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To reverse a years of deteriorating overall aspect performance, regional labour market policy is shifting from basic job creation to managing active workforce transitions. Governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up employees for emerging roles. Workplace-based learning and apprenticeship-style pathways are becoming more typical as companies integrate AI tools into day-to-day workflows.
With oil costs anticipated to average $55-60 per barrel in 2026, local federal governments are magnifying their focus on expenditure discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds towards higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus stays on reinforcing non-oil earnings frameworks.
PwC Middle East economic policy and technique partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the priority is reinforcing economic durability through more safe and secure trade and investment relationships, efficient AI release, handled labor force transitions and disciplined fiscal 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 efficiency, resistant domestic demand and renewed financial investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most worldwide regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is predicted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in innovation and AI-related facilities.
Oil revenues will be under pressure in the very first half of 2026, production is anticipated to rise again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Development will be supported by industrial expansion and policy reforms, consisting of alleviated foreign ownership guidelines that intend to promote more financial investment. The financial deficit is forecasted to widen to 5.6% of GDP next year amidst softer oil rates, while the current five-year lease freeze in Riyadh aims to ease inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise 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 stay essential growth chauffeurs, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.

Oil production is anticipated to get once again in the 2nd half of 2026, matching continuous investment in infrastructure, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has actually can be found in building varied, resistant 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 speed, supported by robust demand and rising investment, even as financial pressures increase.""The UAE continues to gain from strong domestic fundamentals, a sharp uplift in federal government spending and continual diversity efforts.
How to Secure a Leading Advantage in DubaiWhat distinguishes 2026 from preceding years is not just the acceleration of technological change, though that velocity is real, however rather a fundamental shift in how enterprises envisage their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, however this development masks a more extensive improvement.
Rather, they ask whether these centers drive development, own profit-and-loss duty, and contribute to competitive differentiation. In 2026, the most successful GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with international service results. This shift from execution to ownership represents maybe the single most significant 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 combining investors, companies, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the growth and continuous advancement of the Gulf's capital markets, and the region's growing role in worldwide networks of capital and trade.
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