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To reverse a years of weakening overall factor productivity, local labour market policy is moving from basic job production to handling active workforce shifts. 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 knowing and apprenticeship-style pathways are becoming more common as companies incorporate AI tools into everyday workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, local governments are intensifying their concentrate on expense discipline and private capital mobilisation. Financial policy is rotating toward the monetisation of state-owned assets in logistics, energies, and desalination to redirect funds toward higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is anticipated to increase to fund tactical deficits, the focus remains on reinforcing non-oil revenue frameworks.
PwC Middle East financial policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now concentrated on delivery. In 2026, the priority is reinforcing economic durability through more protected trade and investment relationships, efficient AI deployment, handled labor force shifts and disciplined financial policy in a more tough and fragmented international 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 investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outperform most worldwide regions peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing investment in technology and AI-related facilities.
Although oil earnings will be under pressure in the first half of 2026, production is anticipated to rise again in the second half of 2026, supporting the area's medium-term outlook, it mentioned. 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 expansion and policy reforms, including reduced foreign ownership guidelines that intend to stimulate more investment. The fiscal deficit is predicted to broaden to 5.6% of GDP next year in the middle of softer oil rates, while the current five-year rent freeze in Riyadh aims to relieve inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of efficiency, with GDP projection to rise 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 continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is expected to get once again in the second half of 2026, matching continuous investment in infrastructure, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has actually come in structure varied, resilient and worldwide competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is gaining pace, supported by robust need and increasing investment, even as financial pressures increase.""The UAE continues to gain from solid domestic principles, a sharp uplift in government costs and continual diversification efforts.
Actionable Tips for Mastering the Regional LandscapeWhat distinguishes 2026 from preceding years is not simply the acceleration of technological modification, though that velocity is genuine, but rather a fundamental shift in how enterprises envisage their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this development masks a more extensive change.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide service outcomes. This shift from execution to ownership represents maybe the single most significant strategic recalibration in the GCC model's advancement.
This week, we're convening more than 3000 conferences between investors and 119 Gulf-listed business 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 area, and what follows, consisting of the expansion and continuous advancement of the Gulf's capital markets, and the region's growing function in international networks of capital and trade.
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