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To reverse a years of deteriorating overall element performance, regional labour market policy is moving from simple job development to managing active labor force shifts. Federal governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up workers for emerging roles. Workplace-based learning and apprenticeship-style pathways are becoming more common as companies integrate AI tools into everyday workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, local federal governments are heightening their concentrate on expense discipline and personal capital mobilisation. Financial policy is pivoting towards the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds towards higher-impact financial investments. While borrowing by means of sukuk and sustainability-linked bonds is expected to increase to money strategic deficits, the focus remains on enhancing non-oil income structures.
PwC Middle East financial policy and technique partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now focused on shipment. In 2026, the priority is enhancing economic durability through more secure trade and investment relationships, efficient AI implementation, managed workforce shifts and disciplined financial policy in a more challenging and fragmented international environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's financial growth in 2026, supported by strong private-sector performance, durable domestic need and restored investment momentum, according to the 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 forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising investment in innovation and AI-related infrastructure.
Oil earnings will be under pressure in the very first half of 2026, production is anticipated to rise again in the 2nd half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will remain a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Development will be supported by commercial expansion and policy reforms, including alleviated foreign ownership guidelines that aim to promote more financial investment. The financial deficit is predicted to broaden to 5.6% of GDP next year amid softer oil rates, while the current five-year rent freeze in Riyadh aims to ease inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and monetary services stay key growth motorists, supported by population growth and continual domestic demand. 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, complementing continuous investment in facilities, innovation and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has actually can be found in structure varied, durable and worldwide competitive economies.
Corporate Strategy for Regional ExcellenceScott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is acquiring rate, supported by robust demand and rising financial investment, even as fiscal pressures increase.""The UAE continues to benefit from strong domestic principles, a sharp uplift in government costs and continual diversity efforts.
Corporate Strategy for Regional ExcellenceWhat differentiates 2026 from preceding years is not just the acceleration of technological modification, though that acceleration is genuine, but rather a basic shift in how enterprises envisage their GCCs' purpose. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more extensive improvement.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most effective GCCs will act like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with worldwide organization results. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC design's advancement.
This week, we're assembling more than 3000 meetings in between financiers and 119 Gulf-listed business with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, including the expansion and continuous advancement of the Gulf's capital markets, and the area's growing function in global networks of capital and trade.
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