Seizing Opportunities

Co-Founder, CEO and Managing Partner, Fursa Consulting is providing debt advisory and related services in the UAE. Excerpts from the interview:

“AS IS & TO BE” — Consultants way of describing what is being done now and how it is to look after the job is completed.

Please take us through the history of Fursa Consulting and its core area of business and services?

Fursa Consulting is a leading independent advisory firm focused on providing financial advice on structured debt, equity and mergers and acquisitions to corporate and institutional clients. It was incorporated in 2014 under a license issued by the Department of Economic Development, Government of Dubai. We, at Fursa Consulting, stand shoulder-to-shoulder with our clients, providing on-the-ground insight, sharing lessons learned from others and helping them see around corners. Assisting companies across sectors to manage new sets of dynamic risks and seize fast-moving opportunities, we are committed to helping clients capitalise on the rebound.

What opportunities did Covid-19 bring about in the consulting industry?

The Covid-19 pandemic has had a profound impact on the global economy. Disruption in economic activity, coupled with high debt levels, has made borrowers vulnerable to the risks of default and bankruptcy. The key takeaways from the pandemic turmoil can be:

- Companies who were already troubled, the crisis only accelerated their fall

- Supply chain disruption in business activity led to a rise in defaults and bankruptcies

- Debt levels, already at an all-time high prior to the pandemic, surged primarily due to low interest rates

- Uneven global recovery

- Changes in business models

These factors are redefining the culture of organisations and putting additional pressures on businesses when it comes to security, ethics and compliance.

The pandemic in a way has led to a substantial and sudden demand for restructuring and debt advisory services, presenting consulting firms with opportunities. Corporate clients are seeking guidance and expertise of consultants to map out future strategies and business scenarios. There is an urgent need by clients for corporate consulting services to have pragmatic and sustainable restructuring structures for their operations, business continuity and to build resilience for any future disruptions. Entities with good corporate governance have a critical opportunity now to challenge past assumptions about risk, re-evaluate their processes and procedures, and optimise their programmes for risk management.

How do you see the current business scenario for corporate consulting in post-pandemic due to remote work, return to office, or business restructuring?

Our debt advisory vertical is active again as banks have accelerated their lending to support stalled economic growth. The UAE-based banks have shown substantial increase in their earnings during the third quarter of 2021, and no longer require the pandemic support quota from central bank of the UAE. Their sound capital buffers and stable funding profile is a great support. Thus, there is a growing demand for new debt by companies for reasons such as some businesses were forced to borrow more to keep operations running as large parts of the economy slowed or shut down, while some businesses had to invest in technology to support remote work, wherever possible, and others had to reconfigure workplaces to ensure social distancing in jobs that required in-person work.

What are your future plans?

On a large scale, the way forward looks exciting as business environment is upbeat, returning to normalcy and on growth trajectory. Moreover, consulting is never a nine to five job, hence, it can be exhausting. But the motivating factor in our role is the significant freedom and flexibility — in terms of when we work, where we work, and what we do. So, we can craft our job to a large degree. Further, in consulting, we need to create our own work structures and be accountable for the impact. We generally embrace long-term perspectives and carefully plan our own path, whilst being flexible enough to challenge our own thinking once a while. And that’s why we love our job.