We have a website that displays information in a location based manner, i.e. it detects the IP of the visiting user and redirects him/her to an appropriate landing page; for e.g. a user coming from 'Egypt' will be redirected to http://www.mysite.com/egypt/cairo and a user visting from dubai will be redirected to http://www.mysite.com/uae/dubai, so on and so forth and we cater to multiple locations in the middle-east.

Now, we have been advised by our SEO consultant that we should put a 301 (permanent redirect) on http://www.mysite.com to point to http://www.mysite.com/ksa/riyadh

I would like to know the negative implications that this would have on Google indexing or otherwise, as I fundamentally disagree with this suggestion and believe that in a siutation like this a 302 redirect would be more appropriate.