City meet Al-Hilal in the Club World Cup round of 16 on Tuesday.
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“If they compete against Real Madrid how they competed it’s because they are a good team,” said Guardiola.
“The last two or three years the Saudi league has improved incredibly. Not just Al-Hilal or Al-Nassr, there are plenty of teams that have quality players.
“I see the squad and know when Joao (Cancelo) has the ball and his quality with the ball. Milinkovic-Savic and Neves are there.
“At the same time, the last two days I have been most concerned about looking at my team and being consistent.
“This is the main target. Being recognisable for ourselves and the future.”