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To reverse a decade of weakening overall factor productivity, local labour market policy is moving from basic job development to handling active workforce transitions. Governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip workers for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more common as firms incorporate AI tools into everyday workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, regional federal governments are magnifying their focus on expenditure discipline and private capital mobilisation. Fiscal policy is rotating toward the monetisation of state-owned possessions in logistics, energies, and desalination to reroute funds toward higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus remains on strengthening non-oil earnings frameworks.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the top priority is enhancing economic resilience through more secure trade and investment relationships, effective AI deployment, handled workforce transitions and disciplined fiscal policy in a more tough and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector efficiency, durable domestic need and restored investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most global areas peers next year, with local 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, enhancing credit conditions and increasing investment in innovation and AI-related facilities.
Oil profits will be under pressure in the first half of 2026, production is expected to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will stay a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Development will be supported by commercial expansion and policy reforms, including reduced foreign ownership guidelines that intend to promote more financial investment. The fiscal deficit is projected to widen to 5.6% of GDP next year in the middle of softer oil costs, while the current five-year rent freeze in Riyadh intends to alleviate inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also placed 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 financial services stay key growth drivers, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.
Oil production is expected to get again in the second half of 2026, matching continuous financial investment in infrastructure, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has been available in building diverse, resistant and globally competitive economies.
Leveraging GCC Research to Effectively Drive Strategic GrowthScott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is acquiring speed, supported by robust need and rising financial investment, even as fiscal pressures increase.""The UAE continues to gain from strong domestic fundamentals, a sharp uplift in government costs and sustained diversity efforts.
What identifies 2026 from preceding years is not merely the velocity 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 4 hundred thirteen billion dollars by 2040, however this development masks a more extensive improvement.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide service outcomes. This shift from execution to ownership represents possibly the single most substantial strategic recalibration in the GCC design's evolution.
This week, we're convening more than 3000 conferences between investors and 119 Gulf-listed companies with a combined worth 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 altering in the region, and what comes next, including the expansion and continuous development of the Gulf's capital markets, and the region's growing role in global networks of capital and trade.
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