Can Financial and Risk Advisory Increase ROI for KSA Firms

 

Internal Audit Services

As Saudi Arabia accelerates economic transformation under Vision 2030, financial performance and operational resilience have risen as core determinants of success for organisations across sectors. Today, firms in the Kingdom are increasingly seeking advisory risk consulting services to enhance decision-making, optimize resource allocation, and protect value. Integrating structured advisory risk consulting not only fortifies governance frameworks and compliance but can substantially elevate return on investment (ROI) through quantifiable risk reduction, operational enhancement, and strategic capital management especially when guided by established global expertise like Insights Advisory.

This article explores how financial and risk advisory can increase ROI for firms in the Kingdom of Saudi Arabia (KSA), supported by emerging 2025-2026 market data, measurable outcomes, and key industry trends shaping corporate decision-making.

The Strategic Imperative for Financial & Risk Advisory in KSA

In the context of Saudi Arabia’s rapid economic diversification and digital evolution, strategic investors and corporate leaders recognize that traditional management approaches are insufficient to navigate complex regulatory environments and exposure to operational threats. Advisory risk consulting solutions provide organisations with structured frameworks to identify latent risks, measure impact, and model scenarios that inform better planning and resource allocation.

Why Advisory Risk Consulting Matters

• Regulatory compliance and reporting: As regulatory expectations evolve, firms face mounting demands to align financial reporting with international standards and local governance reforms. This is reinforced by data showing that improved accounting standards have contributed to a 33 percent increase in investor confidence between 2022 and 2026, alongside rising foreign direct investment inflows beyond SAR 145 billion in 2026  indicating heightened market trust when transparent reporting is coupled with advisory expertise.

• Operational resilience and governance: Many Saudi firms particularly mid-sized and family-owned enterprises are strengthening internal controls and audit functions as part of enterprise risk management. Recent surveys show that 62 percent of companies in the Kingdom have reinforced internal controls via internal audit functions, a trend linked to greater operational stability and control effectiveness. 

• Strategic decision-making: Advisory risk consulting helps boards quantify probable losses from operational vulnerabilities and test strategic decisions using stress testing, simulation models, and real-time analytics all of which feed directly into more informed capital allocation, risk mitigation, and ROI optimization.

Quantitative Impact: Measurable ROI Through Financial & Risk Advisory

Financial and risk advisory is often justified not by theoretical value but by quantifiable improvements in organisational performance. Below are key data points and trends that demonstrate how these services are driving measurable ROI for KSA firms:

Reduced Operational Threats and Financial Losses

Investing in structured risk advisory enables firms to proactively mitigate hidden operational threats that gradually erode margins and expose capital to unnecessary risk. In 2025, the risk analytics market in Saudi Arabia reached an estimated USD 395.4 million, reflecting robust corporate investment in risk measurement and early warning systems that reduce unexpected losses and costly operational disruptions. 

Enhanced Project Success and Efficiency

Independent research underscores that enterprises engaging professional advisory services before market expansion or new project launches see up to 40 percent lower project failure rates compared to those that forego advisory input. Such improvements translate directly into higher ROI on strategic initiatives and investments.

At the same time, specialised advisory functions have been shown to help firms reach break-even on major launches 25 percent faster through accurate pricing strategy definition, competitor analysis, and market entry modelling.

Market Share and Consulting Investment Growth

The broader consulting ecosystem in the Gulf underscores the scale and impact of advisory services on economic growth and corporate competitiveness. Saudi Arabia accounted for approximately 45 percent of the GCC management consulting services market in 2025, indicating both the confidence of corporations in advisory solutions and the substantial market share captured by financial, risk, and strategic consulting functions.

Capital Market and Investment Confidence

Improvements in financial transparency and alignment with global standards, often driven by advisory expertise, correlate with deeper investor confidence. The surge in foreign direct investment to SAR 145 billion in 2026 compared to SAR 95 billion in 2023 highlights not just macroeconomic attractiveness but the influence of transparent governance and structured advisory support in fostering trust amongst global investors.

How Financial and Risk Advisory Translates to ROI for KSA Firms

To understand how advisory contributes to ROI, it is important to break down the pathways through which advisory services create value beyond the balance sheet:

1. Strategic Resource and Capital Allocation

Advisors assist firms in optimising funding structures, reducing cost of capital, and aligning investment decisions with long-term strategic goals. By integrating predictive modelling and risk appetite frameworks, financial advisory teams help organisations allocate capital to areas with the highest return potential while maintaining flexibility to respond to market shifts.

