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To reverse a decade of damaging total aspect productivity, local labour market policy is moving from simple job creation to managing active workforce transitions. Federal governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip employees for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more typical as companies integrate AI tools into daily workflows.
With oil costs anticipated to typical $55-60 per barrel in 2026, regional governments are magnifying their concentrate on expense discipline and personal capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned possessions in logistics, utilities, and desalination to reroute funds towards higher-impact investments. While borrowing via sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus stays on enhancing non-oil profits frameworks.
PwC Middle East economic policy and technique partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on delivery. In 2026, the concern is reinforcing economic resilience through more secure trade and investment relationships, effective AI deployment, handled workforce shifts and disciplined fiscal policy in a more tough and fragmented worldwide environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's financial expansion in 2026, supported by strong private-sector performance, resistant domestic demand and restored investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most worldwide regions peers next year, with local GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in technology and AI-related infrastructure.
Oil incomes will be under pressure in the first half of 2026, production is anticipated to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will remain 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 relieved foreign ownership guidelines that aim to promote more investment. The fiscal deficit is forecasted to expand to 5.6% of GDP next year in the middle of softer oil prices, while the recent five-year rent freeze in Riyadh aims to relieve inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and monetary services stay essential 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 once again in the second half of 2026, matching ongoing financial investment in facilities, innovation and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has can be found in building varied, resilient and worldwide competitive economies.
Methods for Optimising Regional Operations in 2026Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is gaining speed, supported by robust need and rising financial investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic basics, a sharp uplift in government spending and continual diversity efforts.
What identifies 2026 from preceding years is not merely the acceleration of technological change, though that velocity is real, but rather a fundamental shift in how business conceive of their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this development masks a more extensive transformation.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and add to competitive differentiation. In 2026, the most successful GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply aligned with international service results. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC design's evolution.
Today, we're convening more than 3000 conferences 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 investors, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, consisting of the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing function in worldwide networks of capital and trade.
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