PwC Faces Heavy Cuts in Middle East After Rift With Saudi Fund

PwC has scaled back sharply in the Middle East, shedding around 60 partners and more than 1,500 staff after losing access to new advisory work from Saudi Arabia’s Public Investment Fund (PIF). The retrenchment marks a dramatic reversal for a firm that only a year ago was riding a wave of regional growth.

The trouble began when the sovereign wealth fund, one of PwC’s biggest clients in the Gulf, froze the firm out of fresh consulting assignments. People familiar with the matter link the rupture to a conflict of interest around recruitment from a PIF-backed project, but the ban also reflects a cooling of Riyadh’s appetite for expensive outside advisers.

Until recently, PwC had been hiring aggressively to service the Gulf’s mega-projects, from futuristic city schemes to infrastructure overhauls. When that pipeline slowed, the company suddenly found itself overstaffed. Regional revenue growth, once measured in double digits, slowed to a trickle.

The decision to cut jobs has reshaped the firm’s leadership as well. Laura Hinton, a senior partner with experience in restructuring, has been elevated to co-head of the region and is expected to take sole charge within a year.

Competitors have been tipped as possible beneficiaries of PwC’s loss. Firms such as McKinsey, Boston Consulting Group, Deloitte, EY, and KPMG are all active in Saudi Arabia and are thought to be positioning themselves for opportunities. Yet so far, no confirmed contract awards have been made public showing that PwC’s former mandates have been handed directly to rivals. Instead, most of the visible contracts signed by PIF subsidiaries in recent months relate to construction, design, and project delivery.

Analysts note another dynamic at play: Riyadh has made it clear it wants to rely less on global consultancies and more on domestic or regional providers. Some of PwC’s lost ground may therefore be taken not by its usual competitors, but by smaller firms based in the kingdom.

The episode illustrates how quickly fortunes can shift in a market dominated by a single powerful client. PwC, once at the forefront of Saudi Arabia’s transformation drive, now finds itself in repair mode—working to rebuild relations with the kingdom while cutting costs to match leaner demand. Whether it can regain its footing may depend less on rivals and more on how Saudi Arabia chooses to balance outside expertise with its own ambitions.

Source: comp.

Keir Starmer’s Long Road to Recognising Palestine

Since becoming Labour leader, Keir Starmer has been careful in his language on the Middle East. Now, as prime minister, his position on Palestinian statehood is under intense scrutiny, shaped by both events abroad and political pressures at home.

The turning point came after the Hamas attacks in October 2023 and Israel’s military campaign in Gaza. Starmer condemned the violence against Israel and affirmed its right to defend itself, but his reluctance to call for an immediate ceasefire created deep frustration among many Labour voters. Communities with close ties to Gaza, especially Muslim voters in northern England and London, accused Labour of ignoring their concerns. Councillors and MPs voiced unease, and opinion polls suggested the party risked losing trust among parts of its base.

As the humanitarian crisis in Gaza worsened, images of destroyed neighbourhoods and displaced families dominated the news. Labour’s careful stance looked increasingly out of step with the mood among many of its supporters. Starmer gradually shifted, acknowledging the scale of civilian suffering and opening the door to recognition of Palestine.

By mid-2025, he outlined a plan: the UK would recognise a Palestinian state unless Israel made progress on key issues such as halting settlement expansion, allowing aid into Gaza, and moving toward a lasting ceasefire. He tied the timeline to the autumn session of the United Nations, signalling a desire to act in step with other European countries exploring similar moves.

This shift has not been without risk. For some Muslim voters, the announcement came too late to rebuild confidence. Others within Labour, including Jewish members, worry that the move could deepen divisions and unsettle relations with Israel. Internationally, recognition is likely to be welcomed by Arab and European partners, but will draw criticism from Jerusalem and Washington.

Starmer’s calculations are clear. He wants to show Labour is principled on foreign policy but not reckless, balancing humanitarian concerns with diplomatic realities. Recognition of Palestine, if it goes ahead, would allow him to demonstrate moral leadership while reclaiming credibility with parts of his voter base. Yet it also raises the question of whether such a move can shift the dynamics on the ground, or whether it risks being a symbolic gesture in a conflict where progress remains elusive.

