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To reverse a decade of compromising overall aspect productivity, local labour market policy is moving from simple job development to managing active labor force transitions. Governments and companies are scaling short, modular training programmes 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 companies integrate AI tools into daily workflows.
With oil costs anticipated to typical $55-60 per barrel in 2026, regional federal 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 reroute funds towards higher-impact investments. While borrowing via sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus remains on reinforcing non-oil revenue structures.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the priority is strengthening financial durability through more safe trade and investment relationships, efficient AI deployment, handled labor force shifts and disciplined fiscal policy in a more tough and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic expansion in 2026, supported by strong private-sector performance, resilient domestic need and renewed 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 areas peers next year, with regional GDP projection 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, improving credit conditions and increasing financial investment in innovation and AI-related facilities.
Although oil profits will be under pressure in the very first half of 2026, production is anticipated to increase once again in the second half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will stay a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, consisting of reduced foreign ownership guidelines that intend to stimulate further investment. The financial deficit is forecasted to widen to 5.6% of GDP next year amid softer oil rates, while the current five-year rent freeze in Riyadh intends to relieve inflationary pressures, though it may constrain future real estate 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 broaden. Tourism, trade and financial services stay crucial growth chauffeurs, supported by population development and sustained 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 facilities, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has come in structure varied, durable and worldwide competitive economies.
The Comprehensive Guide to Regional Industrial Success in 2026Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is getting pace, supported by robust need and rising 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 DubaiWhat identifies 2026 from preceding years is not just the velocity of technological modification, though that velocity is real, however rather a fundamental shift in how business conceive of their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, however this growth masks a more extensive transformation.
Instead, they ask whether these centers drive development, own profit-and-loss duty, and add 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 international business results. This shift from execution to ownership represents perhaps the single most considerable tactical recalibration in the GCC design's advancement.
This week, we're convening more than 3000 meetings 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 investors, companies, exchanges, and policymakers to discuss what is changing in the region, and what follows, including the growth and continuous advancement of the Gulf's capital markets, and the area's growing role in international networks of capital and trade.
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