The Gulf’s business community remained resilient in March, with new data from Sovereign PPG Corporate Services revealing that company formation and structuring accounted for 55% of all its client activity in March, up from 42% in January and 48% in February, highlighting sustained confidence despite ongoing regional tensions.
The data indicates that businesses across the region continued to prioritise long-term investment, restructuring, and market entry, even as March brought disruption to travel, trade, and sentiment.
Demand for compliance, PRO, and post-setup services also increased – particularly in Saudi Arabia, the UAE, and Bahrain – as organisations strengthened governance and risk management frameworks. While residency and immigration requests declined from around 31% at the start of the quarter to 21% by March, this reflected workforce consolidation rather than contraction.
Meanwhile, demand for payroll, HR, and accounting support continued to grow, as companies sought expert guidance to manage obligations and maintain operational continuity under tighter liquidity conditions.
“Periods of tension test how businesses respond in practice,” said James Elliot-Square, Commercial Director – Middle East, Sovereign PPG Corporate Services. “What we’re seeing across the Gulf is a focus on continuity alongside forward planning. Companies are maintaining stability today while continuing to invest in structure, governance, and future growth.”
Regional agility supports continued activity
Governments across the GCC moved quickly to support liquidity, trade flows, and investor confidence, introducing financing measures and streamlining processes to minimise disruption. At the same time, businesses are actively reassessing structures and operating models to strengthen resilience while positioning for future opportunities.
Key trends:
* Digital transformation accelerating: Demand for fintech, enterprise IT, and cloud-based structures continues to drive new company formation and expansion, with platform-led and technology-enabled models attracting increasing regional and international investment.
* Compliance and governance expanding: Heightened regulatory focus is driving increased demand for compliance and administrative support, with businesses strengthening transparency and operational discipline. In March, Sovereign PPG recorded steady growth in compliance and portal maintenance support in Saudi Arabia, alongside a rise in accounting and HR mandates in the UAE and increased licence renewal activity in Bahrain.
* Energy sector diversification continuing: Oil-linked enterprises are increasingly pivoting toward technology enablement, maintenance, and value-added services, sustaining performance despite logistical pressures.
* Cross-border activity remaining strong: The UAE continues to act as a regional structuring hub for international investment and company setup, while Saudi Arabia and Qatar drive expansion across technology, consultancy, and infrastructure sectors. Sovereign PPG has recorded rising demand for cross-border compliance and licensing support, as businesses adopt more complex, multi-jurisdictional structures to maintain operational flexibility.
* Cash flow and continuity prioritised: Companies are placing greater emphasis on cost management, workforce obligations, and operational resilience. Demand for advisory support around short-term stability measures is increasing, with a focus on maintaining legal compliance while protecting employees and stakeholder trust.
“The challenge now isn’t just managing balance sheets, it’s protecting livelihoods and long-term trust,” added Elliot-Square. “Across the region, we’re seeing businesses continue to plan for the future even while managing uncertainty today. Initiatives like the Saudi-UAE trade corridor and disciplined regulatory governance, show that the Gulf’s resilience is built not only on capital but on coordination, foresight, and a sense of shared responsibility.”
Across its portfolio, Sovereign PPG is seeing continued investment in digital transformation, energy transition, and strategic structuring, supported by the Gulf’s strong institutional frameworks and connectivity.
The firm expects demand for cross-border formation, compliance, and corporate support services to remain elevated into Q2, as businesses continue to optimise structures and maintain control in an evolving operating environment. - TradeArabia News Service
