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To reverse a years of weakening total element productivity, local labour market policy is shifting from easy task development to handling active workforce transitions. Governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip employees for emerging roles. Workplace-based knowing and apprenticeship-style pathways are becoming more common as firms incorporate AI tools into day-to-day workflows.
With oil costs forecasted to average $55-60 per barrel in 2026, regional governments are magnifying their concentrate on expenditure discipline and private capital mobilisation. Financial policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds toward higher-impact financial investments. While loaning through sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on enhancing non-oil income structures.
PwC Middle East financial policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now focused on shipment. In 2026, the priority is enhancing financial resilience through more safe trade and financial investment relationships, efficient AI implementation, handled labor force transitions 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 growth in 2026, supported by strong private-sector performance, resilient domestic demand and restored financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most global regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing financial investment in technology and AI-related facilities.
Oil profits will be under pressure in the first half of 2026, production is anticipated to increase once again in the 2nd 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.
Development will be supported by industrial growth and policy reforms, including reduced foreign ownership guidelines that aim to promote further financial investment. The financial deficit is projected to widen to 5.6% of GDP next year amidst softer oil rates, 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 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 growth chauffeurs, supported by population growth and continual domestic demand. 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 ongoing investment in infrastructure, innovation and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually come in building diverse, durable and globally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Handling 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 demand and rising financial investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic fundamentals, a sharp uplift in government spending and sustained diversification efforts.
Navigating GCC Business Strategies for Scalable SuccessWhat differentiates 2026 from preceding years is not simply the acceleration of technological modification, though that velocity is genuine, however rather an essential shift in how business envisage their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, however this growth masks a more extensive improvement.
Instead, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with global business results. This shift from execution to ownership represents perhaps the single most considerable strategic recalibration in the GCC model's advancement.
This week, we're convening more than 3000 meetings in 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 financiers, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, including the expansion and continuous advancement of the Gulf's capital markets, and the region's growing role in global networks of capital and trade.
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