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To reverse a years of compromising total element efficiency, regional labour market policy is shifting from basic job creation to handling active labor force shifts. Federal governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip workers for emerging functions. Workplace-based knowing and apprenticeship-style paths are becoming more typical as companies incorporate AI tools into daily workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, local federal governments are intensifying their concentrate on expenditure discipline and personal capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, energies, and desalination to reroute funds toward higher-impact financial investments. While borrowing by means of sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on strengthening non-oil profits structures.
PwC Middle East economic policy and technique partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on shipment. In 2026, the priority is reinforcing economic durability through more secure trade and financial investment relationships, efficient AI release, managed workforce shifts 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 investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to exceed most international regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in innovation and AI-related facilities.
Although oil earnings will be under pressure in the very first half of 2026, production is expected to rise once again in the second half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will remain a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Growth will be supported by industrial growth and policy reforms, including relieved foreign ownership guidelines that aim to stimulate additional investment. The fiscal deficit is forecasted to widen to 5.6% of GDP next year amid softer oil prices, while the current five-year rent freeze in Riyadh intends to relieve inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of efficiency, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and monetary services stay essential growth motorists, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.
Oil production is expected to pick up once again in the 2nd half of 2026, complementing continuous financial investment in facilities, innovation and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has come in structure varied, resilient and globally competitive economies.
Key Middle East Market Research Insights for 2026Scott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Managing 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 fiscal pressures increase.""The UAE continues to take advantage of strong domestic fundamentals, a sharp uplift in federal government spending and continual diversity efforts.
Key Middle East Market Research Insights for 2026What differentiates 2026 from preceding years is not just the velocity of technological modification, though that acceleration is genuine, but rather a fundamental shift in how business conceive of their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, but this development masks a more extensive transformation.
Instead, they ask whether these centers drive innovation, own profit-and-loss duty, and contribute to competitive distinction. In 2026, the most effective GCCs will act like internal start-ups, nimble, cross-functional, insight-driven, and deeply aligned with international business outcomes. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC design's evolution.
This week, we're convening more than 3000 conferences between financiers and 119 Gulf-listed business with a combined value 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 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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