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To reverse a years of compromising total element efficiency, regional labour market policy is shifting from basic task production to handling active labor force shifts. Federal governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up workers for emerging roles. Workplace-based learning and apprenticeship-style pathways are ending up being more typical as firms integrate AI tools into everyday workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, regional governments are magnifying their concentrate on expenditure discipline and personal capital mobilisation. Fiscal policy is pivoting towards the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds toward higher-impact investments. While borrowing through sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus remains on reinforcing non-oil profits frameworks.
PwC Middle East financial policy and technique partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now focused on shipment. In 2026, the priority is enhancing economic strength through more safe trade and investment relationships, reliable AI implementation, managed labor force transitions and disciplined fiscal policy in a more tough and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic expansion in 2026, supported by strong private-sector efficiency, durable domestic demand and renewed financial investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most global areas peers next year, with regional GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is predicted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising investment in innovation and AI-related facilities.
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 area's medium-term outlook, it specified. Saudi Arabia will remain a major contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by industrial expansion and policy reforms, consisting of eased foreign ownership guidelines that intend to stimulate additional financial investment. The fiscal deficit is projected to widen to 5.6% of GDP next year amidst softer oil prices, while the recent five-year rent freeze in Riyadh aims to reduce inflationary pressures, though it might 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 financial services remain essential development drivers, 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 expected to pick up once again in the second half of 2026, complementing ongoing investment in infrastructure, technology and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has been available in building diverse, resilient and globally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economist and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is gaining rate, supported by robust demand and rising financial investment, even as financial pressures increase.""The UAE continues to take advantage of solid domestic basics, a sharp uplift in government spending and sustained diversification efforts.
What differentiates 2026 from preceding years is not simply the acceleration of technological change, though that acceleration is real, 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 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 act like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with global business outcomes. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC design's development.
Today, we're convening more than 3000 conferences in between financiers and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're uniting investors, business, exchanges, and policymakers to discuss what is changing in the area, and what comes next, consisting of the growth and ongoing development of the Gulf's capital markets, and the region's growing role in international networks of capital and trade.
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