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To reverse a years of compromising overall aspect efficiency, local labour market policy is shifting from simple task creation to managing active labor force transitions. Governments and companies are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip employees for emerging functions. Workplace-based knowing and apprenticeship-style paths are ending up being more typical as firms incorporate AI tools into daily workflows.
With oil prices forecasted to average $55-60 per barrel in 2026, regional governments are magnifying their focus on expenditure discipline and private capital mobilisation. Financial policy is rotating towards the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds towards higher-impact investments. While borrowing through sukuk and sustainability-linked bonds is expected to increase to money 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 delivery. In 2026, the priority is strengthening economic strength through more protected trade and investment relationships, reliable AI deployment, managed labor force 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 performance, resilient 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 global regions peers next year, with local GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing investment in innovation and AI-related infrastructure.
Although oil incomes will be under pressure in the first half of 2026, production is expected to rise again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by industrial expansion and policy reforms, consisting of relieved foreign ownership rules that intend to promote additional investment. The fiscal deficit is forecasted to widen to 5.6% of GDP next year amidst softer oil costs, while the current five-year lease freeze in Riyadh intends to ease inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of performance, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay crucial development motorists, supported by population growth and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is expected to get once again in the 2nd half of 2026, matching ongoing financial investment in facilities, innovation and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually been available in building diverse, resilient and globally competitive economies.
Strategic Advice On Navigating Regional Market ComplexityScott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is getting pace, supported by robust need and increasing financial investment, even as fiscal pressures increase.""The UAE continues to take advantage of strong domestic principles, a sharp uplift in government costs and sustained diversification efforts.
What differentiates 2026 from preceding years is not just the velocity of technological change, though that velocity is real, but rather a basic shift in how business envisage their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more extensive improvement.
Rather, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most successful GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide company results. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC design's advancement.
Today, we're assembling more than 3000 conferences between investors and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together financiers, companies, exchanges, and policymakers to discuss what is changing in the area, and what comes next, consisting of the expansion and continuous development of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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