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To reverse a years of compromising total element productivity, local labour market policy is shifting from simple job development to handling active labor force transitions. Governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip employees for emerging roles. Workplace-based learning and apprenticeship-style paths are ending up being more common as firms integrate AI tools into everyday workflows.
With oil prices forecasted to average $55-60 per barrel in 2026, regional governments are magnifying their focus on expenditure discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned assets in logistics, energies, and desalination to reroute funds towards higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus stays on reinforcing non-oil revenue structures.
PwC Middle East economic policy and technique partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the priority is strengthening economic resilience through more protected trade and investment relationships, efficient AI release, handled workforce shifts and disciplined fiscal policy in a more difficult and fragmented international environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's financial expansion in 2026, supported by strong private-sector performance, durable domestic demand and restored financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most worldwide regions peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing financial investment in innovation and AI-related facilities.
Although oil profits will be under pressure in the very first half of 2026, production is anticipated to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by industrial growth and policy reforms, including eased foreign ownership guidelines that intend to stimulate additional investment. The fiscal deficit is projected to expand to 5.6% of GDP next year in the middle of softer oil prices, while the recent five-year rent freeze in Riyadh intends to reduce inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of efficiency, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services stay crucial growth drivers, supported by population growth and continual domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.

Oil production is expected to select up once again in the second half of 2026, matching ongoing financial investment in facilities, innovation and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has actually can be found in structure varied, durable and internationally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is acquiring rate, supported by robust demand and rising investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic fundamentals, a sharp uplift in government spending and sustained diversity efforts.
What differentiates 2026 from preceding years is not simply the acceleration of technological change, though that velocity is real, but rather a basic shift in how business develop of their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this development masks a more extensive transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss duty, and add to competitive distinction. In 2026, the most effective GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide business results. This shift from execution to ownership represents perhaps the single most significant strategic recalibration in the GCC design's evolution.
Today, we're assembling more than 3000 conferences in between financiers and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together investors, companies, exchanges, and policymakers to discuss what is altering in the region, and what follows, including the expansion and continuous advancement of the Gulf's capital markets, and the region's growing role in global networks of capital and trade.
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