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To reverse a years of compromising total factor efficiency, regional labour market policy is shifting from simple task production to handling active workforce transitions. Governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more typical as firms integrate AI tools into day-to-day workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local federal governments are magnifying their concentrate on expense discipline and personal capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds towards higher-impact financial investments. While loaning through sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus stays on strengthening non-oil earnings frameworks.
PwC Middle East economic policy and method partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on delivery. In 2026, the concern is strengthening economic resilience through more safe trade and investment relationships, efficient AI release, handled workforce transitions and disciplined fiscal policy in a more difficult and fragmented international environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's economic expansion in 2026, supported by strong private-sector efficiency, resistant 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 worldwide regions peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising investment in innovation and AI-related facilities.
Oil revenues will be under pressure in the very first half of 2026, production is expected to rise again in the second half of 2026, supporting the region's medium-term outlook, it specified. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by industrial expansion and policy reforms, consisting of eased foreign ownership guidelines that aim to promote more financial investment. The financial deficit is forecasted to expand to 5.6% of GDP next year amid softer oil prices, while the current five-year rent freeze in Riyadh aims to reduce inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and financial services stay essential development drivers, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.
Oil production is expected to select up once again in the second half of 2026, complementing ongoing investment in infrastructure, innovation and international trade collaborations. 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 worldwide competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is getting pace, supported by robust demand and increasing financial investment, even as fiscal pressures increase.""The UAE continues to take advantage of strong domestic principles, a sharp uplift in government costs and continual diversification efforts.
What identifies 2026 from preceding years is not merely the velocity of technological modification, though that acceleration is genuine, however rather a fundamental shift in how enterprises envisage their GCCs' function. The is anticipated to grow to 4 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 obligation, and contribute to competitive differentiation. In 2026, the most effective GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply lined up with international company 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 investors and 119 Gulf-listed business 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 region, and what comes next, including the growth and continuous advancement of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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