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To reverse a years of deteriorating total element productivity, regional labour market policy is moving from basic job development to managing active workforce transitions. Governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip workers for emerging roles. Workplace-based learning and apprenticeship-style pathways are ending up being more common as companies incorporate AI tools into day-to-day workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, regional federal governments are intensifying their focus on expense discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds towards higher-impact investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on strengthening non-oil earnings frameworks.
PwC Middle East economic policy and strategy 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 durability through more safe trade and financial investment relationships, efficient AI deployment, managed labor force 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 economic expansion in 2026, supported by strong private-sector performance, resistant domestic need and restored investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to exceed most international areas peers next year, with regional 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, improving credit conditions and rising investment in innovation and AI-related infrastructure.
Oil incomes will be under pressure in the very first half of 2026, production is anticipated to increase again in the second half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will remain a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Development will be supported by commercial expansion and policy reforms, consisting of eased foreign ownership guidelines that intend to stimulate additional investment. The fiscal deficit is predicted to broaden to 5.6% of GDP next year amidst softer oil prices, while the current five-year rent freeze in Riyadh intends to ease 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 rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay crucial growth drivers, supported by population development and continual domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.

Oil production is expected to choose up 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, stated: "This quarter's outlook reinforces how far the GCC has actually come in structure varied, durable and globally competitive economies.
Essential GCC Market Analysis Insights for 2026Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is acquiring rate, supported by robust need and increasing financial investment, even as fiscal pressures increase.""The UAE continues to benefit from strong domestic fundamentals, a sharp uplift in federal government spending and sustained diversity efforts.
What differentiates 2026 from preceding years is not simply the acceleration of technological change, though that acceleration is genuine, but rather a fundamental shift in how enterprises develop of their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this development masks a more profound change.
Rather, they ask whether these centers drive innovation, own profit-and-loss responsibility, and add to competitive differentiation. In 2026, the most effective GCCs will act like internal startups, agile, cross-functional, insight-driven, and deeply aligned with international service results. This shift from execution to ownership represents maybe the single most significant strategic recalibration in the GCC model's development.
Today, we're assembling more than 3000 conferences 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 bringing together financiers, companies, exchanges, and policymakers to discuss what is altering in the area, and what follows, including the growth 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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