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To reverse a years of damaging overall factor performance, local labour market policy is moving from simple task creation to handling active workforce transitions. Governments and companies are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip employees for emerging functions. Workplace-based learning and apprenticeship-style paths are ending up being more typical as companies incorporate AI tools into daily workflows.
With oil prices forecasted to typical $55-60 per barrel in 2026, local governments are magnifying their focus on expenditure discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds towards higher-impact financial investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus remains on strengthening non-oil revenue structures.
PwC Middle East financial policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the concern is enhancing financial durability through more safe trade and financial investment relationships, efficient AI implementation, handled workforce shifts and disciplined financial policy in a more tough and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial expansion in 2026, supported by strong private-sector performance, resistant domestic need and renewed financial investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most worldwide areas peers next year, with regional 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, improving credit conditions and rising financial investment in technology and AI-related infrastructure.
Oil revenues will be under pressure in the first half of 2026, production is expected to rise again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will remain a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including relieved foreign ownership rules that aim to stimulate further investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year amid softer oil costs, while the current five-year rent freeze in Riyadh intends to alleviate inflationary pressures, though it might constrain future real estate 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 financial services remain key growth motorists, supported by population growth and continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.

Oil production is anticipated to select up again in the second half of 2026, matching ongoing investment in infrastructure, innovation and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has actually come in structure diverse, resistant and globally competitive economies.
Why Is Business Excellence Vital for 2026 Expansion?Scott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is acquiring rate, supported by robust demand and increasing investment, even as fiscal pressures increase.""The UAE continues to gain from solid domestic basics, a sharp uplift in government spending and sustained diversity efforts.
What identifies 2026 from preceding years is not just the acceleration of technological modification, though that acceleration is genuine, but rather a fundamental shift in how business envisage their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, however this development masks a more profound change.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most effective GCCs will act like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with international company results. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC model's advancement.
This week, we're assembling more than 3000 conferences 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 uniting financiers, 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 worldwide networks of capital and trade.
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