Regional Review:
Africa & the Middle East
Diverse markets but a collective need for advice providing opportunity for Praxity firms
This edition of Praxity’s HUB regional review focuses on Africa and the Middle East. Praxity groups these jurisdictions into a single region, but few regions are as diverse. Markets such as Saudi Arabia and the United Arab Emirates are advancing rapidly in areas including digital tax administration, corporate governance and technology adoption.
Across parts of Africa, meanwhile, firms continue to navigate economic reform, currency volatility and the ongoing development of regulatory frameworks. Yet beneath these differences, several common themes are emerging.
Across the region, digitisation is reshaping compliance, regulatory expectations continue to rise, investment is increasingly crossing borders, and clients are seeking more specialised expertise. Together, these forces are creating both challenges and opportunities for Praxity member firms.
Digitalisation is reshaping compliance
One of the clearest regional trends is the move towards digital reporting and greater regulatory visibility. Saudi Arabia's e-invoicing regime has become one of the most advanced examples globally, while the UAE is preparing to introduce its own framework.
Elsewhere, countries including Kenya and Nigeria are advancing digital tax initiatives designed to increase transparency and improve tax collection. For businesses, this represents far more than a compliance exercise. Real-time reporting requirements are driving investment in technology, process improvements and data quality. For professional services firms, demand is growing not only for compliance support but also for guidance on implementation, systems integration and digital transformation.
Digitalisation is also creating the foundations for wider adoption of automation and AI across audit, accounting and tax workflows. While adoption remains at different stages across the region, many firms are already exploring how technology can improve efficiency and deliver deeper insights for clients.
For more on the evolution of AI adoption across independent firms you can read about it in our Thought Leadership summary here.
Expectations around governance and reporting are rising
Alongside digitalisation, businesses are operating in a more sophisticated regulatory environment. Developments linked to the OECD's Pillar Two framework are introducing new considerations in parts of the Gulf, while South Africa continues to strengthen its audit oversight and governance. Having held the World Economic Forum's top ranking for the strength of its auditing and reporting standards for seven consecutive years to 2016, the country has since prioritised reforms to reinforce quality and independence.
At the same time, ESG reporting expectations continue to develop across the region, driven by regulators, stock exchanges, investors and international capital markets. Although progress varies significantly between jurisdictions, the overall direction of travel is clear. Organisations face increasing expectations around transparency, governance and reporting quality. For mid-sized firms, this creates opportunities to support clients as they navigate regulatory change, strengthen reporting processes and respond to growing stakeholder expectations.
Rather than simply interpreting local requirements, firms are increasingly helping clients understand how domestic regulation interacts with international standards and investor expectations.
Investment flows are creating new opportunities
Perhaps the most commercially significant trend is the growing movement of capital across the region. Investment from Gulf countries into Africa has become a structural feature of the market, particularly in sectors such as infrastructure, logistics, renewable energy and natural resources.
At the same time, Gulf economies continue to pursue ambitious diversification strategies, creating opportunities linked to capital markets, business transformation and transaction advisory work. As businesses expand across borders, clients increasingly require advisors who can coordinate support across multiple jurisdictions. The ability to combine local market knowledge with international capability is becoming a competitive differentiator. This trend is particularly relevant for Praxity firms. As investment flows become more regional, collaboration between member firms can play an increasingly important role in helping clients navigate different regulatory environments, tax systems and commercial landscapes.
Griffin Nagda & Company
Griffin Nagda & Company adds important texture to the Gulf-into-Africa picture. The investment story retains real scale and momentum, but the current environment has shifted the execution timeline rather than the underlying direction. As regional pressures mount and capital-preservation instincts sharpen at home, Gulf states are reassessing overseas exposure, and several large multi-jurisdictional mandates have stalled at or before financial close. The deals most likely to proceed in the near term are targeted and tied directly to strategic interests, such as critical-minerals supply chains, selected port extensions and food-security logistics. A further shift matters for anyone advising on these deals. The GCC is no longer acting as a single investment bloc, and a Saudi-led African transaction and a UAE-led transaction in the same sector now call for separate analytical frameworks. Joint Gulf platforms that were in structuring are being redesigned as bilateral arrangements. Advisory complexity has risen even as headline deal flow has compressed, which places a premium on coordinated delivery between Gulf and African member firms across the Alliance.