For now, Starmer’s long journey on this issue shows how domestic politics, international diplomacy, and the tragedies of war can collide — forcing a cautious leader to take a step he once sought to avoid.

Nvidia’s Rise: How a Chipmaker Became the Face of the AI Economy

For years, Nvidia was best known among gamers for its powerful graphics cards. Today, it has become one of the most closely watched companies in the world, largely because of its central role in the artificial intelligence boom. Its hardware and software now power everything from generative AI models to supercomputers, making it a fixture in global business headlines.

The company’s core strength lies in advanced processors designed to handle the enormous calculations behind modern AI. These chips are not only in high demand by tech giants building large language models but are also being deployed across industries from healthcare to finance. As a result, Nvidia’s data-center business now dwarfs its gaming segment, bringing in the bulk of its revenue.

Recent moves underscore this pivot. The company has been acquiring technology, investing in cloud infrastructure, and building out its software ecosystem to lock in developers who want their systems to run efficiently on Nvidia hardware. Its dominance has created a powerful feedback loop: more developers rely on Nvidia’s tools, which in turn strengthens demand for its chips.

But success has brought scrutiny. Regulators are keeping a close eye on the firm’s market power, particularly in China, where investigations into past acquisitions have resurfaced. Washington has also limited the export of high-end chips to Chinese customers, a policy that could dent sales in one of Nvidia’s biggest markets. Critics argue the company’s reliance on a single growth engine—AI infrastructure—makes it vulnerable if demand slows or competitors catch up. Others warn about the environmental impact of the energy-hungry systems its chips enable.

Even so, enthusiasm remains high. The continued surge in AI adoption means Nvidia’s products are often sold out before they leave the factory. Investors and bloggers alike note that while competitors such as AMD and Intel are racing to close the gap, Nvidia still offers the performance and developer ecosystem that make it hard to dislodge.

Nvidia’s strategy appears straightforward: expand its lead in AI computing, deepen its ties with cloud providers and enterprises, and turn its software platform into an indispensable layer for AI development. Whether that path will sustain its breakneck growth—or invite tougher competition and regulatory limits—remains one of the most important questions in global technology today.

Dubai’s property market shows cracks as speculative buyers rethink

Dubai’s real estate boom, one of the strongest globally over the past five years, is showing signs of strain. Prices in many districts are still hitting record highs, but investors who entered the market hoping to make quick profits on unfinished homes are beginning to retreat. Properties once resold within days are now taking longer to move, with some owners lowering expectations to find buyers.

A major factor is the sheer volume of new homes scheduled for delivery. Market analysts warn that tens of thousands of units are due to be handed over between 2025 and 2027. That wave of completions could shift the balance from undersupply to surplus in certain neighborhoods, particularly in the mid-range apartment segment. The possibility of a correction has already prompted a more cautious stance among investors who previously relied on rapid turnover of off-plan contracts.

At the same time, the top end of the market remains robust. Large villas and luxury properties continue to attract international capital, and the overall price indices still reflect double-digit gains year on year. But this strength masks a split: well-located family homes remain competitive, while smaller apartments—the typical target for speculative buying—face more pressure from both rising supply and stricter financing conditions.

Commentary from brokers and industry writers over the past few months highlights this shift in mood. Earlier in the summer, much of the discussion was still focused on flexible developer payment plans and high rental yields. More recent commentary stresses the risks of oversupply, shrinking unit sizes, and the importance of buying for long-term use rather than fast turnover.

For end-users and long-term landlords, Dubai remains attractive, supported by population growth, new infrastructure, and rental demand. For flippers who hoped to exit quickly before completion, the calculus is less certain. With more projects due in the next two years, the market appears to be rewarding those who focus on stable rental income and solid locations rather than speculative assignments.

Source: comp.

Berlin Hyp Opens “B-One” Sustainable Headquarters in Berlin

fletcher@cijeurope.com
19 September 2025
Office

Berlin Hyp has completed its new “B-One” headquarters on Budapester Straße 1 in the Tiergarten district of Berlin. The building, officially inaugurated in September 2025, consolidates all Berlin staff of Berlin Hyp and employees of Landesbank Baden-Württemberg (LBBW) under one roof.

