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To reverse a decade of damaging overall aspect productivity, local labour market policy is moving from basic job development to managing active labor force shifts. Federal governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip workers for emerging functions. Workplace-based learning and apprenticeship-style pathways are ending up being more typical as companies integrate AI tools into daily workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, local federal governments are magnifying their focus on expense discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds toward higher-impact investments. While borrowing via sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus stays on strengthening non-oil profits frameworks.
PwC Middle East financial policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the concern is strengthening economic durability through more protected trade and financial investment relationships, effective AI deployment, 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 region's economic growth in 2026, supported by strong private-sector performance, durable domestic need and restored financial investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most global areas 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, enhancing credit conditions and rising investment in technology and AI-related facilities.
Oil incomes will be under pressure in the very first half of 2026, production is anticipated to rise once again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Development will be supported by industrial expansion and policy reforms, consisting of reduced foreign ownership guidelines that aim to stimulate further financial investment. The financial deficit is projected to broaden to 5.6% of GDP next year in the middle of softer oil rates, while the recent five-year rent freeze in Riyadh intends to alleviate inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of performance, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and financial services stay crucial growth drivers, supported by population development and sustained domestic need. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.

Oil production is anticipated to get again in the second half of 2026, matching ongoing financial investment in infrastructure, technology and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has been available in building diverse, resistant and worldwide competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is acquiring rate, supported by robust demand and increasing investment, even as financial pressures increase.""The UAE continues to take advantage of solid domestic fundamentals, a sharp uplift in federal government spending and sustained diversification efforts.
Middle East News: Major Market Trends for 2026What differentiates 2026 from preceding years is not merely the velocity of technological modification, though that velocity is real, but rather an essential shift in how enterprises envisage their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more profound change.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most successful GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply aligned with global organization outcomes. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC design's development.
This week, we're assembling more than 3000 meetings in between financiers and 119 Gulf-listed business with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, consisting of the expansion and continuous development of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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