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To reverse a decade of weakening total factor efficiency, regional labour market policy is moving from simple job development to managing active labor force shifts. Federal governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip employees for emerging functions. Workplace-based learning and apprenticeship-style paths are ending up being more common as firms incorporate AI tools into day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, regional governments are magnifying their focus on expense discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds toward higher-impact financial investments. While loaning through sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on reinforcing non-oil revenue frameworks.
PwC Middle East economic policy and strategy partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the top priority is enhancing economic strength through more safe and secure trade and financial investment relationships, effective AI release, handled labor force transitions and disciplined financial policy in a more tough and fragmented worldwide environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector efficiency, resistant domestic need and restored financial investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outperform most worldwide areas peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing investment in innovation and AI-related facilities.
Although oil earnings will be under pressure in the first half of 2026, production is anticipated to rise once again in the second half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will remain a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Growth will be supported by industrial growth and policy reforms, including reduced foreign ownership guidelines that intend to promote additional financial investment. The financial deficit is forecasted to expand to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year rent freeze in Riyadh aims to relieve 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 forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services remain crucial development drivers, 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 anticipated to get once again in the second half of 2026, matching 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 can be found in building varied, resilient and internationally competitive economies.
Why Digital Shift Does Drive Growth?Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert 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 getting pace, supported by robust need and increasing investment, even as financial pressures increase.""The UAE continues to gain from solid domestic principles, a sharp uplift in government costs and sustained diversification efforts.
What distinguishes 2026 from preceding years is not merely the acceleration of technological change, though that acceleration is genuine, however rather a basic shift in how enterprises envisage their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, but this growth masks a more profound transformation.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most successful GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with worldwide business results. This shift from execution to ownership represents perhaps the single most significant tactical recalibration in the GCC design's advancement.
This week, we're convening more than 3000 conferences in 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 investors, business, exchanges, and policymakers to discuss what is changing in the area, and what follows, including the expansion and continuous advancement of the Gulf's capital markets, and the region's growing function in worldwide networks of capital and trade.
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