Designed by C.F. Møller Architects and built by Ed. Züblin AG under the oversight of bdp real estate GmbH, the eleven-storey structure reaches a height of nearly 45 metres and offers around 19,000 square metres of space. It accommodates approximately 500 workstations and includes open-plan areas, team and workshop rooms, quiet zones, and a multi-level “Town Hall” with a prominent open staircase that doubles as a gathering, event and reception space.

Sustainability has been central throughout the project. During demolition of the predecessor building, about 88% of materials were recycled. The new building is designed to consume over 50% less energy than its predecessor, with photovoltaic panels integrated into the façade, a geothermal system using 60 boreholes, concrete core temperature control, green roofs and façades, and systems for rainwater retention. Berlin Hyp is pursuing DGNB Platinum certification for the completed building, adding to the DGNB Platinum award already achieved for the deconstruction phase.

The headquarters also supports modern working environments, with interiors designed for flexibility between collaborative and individual work. Retreat zones, open-plan spaces, and dedicated workshop areas are complemented by social and creative meeting points. Employees were actively involved throughout the development process, from site visits to input on design and fit-out decisions.

Construction of “B-One” began in January 2023 and was completed in July 2025, following the demolition of the previous headquarters which started in 2020. With the new building, Berlin Hyp underscores both its commitment to sustainable architecture and its long-term presence in the German capital as part of LBBW’s multi-location strategy.

Photo: © Berlin Hyp/Franz Brück

NEINVER Appoints Agnieszka Chomczyk as Marketing Manager in Poland

fletcher@cijeurope.com
19 September 2025
Jobs

NEINVER has appointed Agnieszka Chomczyk as Marketing Manager for its operations in Poland. In her new role, she will oversee marketing communications for the FACTORY outlet centres, the country’s largest chain in this segment, as well as for the Futura retail park.

Chomczyk has more than ten years of experience in marketing and communications, having previously worked with Groupon, LOT Polish Airlines, and Kuźniar Media & Voice House. At NEINVER, she will lead a team of seven, coordinating both strategic and day-to-day marketing activities, including seasonal campaigns, sales promotions, and ongoing brand communication. She will also provide support to NEINVER’s retail partners operating within the FACTORY centres.

She holds degrees in Journalism and Social Communication (PR and Media Marketing) from the University of Warsaw and in Marketing from the University of Gdańsk. She has also completed specialist training programmes, including “AI in Marketing” at EY Academy of Business and “DIMAQ Professional” at IAB Polska.

Czech Construction Rebounds but Permitting Slump Looms

Czech construction activity accelerated in the first half of 2025, while new-home sales in the capital surged back toward pandemic-era highs. Developers and advisers say cheaper mortgages and revived household demand are bringing projects off the shelf, yet a historic collapse in building permits risks starving the pipeline over the next 12–24 months.

Official data show construction output expanding strongly into mid-year, consistent with a cyclical rebound from last year’s slump and a favourable base effect.

On the demand side, Prague’s primary market has tightened. Developers’ joint figures indicate roughly 4,300 new flats sold in the first half, up 23 percent versus H1 2024—the second-best half-year in 15 years—with average advertised prices in the city pushing above CZK 170,000 per sqm. The resurgence aligns with data from major residential players Central Group, Skanska and Trigema.

Financing conditions have improved. Banking association figures show the average mortgage rate falling to about 4.6 percent in May, and the Czech National Bank has resumed gradual easing, cutting its policy rate to 3.5 percent in May. Cheaper credit has helped unlock deferred demand and boosted reservation activity since late Q1.

Supply, however, is not keeping pace. While output is rising, the number of building permits issued in H1 2025 dropped to roughly 29,200—the lowest first-half total in 25 years and the first time below 30,000. Local business press and mortgage monitors warn that today’s sales momentum is drawing down “old” permitted stock, with fewer projects entering the pipeline.

Sector voices continue to point at administrative bottlenecks. The new Construction Act and digital permitting were intended to speed approvals, but audits of the rollout have found delays, system flaws and staffing shortfalls at authorities. A parallel reform created the Specialised Transport and Energy Construction Authority (DESÚ) to fast-track strategic infrastructure; developers argue that a similar “single-hand” approach is needed for housing to achieve scale.

