The Gulf region, hit by the global downturn and sluggish growth, is ripe for corporate turnarounds but the concept is seen in a negative light by some, according to executives from US advisory firm AlixPartners.

The company, which has been in the Gulf region since 2006, expects to formally set up shop in the Dubai International Financial Centre (DIFC) in coming weeks.

'We believe there is still significant turnaround to be done,' managing director Stefano Aversa said in an interview. 'There is usually a consolidation which is very natural after a phase of explosive growth.

'I think this part of the world - even though it was in much better shape than the rest of the world - was not immune to the recession. A phase today of consolidation is needed to continue the growth, which will probably not be as explosive but still positive.'

Booming growth in the region, fuelled by a six-year run up in oil prices, halted in 2008 as the global financial crisis and lower oil prices capped runaway expansion rates. Dubai's debt crisis in late 2009 added to the gloom.

The Michigan-based firm's main business is in financial advisory, enterprise improvement and information management services as well as turnaround and restructuring.

But its recent role in the high-profile bankruptcy of General Motors and the eventual sale of its Saab unit - has given the firm a name as a turnaround specialist for troubled firms.

In the Gulf region, where restructuring is a relatively new phenomenon, there has been little activity. 'We do understand that the market has reservations with the term,' said director Sebastian Bretschneider.

'(But) there's an opportunity in adversity, restructuring is a positive thing. If you've got your house in order first, you'll have a strategic advantage when we come out of the downturn.'

Last June, Dubai's government hired the firm to restructure operations at developer Nakheel, setting a precedent and taking some of the sting out of appointing such advisors.

'One of those firms that we worked for made the first move and declared we're going to restructure,' Bretschneider said.

'We hope that this is a positive sign perceived by the private sector which says 'look if our sovereign owned entity does that, it can't be all that bad.''

Dubai unveiled a $9.5 billion rescue plan for Nakheel and its parent Dubai World last month and is in talks with a core panel of banks on the proposal.

Elsewhere in the Gulf region, AlixPartners has worked with companies in Saudi Arabia and Kuwait where it was hired by Gulf Bank - the lender which was rescued by the central bank in the wake of derivatives losses - in 2008.-Reuters