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To reverse a years of weakening total aspect performance, local labour market policy is shifting from simple job development to managing active workforce shifts. Federal governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up employees 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 forecasted to average $55-60 per barrel in 2026, regional governments are heightening their focus on expenditure discipline and personal capital mobilisation. Fiscal policy is pivoting towards the monetisation of state-owned properties in logistics, energies, and desalination to reroute funds towards higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to fund tactical deficits, the focus stays on enhancing non-oil revenue frameworks.
PwC Middle East financial policy and technique partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the priority is reinforcing financial durability through more safe and secure trade and investment relationships, effective AI implementation, managed workforce shifts and disciplined financial policy in a more tough and fragmented global environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's financial expansion in 2026, supported by strong private-sector efficiency, durable domestic demand and restored financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most international areas peers next year, with regional GDP forecast 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 increasing investment in innovation and AI-related infrastructure.
Although oil profits will be under pressure in the first half of 2026, production is expected to increase again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will remain a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Development will be supported by industrial expansion and policy reforms, consisting of alleviated foreign ownership guidelines that aim to stimulate further financial investment. The financial deficit is projected to broaden to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year rent freeze in Riyadh intends to alleviate inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP projection 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 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 choose up once again in the 2nd half of 2026, complementing ongoing financial investment in facilities, technology and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually can be found in building varied, resilient and worldwide competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Economist and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is getting speed, supported by robust need and increasing financial investment, even as fiscal pressures increase.""The UAE continues to benefit from solid domestic fundamentals, a sharp uplift in federal government spending and continual diversity efforts.
What identifies 2026 from preceding years is not just the velocity of technological modification, though that acceleration is real, 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, however this growth masks a more profound improvement.
Rather, they ask whether these centers drive development, own profit-and-loss responsibility, and add to competitive distinction. In 2026, the most effective GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with international company results. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC model's evolution.
This week, we're convening more than 3000 meetings in between investors and 119 Gulf-listed business 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 region, and what comes next, including the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing role in international networks of capital and trade.
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