The mixed picture is visible in the hard numbers. Starts and completions have lagged even as headline construction output improves, suggesting more renovation and engineering work in the near term and fewer fresh residential projects breaking ground. Data for early 2025 showed double-digit declines in started and completed dwellings versus the prior year, underscoring the pipeline risk.

For now, pent-up demand, falling borrowing costs and modest real-income recovery are supporting transactions—especially for mid-market units and well-located new builds in Prague. But unless permitting accelerates through 2026, analysts caution that the market could face a renewed scarcity of deliverable product, prolonging affordability pressures and pushing prices higher.

Bottom line: the Czech housing cycle is healing, helped by cheaper mortgages and a low comparison base, yet the sharp drop in permits is a red flag. Without a durable fix to approvals—and clearer, predictable timelines—today’s recovery risks stalling before it translates into sustained new supply.

Source: CTK

Stark Inequalities Persist Across the EU Despite Rising Incomes

A new Eurostat report on European living conditions reveals persistent divides in income distribution, material deprivation, and life satisfaction across the EU, even as overall median incomes have risen.

The 2025 edition of Key Figures on European Living Conditions shows that median disposable income in the EU stood at €21,253 PPS per inhabitant in 2024, with wide disparities between member states. Luxembourg reported the highest median income at €37,781 PPS, while Slovakia, Hungary, and Greece had levels close to €12,000 PPS.

At the same time, income inequality, measured by the Gini coefficient, remained uneven. The EU average was 29.3 percent in 2024, but disparities ranged from below 25 percent in Slovakia, Czechia, and Slovenia—among the most equal societies—to 38.4 percent in Bulgaria and 35.3 percent in Lithuania, highlighting sharper divides in parts of Eastern Europe.

The share of people at risk of poverty or social exclusion remains stubbornly high. In 2024, 21.4 percent of EU residents in cities and 21.3 percent in rural areas were affected, with only a slight improvement compared to previous years. Romania and Bulgaria showed the widest urban-rural gaps, with poverty risk 27 and 19 percentage points higher in rural areas than in cities.

Educational attainment plays a major role. More than a third of adults with low education levels were at risk of poverty, compared to just over 10 percent among university graduates. Unemployment amplified the vulnerability, with two-thirds of unemployed people at risk. According to the OECD, these disparities mirror broader global patterns where rural and low-educated populations remain more vulnerable despite overall income growth.

Severe material and social deprivation fell slightly to 6.4 percent of the EU population in 2024, but children were disproportionately affected, with 7.9 percent deprived compared to 5.1 percent of older people. Rates were highest in Romania at 17.2 percent, Bulgaria at 16.6 percent, and Greece at 14.0 percent, while Slovenia reported the lowest at just 1.8 percent. Child-specific deprivation remains a critical issue. One in three children in Romania and Greece lacked basic items such as daily fruit, proper shoes, or internet access. UNICEF has warned that persistent child deprivation undermines long-term social cohesion and economic productivity.

Despite these pressures, average life satisfaction across the EU was rated 7.2 out of 10 in 2024. Finland, Romania, and Slovenia reported the highest levels at 7.7 or above, while Bulgaria scored the lowest at 6.2. Trust in others, a key measure of social cohesion, averaged 5.8 across the EU. It was notably higher in Romania, Finland, and Poland at 7.0 or more but lowest in France, Greece, and Cyprus, which all scored below 5. The World Bank has previously linked trust levels to economic resilience, noting that countries with higher interpersonal trust tend to recover faster from economic shocks.

The report also highlights ongoing challenges for people with disabilities. Across the EU, 9.7 percent of employed people with disabilities were at risk of poverty, compared to 8 percent of those without. Meanwhile, self-perceived discrimination remains widespread: nearly 15 percent of non-EU citizens living in the EU reported severe material and social deprivation, more than double the EU average.

The findings present a mixed picture. While Europe has seen rising real incomes—Romania’s median income, for instance, has surged by 162 percent since 2010—deep divides persist between and within countries. Analysts say these figures should serve as a warning. Income growth is not enough if large sections of the population, especially children and rural communities, remain excluded. The European Anti-Poverty Network has stressed that the EU must now prioritise inclusive growth policies, combining income support with access to services and education.

