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To reverse a decade of damaging total element efficiency, local labour market policy is moving from simple task production to managing active labor force shifts. Governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up workers for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more common as firms incorporate AI tools into day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, local governments are heightening their concentrate on expenditure discipline and personal capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned assets in logistics, energies, and desalination to redirect funds toward higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus remains on reinforcing non-oil profits structures.
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 reinforcing financial durability through more secure trade and financial investment relationships, reliable AI implementation, handled labor force shifts and disciplined fiscal policy in a more tough and fragmented international environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector performance, durable domestic need and renewed financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most international areas peers next year, with local GDP forecast to grow by 4.4%. Across 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 innovation and AI-related infrastructure.
Although oil incomes will be under pressure in the very first half of 2026, production is expected to rise again in the second half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will stay a significant factor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by industrial expansion and policy reforms, including alleviated foreign ownership rules that aim to stimulate further financial investment. The fiscal deficit is projected to widen to 5.6% of GDP next year amidst softer oil costs, while the recent five-year lease freeze in Riyadh aims to alleviate inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of performance, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services stay essential growth chauffeurs, 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 anticipated to choose up once again in the second half of 2026, complementing ongoing financial investment in infrastructure, technology and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has actually can be found in building varied, durable and globally competitive economies.
GCC Business News for Strategic PlanningScott Livermore, ICAEW Economic Advisor, and Chief Financial 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 acquiring speed, supported by robust need and rising financial investment, even as fiscal pressures increase.""The UAE continues to take advantage of strong domestic fundamentals, a sharp uplift in federal government spending and continual diversity efforts.
What distinguishes 2026 from preceding years is not merely the acceleration of technological change, though that acceleration is real, however rather a basic shift in how business develop of their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, however this growth masks a more profound transformation.
Rather, they ask whether these centers drive development, own profit-and-loss responsibility, and contribute to competitive differentiation. In 2026, the most effective GCCs will act like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide business outcomes. This shift from execution to ownership represents perhaps the single most substantial tactical recalibration in the GCC design's advancement.
Today, we're assembling more than 3000 meetings between investors and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're uniting financiers, companies, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing function in international networks of capital and trade.
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