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To reverse a decade of compromising total aspect efficiency, regional labour market policy is shifting from simple job creation to managing active workforce transitions. Governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are ending up being more typical as firms integrate AI tools into day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, local governments are heightening their focus on expense discipline and personal capital mobilisation. Financial policy is rotating toward the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds towards higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus stays on enhancing non-oil revenue structures.
PwC Middle East financial policy and method partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the top priority is strengthening economic durability through more safe trade and investment relationships, efficient AI release, handled 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 growth in 2026, supported by strong private-sector efficiency, durable domestic need and restored investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outperform most international regions peers next year, with local GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising financial investment in technology and AI-related facilities.
Oil earnings will be under pressure in the first half of 2026, production is anticipated to increase again in the 2nd half of 2026, supporting the region's medium-term outlook, it specified. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial growth and policy reforms, including reduced foreign ownership rules that aim to stimulate additional investment. The financial deficit is projected to expand to 5.6% of GDP next year amidst softer oil rates, while the current five-year rent freeze in Riyadh aims to alleviate inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise positioned 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 remain crucial development motorists, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to select up once again in the second half of 2026, complementing continuous investment in infrastructure, innovation and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has been available in building diverse, resilient and worldwide competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust need and increasing financial investment, even as fiscal pressures increase.""The UAE continues to benefit from strong domestic principles, a sharp uplift in federal government costs and sustained diversity efforts.
Improving the Gulf Back Workplace Through Digital Shared ProvidersWhat differentiates 2026 from preceding years is not just the velocity of technological change, though that acceleration is real, however rather an essential shift in how enterprises envisage their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more profound transformation.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most effective GCCs will act like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with international company results. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC design's evolution.
This week, we're assembling more than 3000 meetings in between financiers and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, companies, exchanges, and policymakers to discuss what is changing in the area, and what follows, consisting of the growth and ongoing advancement of the Gulf's capital markets, and the area's growing function in international networks of capital and trade.
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