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To reverse a decade of damaging overall element productivity, local labour market policy is moving from easy task production to managing active labor force shifts. Federal governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip workers for emerging roles. Workplace-based knowing and apprenticeship-style pathways are becoming more typical as firms integrate AI tools into everyday workflows.
With oil costs anticipated to average $55-60 per barrel in 2026, regional governments are magnifying their concentrate on expenditure discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds toward higher-impact investments. While loaning via sukuk and sustainability-linked bonds is anticipated to increase to fund tactical deficits, the focus remains on reinforcing non-oil earnings frameworks.
PwC Middle East economic policy and strategy partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on delivery. In 2026, the priority is reinforcing financial durability through more safe trade and financial investment relationships, efficient AI implementation, managed workforce shifts and disciplined fiscal policy in a more challenging 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 efficiency, resistant domestic need and renewed investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most worldwide regions peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing financial investment in innovation and AI-related infrastructure.
Although oil profits will be under pressure in the first half of 2026, production is anticipated to rise again in the second half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will stay a significant factor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Development will be supported by commercial expansion and policy reforms, including relieved foreign ownership guidelines that aim to promote further financial investment. The fiscal deficit is projected to expand to 5.6% of GDP next year amid softer oil prices, while the recent five-year lease freeze in Riyadh intends to ease inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of performance, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services remain crucial development chauffeurs, supported by population growth and continual domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.

Oil production is anticipated to get again in the 2nd half of 2026, complementing continuous financial investment in facilities, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has can be found in structure diverse, resilient and globally competitive economies.
Key GCC Market Research Reports for 2026Scott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is getting speed, supported by robust demand and rising investment, even as fiscal pressures increase.""The UAE continues to benefit from solid domestic principles, a sharp uplift in government spending and continual diversity efforts.
What identifies 2026 from preceding years is not just the velocity of technological change, though that acceleration is genuine, however rather a basic shift in how enterprises envisage their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more extensive transformation.
Instead, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most effective GCCs will act like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with international business outcomes. This shift from execution to ownership represents possibly the single most substantial tactical recalibration in the GCC model's evolution.
Today, we're assembling more than 3000 meetings 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 combining investors, companies, exchanges, and policymakers to discuss what is changing in the region, and what comes next, consisting of the growth and ongoing development of the Gulf's capital markets, and the area's growing role in international networks of capital and trade.
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