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To reverse a years of compromising overall factor productivity, regional labour market policy is moving from basic job development to managing active labor force transitions. Governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up employees for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more typical as firms incorporate AI tools into everyday workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, local governments are intensifying their concentrate on expenditure discipline and personal capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds toward higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus remains on enhancing non-oil revenue structures.
PwC Middle East financial policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the top priority is strengthening economic resilience through more safe trade and financial investment relationships, efficient AI deployment, managed labor force shifts and disciplined fiscal policy in a more tough and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector performance, resistant domestic demand and renewed investment momentum, according to the newest 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 projection 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, improving credit conditions and rising financial investment in innovation and AI-related facilities.
Although oil incomes 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 stated. Saudi Arabia will remain a major contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including reduced foreign ownership guidelines that aim to promote more investment. The financial deficit is forecasted to expand to 5.6% of GDP next year amidst softer oil rates, while the recent five-year rent freeze in Riyadh aims to reduce 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 broaden. Tourism, trade and monetary services remain essential development chauffeurs, supported by population development 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 expected to pick up again in the second half of 2026, matching ongoing investment in facilities, technology and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has come in building varied, resilient and globally competitive economies.
Corporate Planning for GCC ExcellenceScott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust need and rising financial investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic basics, a sharp uplift in government costs and sustained diversity efforts.
What identifies 2026 from preceding years is not just the acceleration of technological change, though that velocity is real, but rather an essential shift in how business develop of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more extensive change.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most successful GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with worldwide organization outcomes. This shift from execution to ownership represents perhaps the single most considerable tactical recalibration in the GCC design's advancement.
This week, we're assembling more than 3000 meetings in between investors and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining investors, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, consisting of the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing role in international networks of capital and trade.
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