2. Operational Efficiency and Cost Control

Structured advisory engagements look holistically at operational processes to identify inefficiencies, control gaps, and process bottlenecks. This results in lower rework costs, reduced error rates, and improved service delivery all of which contribute directly to bottom-line performance improvements.

3. Enhanced Risk Visibility and Early Warning Systems

Through advanced risk measurement tools including scenario analysis, stress testing, and loss distribution modelling firms gain early insight into vulnerabilities before they materialise into costly disruptions. This proactive stance not only protects value but increases managerial confidence in pursuing expansion and innovation.

4. Governance and Compliance Safeguards

The evolving regulatory landscape in the Kingdom requires firms to adapt swiftly to new standards and reporting requirements. Strong compliance, driven by professional advisory, shields firms from penalties, reputational risks, and financial setbacks tied to governance failures.

Sector-Specific Case Studies: ROI in Action

Banking and Financial Services

Consider the banking sector, where risk-driven performance metrics have a direct bearing on profitability and investment returns. In Q2 and Q3 of 2025, Saudi banks demonstrated steady profitability improvements, with return on equity (RoE) rising to 15.4 percent and then 15.5 percent, and capital adequacy ratios climbing to 20 percent indicators that risk-focused governance, strategic advisory inputs, and disciplined financial management correlate with longer-term performance stability. 

Real Estate and Capital Planning

Real estate developments including giga projects under Vision 2030 have similarly benefitted from data-driven advisory insights. Entities using predictive analytics for capital planning have reported up to 18 percent higher ROI on property portfolios, significantly reducing expenditure overruns and improving asset utilisation.

These case examples not only validate advisory contributions in quantitative terms but illustrate how targeted consulting interventions influence strategic outcomes across critical industries in the Kingdom.

Overcoming Barriers: Common Myths About Advisory Investment

Despite the growing evidence of ROI benefits, some firms remain hesitant to invest in financial and risk advisory due to perceived costs, complexity, or uncertainty about measurable outcomes. Here are some common misconceptions:

Myth 1: Advisory Is an Expense, Not an Investment

In reality, advisory engagements should be framed as strategic investments that improve risk controls, free up capital, and inform revenue-enhancing decisions. The quantifiable benefits such as reduced failure rates, faster break-even, and improved capital allocation clearly outweigh advisory costs when structured and tracked correctly.

Myth 2: Advisory Only Matters for Large Corporates

While large enterprises often have complex advisory needs, small and medium enterprises (SMEs) also benefit significantly from structured financial and risk consulting. By institutionalizing risk frameworks and financial planning early, SMEs can access capital more easily, strengthen stakeholder confidence, and scale sustainably.

Myth 3: Advisory Does Not Impact Core Business Metrics

Advisory interventions directly impact core performance indicators such as profitability, cost efficiency, liquidity, and investor confidence all of which feed into ROI. Firms that quantify advisory outcomes using metrics such as expected loss reduction, project success rates, and profitability improvements derive measurable insights that can be benchmarked and optimized over time.

The Future of Advisory in Saudi Arabia

As Saudi Arabia’s economic complexity deepens, so does the need for advanced advisory models that combine analytical rigour with sector insight. Emerging technologies including artificial intelligence, predictive analytics, and integrated risk platforms are increasingly becoming part of the advisory toolkit, enabling faster insights and real-time risk monitoring.

The evolving landscape suggests that firms adopting sophisticated advisory frameworks will not only manage risk more effectively but will unlock strategic returns that translate into sustained competitive advantage.

ROI Through Strategic Advisory Engagement

In conclusion, financial and risk advisory can significantly increase ROI for KSA firms by enabling better decision-making, reducing unexpected losses, improving operational efficiency, and strengthening governance practices. Through structured advisory risk consulting interventions including predictive analytics, stress testing, and regulatory compliance support firms gain both foresight and operational agility.

Emerging data from 2025 and 2026 underscores the tangible impact of advisory services on project success rates, investment efficiency, market share, and investor confidence. When coupled with professional expertise and forward-looking tools, advisory engagements drive value that materially improves ROI and strategic outcomes.

Ultimately, Insights Advisory and other specialised advisory partners play a crucial role in guiding firms through this complex landscape, transforming risk into opportunity and delivering measurable, data-driven results that support resilient growth and long-term performance in the Kingdom of Saudi Arabia.