There is an important counterpart to this on the African side. Several economies depend structurally on remittances earned in the Gulf. The Gambia, Lesotho, Comoros, Liberia and Somalia each draw more than a tenth of GDP from diaspora transfers, and in the Gambia the figure reached 31.5 per cent in 2024. A sustained slowdown in Gulf construction and hospitality employment would therefore compress the very fiscal space that makes domestic infrastructure investment viable, a compounding effect that headline deal figures do not capture. For firms advising African clients, this puts a premium on scenario planning and on realistic assumptions about the pace of inbound Gulf capital.
Specialist expertise is becoming a differentiator
The region's diversity means client needs vary considerably between markets, but one trend appears consistently: demand for specialist expertise is growing. In Central and Southern Africa, mining and critical minerals continue to generate demand for advisory, assurance and ESG-related services. In West Africa, fintech and digital payments remain significant growth areas.
Across a number of jurisdictions, demand for forensic, anti-money laundering and governance-related services is also increasing. At the same time, talent shortages remain a challenge. Competition for experienced professionals is particularly intense in Gulf markets and in South Africa, with firms seeking new ways to attract and retain skilled people. The result is a greater emphasis on sector expertise and specialist knowledge. Increasingly, clients are looking for advisers who not only understand local markets but also have deep experience in the industries in which they operate. For many firms, collaboration is becoming just as important as scale.
African mining shows this most clearly. As Gulf and other international capital targets copper, cobalt and lithium assets across the continent, clients need advisers who can combine local jurisdictional knowledge with cross-border transaction and ESG assurance experience. Much of this pipeline is currently deferred, but the firms in African markets that build that depth now, and connect it to counterparts elsewhere in the Alliance, will be well placed when deployment resumes. It is a reminder that the receiving side of the region holds expertise the Alliance can put to work, well beyond simply absorbing inbound capital.
Regional perspectives
Africa
Across Africa, opportunities and challenges vary considerably by market. North African economies continue to pursue economic reform while managing currency pressures. West Africa remains a centre for fintech innovation and digital financial services. Central and Southern Africa continue to generate significant advisory opportunities linked to mining, governance, ESG and cross-border investment. Meanwhile, East Africa's rapidly developing digital economy represents an area of long-term interest for firms operating across the continent.
Middle East
Praxity firms across Israel, Jordan, Saudi Arabia, the UAE and Yemen are operating in some of the region's most dynamic markets. Economic diversification programmes, digital tax initiatives and growing capital markets continue to create advisory opportunities, while competition for talent remains intense. The region is also among the leaders in adopting digital compliance technologies and exploring AI-enabled professional services.
In focus: Kenya
A member firm perspective from Ndakala, Praxity’s member firm in Kenya.
Investment activity in Kenya Kenya continues to strengthen its position as one of Africa’s leading investment destinations, demonstrating resilience amid a challenging global economic environment. According to UN Trade and Development’s World Investment Report 2026, Kenya attracted US$3.2 billion in 2025, more than double the 2022 figure, signalling strong investor confidence.
Investment activity remains robust, although capital deployment is becoming increasingly selective. Investors are prioritising sectors with strong growth fundamentals, scalability and long-term sustainability. Renewable energy, digital infrastructure, food security and agribusiness, financial services and manufacturing continue to attract significant interest, driven by Kenya’s strategic position as a regional economic hub and gateway to East Africa.
Kenya’s globally recognised geothermal resources, together with broader renewable energy opportunities, remain key investment drivers. At the same time, accelerating digital transformation across commerce, financial services and public administration is creating new opportunities for technology and infrastructure investment.
Gulf investors in Africa
Gulf investors have pledged significant capital into African markets, including Kenya, motivated by diversification beyond oil revenues, strategic positioning in food security, energy and logistics, and long-term partnerships in infrastructure and real estate.
Many of these commitments are currently on hold, however, reflecting global interest rate volatility affecting capital flows, currency risks and inflationary pressures in African economies, regulatory uncertainty and evolving tax regimes in host countries, and cautious capital deployment amid geopolitical tensions.
What drives businesses in East Africa
Businesses operating in East Africa continue to place significant emphasis on financial transparency, regulatory compliance and effective governance. Consequently, statutory audits remain a core area of demand, reflecting the importance organisations attach to accurate financial reporting, stakeholder confidence and accountability.
