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To reverse a decade of weakening overall aspect performance, local labour market policy is moving from basic task creation to managing active labor force shifts. Governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up workers for emerging roles. Workplace-based learning and apprenticeship-style paths are ending up being more common as firms incorporate AI tools into daily workflows.
With oil prices forecasted to typical $55-60 per barrel in 2026, local federal governments are intensifying their concentrate on expenditure discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned assets in logistics, energies, and desalination to redirect funds toward 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 reinforcing non-oil earnings structures.
PwC Middle East economic policy and strategy partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the priority is strengthening financial resilience through more protected trade and financial investment relationships, reliable AI implementation, managed workforce shifts and disciplined financial policy in a more challenging and fragmented global environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector efficiency, resilient domestic need and renewed investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most worldwide regions peers next year, with local GDP projection 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, enhancing credit conditions and increasing financial investment in innovation and AI-related infrastructure.
Oil earnings will be under pressure in the very first half of 2026, production is anticipated to increase again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a significant factor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by industrial growth and policy reforms, including eased foreign ownership rules that aim to stimulate additional financial investment. The financial deficit is projected to widen to 5.6% of GDP next year amidst softer oil rates, while the current five-year lease freeze in Riyadh intends to alleviate inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and financial services stay essential growth drivers, 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 expected to select up again in the second half of 2026, complementing ongoing financial investment in infrastructure, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has can be found in building diverse, resistant and worldwide competitive economies.
How Does Operational Excellence Vital for 2026 Growth?Scott 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 structures. Saudi non-oil activity is gaining rate, supported by robust demand and increasing financial investment, even as fiscal pressures increase.""The UAE continues to benefit from strong domestic basics, a sharp uplift in federal government spending and sustained diversification efforts.
How Does Operational Excellence Vital for 2026 Growth?What differentiates 2026 from preceding years is not simply the velocity of technological modification, though that velocity is real, but rather a basic shift in how business conceive of their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this development masks a more extensive change.
Rather, they ask whether these centers drive development, own profit-and-loss responsibility, and contribute to competitive differentiation. In 2026, the most successful GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with global service outcomes. This shift from execution to ownership represents perhaps the single most significant strategic recalibration in the GCC design's development.
This week, we're convening more than 3000 conferences between investors 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 financiers, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, including 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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