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To reverse a decade of damaging total factor performance, regional labour market policy is shifting from easy task production to handling active labor force shifts. Federal governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up employees for emerging roles. Workplace-based knowing and apprenticeship-style pathways are ending up being more typical as companies integrate AI tools into everyday workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, regional governments are intensifying their focus on expenditure discipline and private capital mobilisation. Fiscal policy is rotating toward the monetisation of state-owned assets in logistics, utilities, and desalination to reroute funds towards higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on enhancing non-oil revenue frameworks.
PwC Middle East economic policy and strategy partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC governments are now concentrated on delivery. In 2026, the top priority is strengthening financial strength through more safe trade and investment relationships, efficient AI release, handled labor force shifts and disciplined fiscal policy in a more tough and fragmented worldwide 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 demand and renewed investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to surpass most global areas peers next year, with regional GDP forecast to grow by 4.4%. Throughout 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.
Although oil revenues will be under pressure in the 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 contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by industrial growth and policy reforms, consisting of eased foreign ownership rules that intend to promote more financial investment. The fiscal deficit is projected to expand to 5.6% of GDP next year amidst softer oil prices, while the current five-year lease freeze in Riyadh intends to ease 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. Tourism, trade and monetary services remain crucial growth motorists, supported by population development and continual 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 again in the 2nd half of 2026, complementing continuous financial investment in facilities, technology and worldwide 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 building varied, durable and worldwide competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Financial 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 gaining speed, supported by robust need and increasing financial investment, even as financial pressures increase.""The UAE continues to gain from solid domestic fundamentals, a sharp uplift in government costs and continual diversity efforts.
What differentiates 2026 from preceding years is not simply the velocity of technological change, though that acceleration is genuine, however rather a fundamental shift in how enterprises envisage their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, however this development masks a more profound change.
Rather, they ask whether these centers drive development, own profit-and-loss duty, and add to competitive distinction. In 2026, the most successful GCCs will act like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with international company results. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC design's development.
Today, we're assembling more than 3000 meetings in between investors and 119 Gulf-listed business with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, companies, exchanges, and policymakers to discuss what is changing in the region, and what comes next, consisting of the growth and continuous advancement of the Gulf's capital markets, and the region's growing function in worldwide networks of capital and trade.
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