Source: EUROSTAT
Image: EUROSTAT

Poland Moves to Safeguard “VAT in Return” for Importers After AIS/IMPORT PLUS Rollout

Poland’s Council of Ministers has approved a VAT deregulation bill to preserve the option for qualifying importers to settle import VAT directly in their tax return, addressing a gap created by June’s changeover to the AIS/IMPORT PLUS customs system.

The draft amendment to the VAT Act—presented as part of a wider deregulation package—targets companies authorised to use simplified customs declarations. After AIS/IMPORT PLUS went live on 19 June, the simplified declaration no longer included duty and tax data; these figures are calculated later in a supplementary notification. That sequencing left some authorised traders unable to meet the conditions for “VAT in return” (Article 33a) for imports cleared on a simplified basis. The government’s communication on the draft explicitly cites this problem and states that the new rules are intended to “allow entrepreneurs to continue settling VAT on imports directly in the tax return.”

AIS/IMPORT PLUS replaced Poland’s prior import-clearance system and introduced new JPK reporting references for importers using Article 33a. Professional advisories have warned since the switchover that, for simplified entries processed in AIS/IMPORT PLUS, the MRN and date of the supplementary customs declaration become the operative data points for VAT reporting—complicating timelines for taxpayers relying on deferred settlement in the VAT return.

According to the government, the bill restores certainty for authorised traders by adapting Article 33a mechanics to the new customs workflow, ensuring they can still reduce cash-flow strain by offsetting import VAT in the domestic return rather than paying at the border. The measure will enter into force 14 days after publication in the Journal of Laws.

Tax firms note that the proposal dovetails with other 2025 VAT adjustments tied to the AIS/IMPORT PLUS transition, including clarifications on JPK entries for imports settled under Article 33a and extensions of correction windows for taxpayers with simplified-declaration permissions and AEO status. Further guidance is expected as the bill moves through Parliament and secondary rules are finalised.

Industry reaction has been broadly positive. Trade and customs advisors say the fix should prevent working-capital shocks for compliant importers that rely on deferred settlement, while keeping Poland aligned with EU customs changes that triggered the shift to AIS/IMPORT PLUS in June.

What changes for importers now: once enacted, eligible businesses using simplified declarations should again be able to settle import VAT through their VAT return under Article 33a, using data from the supplementary customs notification required by AIS/IMPORT PLUS. Until publication, companies are urged to maintain careful MRN tracking and documentation to support JPK reporting and any subsequent corrections.

Sources: Chancellery of the Prime Minister (gov.pl) notice on the draft VAT amendment; professional updates from international tax and customs advisors on AIS/IMPORT PLUS implementation and Article 33a reporting

IREMIS Advises on Acquisition of Steigenberger Hotel am Kanzleramt in Berlin

fletcher@cijeurope.com
19 September 2025
Office

Luxembourg-based real estate investment manager IREMIS has advised a leading U.S. asset manager on the acquisition of the Steigenberger Hotel am Kanzleramt in Berlin, one of the German capital’s flagship hospitality properties.

Situated next to Berlin’s main railway station and in close proximity to the federal government district, the hotel features 339 rooms, large-scale conference facilities, and a wellness area overlooking the Chancellery. Since opening, it has established itself as a prime destination for both international business travellers and tourists.

The acquisition marks a further expansion of IREMIS’s hotel and leisure platform, which focuses on securing and managing high-quality hospitality assets in major European cities. Beyond arranging the financing and facilitating the transaction, the firm will continue to work alongside the operator, Steigenberger Hotels & Resorts, part of Deutsche Hospitality, to strengthen the property’s positioning and support long-term value creation.

Peter Lenhardt, Head of the Hotel and Leisure Division at IREMIS, said:
“We are proud to have been involved in the acquisition of such a prestigious hotel in the heart of Berlin on behalf of a leading U.S. asset manager. This investment reflects our shared conviction in the resilience of the hospitality sector and in Berlin’s strong appeal as a leading European travel and business destination.”

The deal underscores renewed investor confidence in Europe’s hotel market, particularly in core cities such as Berlin, which continues to benefit from robust tourism demand and its role as a major business hub.

« Previous 1 … 216 217 218 219 220 … 501 Next »

Latest news

All posts by fletcher@cijeurope.com.