract and retain expertise.
We have expanded our presence across multiple service lines by continuing to deliver complex projects for significant clients in our areas of expertise. For example, our financial services portfolio continues to grow at a strong momentum, with work ranging from financial regulators to institutions.
Additionally, we have strengthened our footing in the hospitality and family business sectors, and we remain committed to the UAE government through our continued delivery of audit and assurance, advisory, and tax engagements.
What impact has the launch of the China Desk had on facilitating further synergies between the Middle East, China and cross-border business for the firm?
Our China Desk has been doing significant work in supporting existing bilateral agreements between the UAE and China. The UAE is one of China’s largest trading partners in the Arab world, and there has been robust growth in recent years, with over 8,000 Chinese companies engaging in business with the UAE.
We enable UAE businesses to create opportunities for trade in China using our insights into Chinese business practices. Our deep understanding of the UAE market allows us to support Chinese enterprises to thrive in the UAE. Experts at our China Desk provide support across audit and assurance, advisory, and tax, connecting clients with relevant teams across Grant Thornton’s global network and local offices in the Middle East region.
As we witness this surge in investment opportunities, our team has been navigating the intricate paths of cross-border business, ensuring our clients’ expansion goals succeed in dynamic business environments.
What are your views on the professional services industry’s main growth projections, challenges, and opportunities?
Given the vast economic diversification plans in the GCC, we are seeing various public infrastructure projects, digital transformation initiatives, and environmentally sound developments come into force. Such large projects need guidance to bring them to reality while considering sustainability, profitability, innovation, and transformation.
The sector is experiencing an upward shift due to the demand for investment advice. Catering to such large projects requires talent and local industry expertise, which I believe is a challenge felt across the region. There are also challenges related to inflation, global economic uncertainty, supply chain disruptions, and climate change.
That said, I believe the GCC professional services market is steady for now and set to expand over the next few years in double digits, with increased hiring likely—contrasting global industry trends. More importantly, professional services organisations that listen to their clients and cater to their needs using differentiated, futuristic thinking will succeed.
How is Grant Thornton UAE driving the trend of growth in sustainable finance in the UAE?
With the UAE’s Net Zero commitments in mind, many firms are increasingly aware of the advantages of embedding sustainable finance initiatives within their corporate ESG strategies. During COP28, the announcement of the mobilisation of Dhs1tn in sustainable finance by 2030 was significant for the industry.
Grant Thornton has been involved in sustainability and ESG-related engagements for several years and is committed to advising clients on ESG strategy, emissions tracking, ESG reporting, and regulatory compliance.
In line with the UAE’s Sustainable Finance Framework from 2021, we have focused on helping the financial services sector embed sustainability practices into strategy, policies, procedures, and decision-making at the highest levels of organisations.
As part of our strategic recommendations, we have also highlighted the relevance of green investments and green financial products, which may include favourable terms for small businesses and lower-income individuals and families.
How can companies enhance their long-term value by recognising the importance of ESG factors, aligning with national sustainability targets, and adopting robust reporting mechanisms?
While recognising that various ESG standards can be adopted, it is crucial to identify the most relevant regional frameworks and targets for an organisation. In the UAE, for instance, companies can align with the UAE Green Agenda for 2030, which has different areas of focus, including innovation, infrastructure, workforce, and renewable energy.
For comprehensive reporting, it is vital to assign ownership to relevant departments and equip them with the right tools to collect, store, and monitor data. This ensures seamless ESG reporting, which is mandatory for organisations listed on the Abu Dhabi Stock Exchange and Securities and Commodities Authority in the UAE.
What are some of the biggest opportunities and challenges you foresee for the UAE economy in the next five years?
The UAE has garnered global attention with confidence and investor interest, thanks to its market-first practices, an ‘always open’ business attitude, and measures to protect its vibrant business community. The fintech sector, for instance, enjoys immense government support, which has encouraged startups worldwide to set up here, with more unicorns expected to thrive.
However, the UAE must contend with competition from other GCC countries also experiencing growth and diversification. Being a strong and stable economy, the UAE continuously assesses emerging risks and adapts to international best practices.