Beyond traditional assurance services, clients are increasingly focused on tax compliance, financial reporting quality, operational efficiency and sustainability-related matters. Environmental, social and governance considerations are rising on executive agendas as organisations respond to stakeholder expectations and evolving reporting requirements.
Tax remains a particularly critical area of focus. The implementation of Kenya’s Finance Act 2026 introduced significant changes across income tax, withholding tax, value-added tax, excise duty and country-by-country reporting requirements. A parallel drive towards a robust national tax policy seeks to reduce volatility in taxation and provide the certainty that supports long-term, reliable tax planning for multinationals. These developments reinforce the need for businesses to treat tax planning and compliance as a continuous discipline rather than a periodic activity.
Cross-border transactions and withholding tax obligations continue to present practical challenges, particularly for businesses operating across multiple jurisdictions. At the same time, tax authorities are increasingly using digital platforms, data analytics and real-time reporting to strengthen compliance monitoring and enforcement.
These developments are driving demand for integrated advisory solutions that combine technical expertise with practical commercial insight, enabling organisations to respond confidently to a rapidly changing regulatory landscape.
Collaboration with Praxity
For Kenyan companies expanding into new African markets, Praxity facilitates connections with advisers who understand local market conditions, regulatory requirements and business practices. International investors entering Kenya benefit in the same way, through collaboration between advisers in their home markets and trusted local specialists, reducing execution risk and accelerating market entry.
Opportunities for closer collaboration exist in international tax, ESG and sustainability advisory, transaction support, market intelligence and cross-border expansion services. By combining global connectivity with local expertise, Praxity firms are well placed to help clients identify opportunities, manage risks and create sustainable value across multiple markets.
For Ndakala, the Alliance represents more than a referral arrangement. Its strategic significance lies in delivering connected expertise, coordinated client service and market intelligence across jurisdictions, while maintaining the trusted relationships that clients value. As regional integration and cross-border commerce continue to grow, this capability will become increasingly important in supporting clients’ ambitions throughout East Africa and beyond. Kenya’s investment story is one of resilience and opportunity, though success requires navigating regulatory complexity and evolving client expectations. Gulf states’ commitments highlight Africa’s attractiveness, while their current pause underscores the importance of risk management and regulatory clarity. The Alliance model offers Ndakala a distinct strategic edge, allowing the firm to serve clients across multiple jurisdictions by combining global connectivity with deep local expertise, enabling businesses to expand confidently and sustainably.
What the region contributes to the Alliance
Beyond individual markets, Griffin Nagda & Company highlights what the Gulf brings to Praxity’s global capability. Deep familiarity with sovereign wealth fund structures, Islamic finance, free-zone regulation and the evolving UAE and Saudi tax regimes gives Gulf member firms a specialist profile that complements the technical depth of the Alliance’s mature Western practices. African member firms bring their own distinct strengths, from deep experience in mining and natural-resource advisory to the fintech and digital-payments capability concentrated in West Africa, alongside audit and governance expertise developed under quickly evolving local regimes. Set beside the Gulf’s specialist profile, these give the region a broad and complementary capability across the Alliance. Cross-border referral flows are already active in both directions, with Gulf clients expanding into Africa and South Asia and, in turn, Asian and European clients investing into the region, creating joint-delivery opportunities across member firms. The region’s position at the intersection of Africa, South Asia and Europe also gives it a connective role that extends well beyond its own client base, reinforcing the value of the Alliance model for clients that operate across several jurisdictions at once.
Firms across the region
Diverse markets, shared direction
From the Gulf to East Africa, very different economies are converging on a common set of pressures and opportunities. For clients, the challenge is more often, understanding how multiple regulatory, commercial and reporting environments interact. This is where the strength of the Alliance model becomes particularly valuable.
Looking ahead Africa and the Middle East remain among the most diverse regions in the global professional services landscape. However, despite significant differences between individual markets, the broader direction is increasingly consistent. Digitilisation is transforming compliance, regulatory expectations continue to rise, investment is becoming more regional, and clients are demanding greater specialist expertise. As businesses expand, investors seek opportunities across multiple jurisdictions and regulatory requirements become more complex, firms that can provide coordinated, specialist support will be well placed to help clients navigate the next phase of growth.