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To reverse a years of compromising overall aspect efficiency, regional labour market policy is moving from easy job production to managing active labor force transitions. Federal governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more common as firms incorporate AI tools into daily workflows.
With oil costs forecasted to average $55-60 per barrel in 2026, local federal governments are intensifying their focus on expense discipline and personal capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned assets in logistics, utilities, and desalination to reroute funds towards higher-impact financial investments. While loaning by means of sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on enhancing non-oil revenue structures.
PwC Middle East financial policy and technique partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the top priority is reinforcing economic durability through more safe and secure trade and investment relationships, effective AI deployment, managed workforce shifts and disciplined fiscal policy in a more challenging 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 performance, durable domestic demand 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 local GDP projection 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, enhancing credit conditions and rising financial investment in innovation and AI-related facilities.
Oil revenues will be under pressure in the first half of 2026, production is anticipated to increase again in the second half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will remain a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by commercial expansion and policy reforms, including eased foreign ownership guidelines that aim to promote additional investment. The fiscal deficit is forecasted to widen to 5.6% of GDP next year amid softer oil rates, while the recent five-year rent freeze in Riyadh aims to reduce inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of performance, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services stay key development chauffeurs, supported by population growth and continual domestic need. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to get once again in the 2nd half of 2026, matching continuous investment in infrastructure, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has been available in structure varied, durable and internationally competitive economies.
6 Mistakes to Avoid When Entering the Saudi MarketScott Livermore, ICAEW Economic Advisor, and Chief Financial 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 getting rate, supported by robust demand and rising financial investment, even as financial pressures increase.""The UAE continues to take advantage of solid domestic fundamentals, a sharp uplift in federal government spending and continual diversification efforts.
6 Mistakes to Avoid When Entering the Saudi MarketWhat identifies 2026 from preceding years is not merely the acceleration of technological change, though that velocity is real, however rather a basic shift in how enterprises conceive of their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more extensive improvement.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most successful GCCs will act like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with global organization results. This shift from execution to ownership represents maybe the single most substantial tactical 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 uniting investors, companies, exchanges, and policymakers to discuss what is changing in the area, and what follows, consisting of the expansion and ongoing advancement of the Gulf's capital markets, and the area's growing role in international networks of capital and trade.
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