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To reverse a decade of deteriorating overall element performance, regional labour market policy is moving from basic task development to handling active workforce shifts. Governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip employees for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more common as companies incorporate AI tools into everyday workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, regional federal governments are heightening their concentrate on expense discipline and private capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned assets in logistics, energies, and desalination to reroute funds towards higher-impact financial investments. While loaning by means of sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on reinforcing non-oil revenue frameworks.
PwC Middle East economic policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the concern is reinforcing economic strength through more safe and secure trade and financial investment relationships, reliable AI release, handled workforce transitions and disciplined fiscal policy in a more tough and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector efficiency, durable domestic need and restored investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most worldwide regions peers next year, with regional GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing investment in technology and AI-related infrastructure.
Oil earnings will be under pressure in the first half of 2026, production is anticipated to increase again in the second half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a significant factor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Development will be supported by industrial expansion and policy reforms, consisting of reduced foreign ownership rules that intend to promote further financial investment. The fiscal deficit is projected to widen to 5.6% of GDP next year amid softer oil prices, while the current five-year lease freeze in Riyadh aims to ease inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of performance, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services stay crucial growth motorists, supported by population growth and sustained domestic need. 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 again in the 2nd half of 2026, matching continuous investment in infrastructure, innovation and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has can be found in building varied, resistant and internationally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Financial Expert 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 speed, supported by robust need and increasing investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic fundamentals, a sharp uplift in federal government spending and continual diversity efforts.
What distinguishes 2026 from preceding years is not just the velocity of technological modification, though that velocity is genuine, but rather an essential shift in how business envisage their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, but 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 behave like internal startups, agile, cross-functional, insight-driven, and deeply aligned with global business outcomes. This shift from execution to ownership represents maybe the single most considerable strategic 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 investors, 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 role in international networks of capital and trade.
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