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To reverse a years of deteriorating overall element performance, regional labour market policy is shifting from basic job development to handling active workforce transitions. Federal governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up workers for emerging functions. Workplace-based learning and apprenticeship-style pathways are becoming more common as companies incorporate AI tools into everyday workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, local federal governments are magnifying their focus on expenditure discipline and personal capital mobilisation. Financial policy is rotating toward the monetisation of state-owned assets in logistics, energies, and desalination to redirect funds toward higher-impact financial investments. While borrowing via sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on reinforcing non-oil income frameworks.
PwC Middle East economic policy and method partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the top priority is reinforcing economic strength through more safe and secure trade and investment relationships, reliable AI implementation, managed workforce transitions and disciplined financial policy in a more challenging and fragmented global environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's economic expansion in 2026, supported by strong private-sector performance, resistant domestic demand and restored investment momentum, according to the newest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outperform most global regions peers next year, with regional GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in innovation and AI-related infrastructure.
Oil revenues 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 region'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.

Development will be supported by commercial expansion and policy reforms, including eased foreign ownership guidelines that intend to stimulate further investment. The financial deficit is predicted to widen to 5.6% of GDP next year amidst softer oil rates, while the recent five-year rent freeze in Riyadh aims to ease inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise 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 crucial growth drivers, supported by population development and sustained 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 get again in the second half of 2026, matching continuous investment in infrastructure, innovation and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has can be found in building diverse, resilient and globally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is getting pace, supported by robust demand and increasing investment, even as financial pressures increase.""The UAE continues to gain from solid domestic principles, a sharp uplift in government spending and sustained diversification efforts.
Predicting the Next Middle East Business LandscapeWhat identifies 2026 from preceding years is not merely the velocity of technological modification, though that velocity is genuine, however rather a fundamental shift in how business develop of their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this development masks a more profound improvement.
Rather, they ask whether these centers drive development, own profit-and-loss responsibility, and contribute to competitive distinction. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with international organization results. This shift from execution to ownership represents possibly the single most considerable strategic recalibration in the GCC model's development.
Today, we're convening more than 3000 meetings in between financiers and 119 Gulf-listed business with a combined worth 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 altering in the region, and what comes next, consisting of the expansion and ongoing advancement of the Gulf's capital markets, and the area's growing function in worldwide networks of capital and trade.
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