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To reverse a decade of compromising total element performance, regional labour market policy is shifting from simple task 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 workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are ending up being more common as firms integrate AI tools into day-to-day workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local federal governments are heightening their focus on expenditure discipline and private capital mobilisation. Fiscal policy is rotating toward the monetisation of state-owned possessions in logistics, energies, and desalination to reroute funds towards higher-impact financial investments. While loaning through sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus remains on reinforcing non-oil income frameworks.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the priority is reinforcing financial strength through more secure trade and investment relationships, reliable AI implementation, handled workforce shifts and disciplined financial policy in a more tough and fragmented global environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector performance, durable domestic need and restored financial investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to exceed most global areas peers next year, with local GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing investment in technology and AI-related facilities.
Although oil incomes will be under pressure in the very first half of 2026, production is expected to increase again in the second half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will stay a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Development will be supported by industrial growth and policy reforms, consisting of alleviated foreign ownership rules that intend to promote additional financial investment. The financial deficit is predicted to widen to 5.6% of GDP next year in the middle of softer oil prices, while the recent five-year lease freeze in Riyadh aims to relieve inflationary pressures, though it may constrain future real estate 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. Tourist, trade and financial services remain crucial growth chauffeurs, supported by population development and sustained domestic need. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.

Oil production is expected to get once again in the 2nd half of 2026, complementing ongoing financial investment in infrastructure, innovation and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has come in building diverse, resistant and worldwide competitive economies.
Achieving Process Excellence in the Industrial LandscapeScott Livermore, ICAEW Economic Advisor, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is getting rate, supported by robust need and increasing financial investment, even as financial pressures increase.""The UAE continues to gain from strong domestic fundamentals, a sharp uplift in government spending and continual diversification efforts.
Achieving Process Excellence in the Industrial LandscapeWhat identifies 2026 from preceding years is not merely the velocity of technological modification, though that velocity is genuine, but rather a basic shift in how business develop of their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, but this growth masks a more extensive change.
Instead, they ask whether these centers drive innovation, own profit-and-loss duty, and contribute to competitive differentiation. In 2026, the most effective GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with international business outcomes. This shift from execution to ownership represents perhaps the single most significant strategic recalibration in the GCC model's advancement.
This week, we're convening more than 3000 conferences in between investors 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, companies, exchanges, and policymakers to discuss what is changing in the region, and what follows, including the expansion 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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