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To reverse a decade of compromising overall factor efficiency, local labour market policy is shifting from easy task creation to handling active labor force shifts. 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 paths are ending up being more typical as firms integrate AI tools into day-to-day workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local governments are heightening their focus on expenditure discipline and private capital mobilisation. Financial policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds towards higher-impact investments. While borrowing through sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus remains on enhancing non-oil profits 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 concentrated on shipment. In 2026, the concern is enhancing financial resilience through more safe trade and financial investment relationships, efficient AI deployment, managed labor force shifts and disciplined financial policy in a more difficult 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, resilient domestic demand and restored investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most worldwide areas peers next year, with regional 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, enhancing credit conditions and rising financial investment in innovation and AI-related facilities.
Although oil incomes will be under pressure in the first half of 2026, production is expected to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a significant factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including alleviated foreign ownership guidelines that intend to stimulate additional financial investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year amidst softer oil costs, while the current five-year lease freeze in Riyadh intends to alleviate inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of performance, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and monetary services stay essential development motorists, supported by population growth and continual 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 pick up again in the 2nd half of 2026, matching ongoing financial investment in facilities, innovation and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has actually been available in structure diverse, resilient and internationally competitive economies.
How to Pivot Your Organization Amidst Qatar's Legal ReformsScott Livermore, ICAEW Economic Advisor, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is gaining speed, supported by robust need and increasing financial investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic principles, a sharp uplift in government costs and continual diversification efforts.
What distinguishes 2026 from preceding years is not just the acceleration of technological change, though that velocity is real, but rather a fundamental 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 extensive transformation.
Instead, they ask whether these centers drive development, own profit-and-loss duty, and add to competitive distinction. In 2026, the most effective GCCs will act like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with international company results. This shift from execution to ownership represents maybe the single most significant strategic recalibration in the GCC design's advancement.
This week, we're convening more than 3000 conferences 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 bringing together financiers, business, exchanges, and policymakers to discuss what is changing in the area, and what follows, including the expansion and continuous development of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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