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To reverse a years of deteriorating overall factor efficiency, regional labour market policy is shifting from easy task creation to handling active workforce shifts. Governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more common as companies integrate AI tools into day-to-day workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, local federal governments are heightening their concentrate on expense discipline and private capital mobilisation. Financial policy is rotating toward the monetisation of state-owned properties in logistics, utilities, and desalination to redirect 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 enhancing non-oil profits frameworks.
PwC Middle East economic policy and technique partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the priority is reinforcing economic resilience through more protected trade and financial investment relationships, efficient AI release, handled labor force transitions and disciplined financial policy in a more difficult and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial expansion in 2026, supported by strong private-sector efficiency, resilient domestic demand and restored investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to surpass most international regions peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in technology and AI-related facilities.
Oil revenues will be under pressure in the first half of 2026, production is anticipated to rise again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will stay a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by industrial growth and policy reforms, including alleviated foreign ownership guidelines that aim to stimulate more investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year amid softer oil prices, while the current five-year lease freeze in Riyadh aims to reduce inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and financial services remain crucial development motorists, supported by population development and sustained domestic need. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.

Oil production is anticipated to get again in the second half of 2026, matching continuous financial investment in infrastructure, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has been available in structure varied, resistant and internationally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is getting rate, supported by robust demand and increasing financial investment, even as financial pressures increase.""The UAE continues to gain from solid domestic basics, a sharp uplift in federal government costs and continual diversity efforts.
What identifies 2026 from preceding years is not merely the velocity of technological modification, though that acceleration is real, but rather a basic shift in how business envisage their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more profound improvement.
Rather, they ask whether these centers drive development, own profit-and-loss responsibility, and add to competitive distinction. In 2026, the most successful GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with international company outcomes. This shift from execution to ownership represents maybe the single most substantial tactical recalibration in the GCC model's advancement.
This week, we're assembling more than 3000 conferences in between financiers and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining investors, business, exchanges, and policymakers to discuss what is changing in the area, and what comes next, consisting of the growth and ongoing development of the Gulf's capital markets, and the region's growing role in worldwide networks of capital and trade.
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