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To reverse a years of weakening total element efficiency, regional labour market policy is moving from simple task creation to handling active workforce shifts. Federal governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up workers for emerging functions. Workplace-based knowing and apprenticeship-style paths are becoming more typical as companies incorporate AI tools into everyday workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, local governments are magnifying their focus on expenditure discipline and personal capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned assets in logistics, energies, and desalination to redirect funds toward higher-impact investments. While borrowing through sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on enhancing non-oil profits structures.
PwC Middle East economic policy and strategy partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the priority is reinforcing financial durability through more secure trade and investment relationships, efficient AI release, handled workforce transitions and disciplined financial policy in a more challenging 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 need and restored financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most international areas peers next year, with regional GDP projection 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 facilities.
Although oil earnings will be under pressure in the first half of 2026, production is expected to rise once again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Development will be supported by commercial growth and policy reforms, including eased foreign ownership guidelines that intend to stimulate further investment. The fiscal deficit is projected to broaden to 5.6% of GDP next year amidst 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 likewise positioned for another strong year of efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and financial services remain key development motorists, supported by population growth and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.

Oil production is expected to pick up once again in the 2nd half of 2026, complementing ongoing financial investment in facilities, innovation and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has actually can be found in structure diverse, resilient and worldwide competitive economies.
How Digital Shift Will Fuel Growth?Scott Livermore, ICAEW Economic Consultant, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust demand and rising financial investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic principles, a sharp uplift in government spending and sustained diversity efforts.
How Digital Shift Will Fuel Growth?What differentiates 2026 from preceding years is not simply the velocity of technological change, though that velocity is genuine, but rather a basic shift in how enterprises conceive of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more profound transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with international company outcomes. This shift from execution to ownership represents perhaps the single most significant tactical recalibration in the GCC model's evolution.
This week, we're convening more than 3000 meetings between investors and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together investors, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, including the expansion and ongoing advancement of the Gulf's capital markets, and the area's growing function in worldwide networks of capital and trade.
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