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To reverse a decade of damaging total element efficiency, local labour market policy is shifting from simple task production to managing active workforce shifts. Governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip workers for emerging functions. Workplace-based knowing and apprenticeship-style paths are ending up being more common as firms integrate AI tools into day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, regional federal governments are heightening 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 via sukuk and sustainability-linked bonds is expected to increase to money strategic deficits, the focus stays on enhancing non-oil revenue frameworks.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on delivery. In 2026, the priority is strengthening economic strength through more protected trade and investment relationships, effective AI deployment, handled workforce transitions and disciplined financial policy in a more challenging and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's financial expansion in 2026, supported by strong private-sector performance, resistant domestic demand and renewed 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 technology and AI-related infrastructure.
Although oil incomes will be under pressure in the very first half of 2026, production is anticipated to increase once again in the 2nd half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will stay a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by industrial growth and policy reforms, including relieved foreign ownership rules that aim to stimulate further financial investment. The financial deficit is projected to expand to 5.6% of GDP next year amidst softer oil rates, while the current five-year lease freeze in Riyadh aims to alleviate inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of efficiency, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and financial services stay crucial development motorists, supported by population development and continual domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.
Oil production is expected to choose up again in the 2nd half of 2026, complementing ongoing investment in facilities, innovation and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has actually can be found in building varied, resilient and internationally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is acquiring rate, supported by robust need and rising investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic principles, a sharp uplift in federal government costs and continual diversity efforts.
What identifies 2026 from preceding years is not just the acceleration of technological modification, though that velocity is genuine, but rather an essential shift in how enterprises conceive of their GCCs' purpose. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more extensive improvement.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and add to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with global business results. This shift from execution to ownership represents perhaps the single most significant tactical recalibration in the GCC model's advancement.
Today, we're assembling more than 3000 meetings between investors and 119 Gulf-listed business with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together investors, 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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