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To reverse a years of damaging overall factor productivity, local labour market policy is moving from simple job creation to managing active workforce transitions. Governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up workers for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more typical as companies incorporate AI tools into daily workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local federal governments are magnifying their focus on expense discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned assets in logistics, energies, and desalination to redirect funds towards higher-impact investments. While loaning via sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus remains on reinforcing non-oil revenue structures.
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 enhancing economic resilience through more safe and secure trade and investment relationships, reliable AI implementation, handled workforce shifts and disciplined financial policy in a more challenging 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, resilient 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 exceed most global regions peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing 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 expected to rise once again in the second half of 2026, supporting the area's medium-term outlook, it stated. 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 relieved foreign ownership guidelines that intend to stimulate more financial investment. The financial deficit is predicted to widen to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year rent freeze in Riyadh aims to alleviate 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 rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services remain crucial development motorists, supported by population development and sustained 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 get again in the 2nd half of 2026, matching continuous financial investment in infrastructure, innovation and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has actually come in building varied, resilient and internationally competitive economies.
Bridging Strategy With Business Performance Across the Middle EastScott Livermore, ICAEW Economic Consultant, and Chief Financial Expert 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 acquiring speed, supported by robust need and increasing financial investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic fundamentals, a sharp uplift in federal government costs and sustained diversity efforts.
What identifies 2026 from preceding years is not simply the acceleration of technological change, though that velocity is real, however rather a basic 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 extensive change.
Rather, they ask whether these centers drive development, own profit-and-loss responsibility, 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 international service outcomes. This shift from execution to ownership represents maybe the single most considerable strategic recalibration in the GCC model's advancement.
Today, we're assembling more than 3000 conferences in between investors and 119 Gulf-listed business with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, companies, exchanges, and policymakers to discuss what is altering in the region, and what follows, including the expansion and ongoing development of the Gulf's capital markets, and the area's growing function in global networks of capital and trade.
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