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To reverse a decade of damaging total element efficiency, local labour market policy is shifting from simple job development to handling active workforce shifts. Federal governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip employees for emerging roles. Workplace-based learning and apprenticeship-style paths are ending up being more common as firms integrate AI tools into daily workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, local governments are heightening their focus on expense discipline and personal capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds toward higher-impact financial investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to fund tactical deficits, the focus remains on strengthening non-oil earnings structures.
PwC Middle East financial policy and method partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the concern is enhancing economic durability through more safe trade and financial investment relationships, effective AI implementation, managed labor force transitions and disciplined fiscal policy in a more difficult and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial expansion 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 expected to exceed most global regions peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising financial investment in technology and AI-related facilities.
Although oil incomes will be under pressure in the first half of 2026, production is anticipated to increase once again in the second half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will stay a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Development will be supported by commercial expansion and policy reforms, consisting of eased foreign ownership guidelines that intend to promote more financial investment. The fiscal deficit is forecasted to broaden to 5.6% of GDP next year amidst softer oil costs, while the recent five-year lease freeze in Riyadh aims to ease inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also positioned 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 crucial development drivers, supported by population development and continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to get once again in the 2nd half of 2026, complementing continuous investment in infrastructure, technology and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has been available in building diverse, resistant and globally competitive economies.
Bridging Strategy With Business Performance Across the Middle EastScott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is gaining pace, supported by robust demand and rising financial investment, even as fiscal pressures increase.""The UAE continues to gain from solid domestic principles, a sharp uplift in government spending and sustained diversity efforts.
Advanced Planning for Regional LeadershipWhat identifies 2026 from preceding years is not merely the acceleration of technological modification, though that velocity is genuine, however rather a fundamental shift in how enterprises conceive of their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more extensive change.
Rather, they ask whether these centers drive innovation, own profit-and-loss responsibility, and add to competitive distinction. In 2026, the most successful GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply aligned with global organization outcomes. This shift from execution to ownership represents perhaps the single most considerable tactical recalibration in the GCC design's development.
This week, we're convening more than 3000 meetings 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 changing in the region, and what comes next, consisting of the expansion and ongoing advancement of the Gulf's capital markets, and the area's growing function in global networks of capital and trade.
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