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To reverse a years of deteriorating total element productivity, local labour market policy is moving from simple job creation to handling active workforce transitions. Federal governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more typical as companies incorporate AI tools into day-to-day workflows.
With oil rates anticipated to typical $55-60 per barrel in 2026, local governments are heightening their concentrate on expense discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds toward higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus stays on reinforcing non-oil revenue structures.
PwC Middle East financial policy and method partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the priority is reinforcing economic durability through more safe trade and financial investment relationships, reliable AI implementation, managed labor force transitions and disciplined fiscal policy in a more difficult and fragmented global environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector performance, 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 global regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing financial investment in technology and AI-related facilities.
Although oil earnings will be under pressure in the very first half of 2026, production is anticipated to rise again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will stay a significant factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Development will be supported by industrial expansion and policy reforms, consisting of relieved foreign ownership rules that aim to promote additional financial investment. The financial deficit is predicted to expand to 5.6% of GDP next year in the middle of softer oil rates, while the recent five-year lease freeze in Riyadh aims to ease inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services remain 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 anticipated to choose up once again in the second half of 2026, matching continuous investment in facilities, technology 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 varied, resilient and globally competitive economies.
How to Successfully Deploy Advanced Strategies for 2026Scott Livermore, ICAEW Economic Consultant, and Chief Economist and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is getting pace, supported by robust demand and increasing financial investment, even as financial pressures increase.""The UAE continues to benefit from solid domestic fundamentals, a sharp uplift in federal government spending and continual diversity efforts.
What differentiates 2026 from preceding years is not simply the acceleration of technological modification, though that acceleration is real, but rather a basic shift in how business envisage their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this development masks a more profound 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 act like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with global company outcomes. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC design's advancement.
This week, we're assembling more than 3000 conferences between investors and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together financiers, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, consisting of the expansion and continuous advancement of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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