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To reverse a decade of deteriorating overall element productivity, regional labour market policy is shifting from basic job creation to handling active workforce shifts. Federal governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip employees for emerging functions. Workplace-based learning and apprenticeship-style pathways are ending up being more typical as firms integrate AI tools into daily workflows.
With oil costs anticipated to typical $55-60 per barrel in 2026, local federal governments are magnifying their concentrate on expenditure discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds towards higher-impact investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on enhancing non-oil revenue structures.
PwC Middle East economic policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now focused on shipment. In 2026, the top priority is reinforcing economic resilience through more protected trade and financial investment relationships, reliable AI release, managed workforce shifts and disciplined financial policy in a more challenging and fragmented international environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector efficiency, resistant domestic demand and renewed investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most worldwide regions peers next year, with regional GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in innovation and AI-related infrastructure.
Oil profits will be under pressure in the first half of 2026, production is expected to rise once again in the second half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will remain a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial growth and policy reforms, consisting of eased foreign ownership rules that intend to stimulate further financial investment. The fiscal deficit is projected to widen to 5.6% of GDP next year amidst softer oil prices, while the recent five-year rent freeze in Riyadh intends to relieve inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of efficiency, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services remain key growth drivers, supported by population development and continual 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 once again in the second half of 2026, complementing continuous investment in infrastructure, technology and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has can be found in building varied, durable and worldwide competitive economies.
How to Secure a Competitive Advantage in DubaiScott Livermore, ICAEW Economic Advisor, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. 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 solid domestic fundamentals, a sharp uplift in government spending and sustained diversification efforts.
How to Secure a Leading Advantage in 2026What distinguishes 2026 from preceding years is not just the acceleration of technological change, though that acceleration is real, but rather a basic shift in how business develop of their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, however this development masks a more extensive transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most effective GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with international business results. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC model's evolution.
Today, we're assembling more than 3000 conferences between financiers and 119 Gulf-listed companies 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 region, and what comes next, including the expansion and ongoing advancement of the Gulf's capital markets, and the area's growing function in global networks of capital and trade.
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