Deloitte Revenue Boosted by Emerging Markets, CEO Salzberg SaysArif Sharif
Deloitte Touche Tohmatsu Ltd.’s emerging markets business is leading revenue growth as faster economic expansion in countries including India, China and the Middle East region boosts demand for financial advice.
Deloitte, whose services include audit, consulting and corporate restructuring advice, will post “about the same growth” in revenue this year as last year’s 8.6 percent rise supported by emerging markets, Chief Executive Officer Barry Salzberg said in an interview in Dubai April 4. Revenue from advisory services was growing at double-digit rates, he said.
Deloitte’s revenue rose to $31.3 billion in the fiscal year ending May 31, increasing at the fastest pace in four years, its results show. The firm has committed to investing about $750 million over the next three fiscal years in 11 priority markets, mostly on people. That will boost headcount to 250,000 by the middle of 2016 from about 200,000, Salzberg said.
“The fastest growing markets for us are the emerging markets, and we are seeing strength in markets like India, China and Brazil” Salzberg said. Deloitte is very “bullish” on the Middle East as well and is investing in the region, he said.
Gulf Arab countries from Saudi Arabia to Qatar and the United Arab Emirates are spending billions of dollars to build houses, power plants and refineries to diversify their economies, boosting demand for financial advisory services. Economic growth in most countries in the six-nation Gulf Cooperation Council will be 4 percent or higher this year, Standard & Poor’s said in a report today.
Deloitte expects its business in Saudi Arabia and Libya to grow as governments boost investments, Salzberg said.
The company, which trails Ernst & Young in the Middle East, expects to increase the number of employees in the region by as much as 10 percent this year from about 2,700, said Omar Fahoum, CEO of Deloitte Middle East. A shortage of talent, enhancing operational efficiency and public sector transformation were some of the region’s key issues, Fahoum said.