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To reverse a years of compromising total factor productivity, regional labour market policy is shifting from easy job development to handling active workforce transitions. Federal governments and companies 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 becoming more typical as firms integrate AI tools into daily workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, regional federal governments are intensifying their concentrate on expenditure discipline and private capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned possessions in logistics, energies, and desalination to redirect funds toward higher-impact financial investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus stays on reinforcing non-oil income structures.
PwC Middle East financial policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the concern is strengthening economic resilience through more protected trade and financial investment relationships, effective AI implementation, handled labor force transitions and disciplined fiscal policy in a more challenging 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, resilient domestic need and renewed financial investment momentum, according to the newest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most worldwide regions peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in innovation and AI-related facilities.
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 region's medium-term outlook, it specified. Saudi Arabia will stay a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by commercial expansion and policy reforms, consisting of relieved foreign ownership guidelines that intend to stimulate further financial investment. The fiscal deficit is projected to expand to 5.6% of GDP next year in the middle of softer oil costs, while the current five-year lease freeze in Riyadh aims to reduce 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 rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services remain essential development motorists, supported by population development and continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to choose up once again in the 2nd half of 2026, matching ongoing investment in facilities, innovation and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has actually can be found in structure varied, durable and internationally competitive economies.
The Strategic Combination of Shared Services Across the GCCScott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 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 benefit from strong domestic fundamentals, a sharp uplift in government spending and sustained diversity efforts.
The Strategic Combination of Shared Services Across the GCCWhat distinguishes 2026 from preceding years is not just the acceleration of technological change, though that velocity is genuine, but rather an essential shift in how enterprises envisage their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, but this development masks a more profound change.
Instead, they ask whether these centers drive innovation, own profit-and-loss duty, and contribute to competitive differentiation. In 2026, the most successful GCCs will act like internal startups, agile, cross-functional, insight-driven, and deeply aligned with worldwide service outcomes. This shift from execution to ownership represents perhaps the single most substantial strategic recalibration in the GCC design's development.
This week, we're convening more than 3000 meetings in between financiers 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 investors, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, including the growth and ongoing development of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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