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To reverse a decade of compromising overall element efficiency, local labour market policy is shifting from basic job creation to managing active workforce transitions. Governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up employees for emerging functions. Workplace-based knowing and apprenticeship-style paths are becoming more typical as firms integrate AI tools into daily workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, local governments are magnifying 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 toward higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus stays on strengthening non-oil revenue structures.
PwC Middle East economic policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the top priority is enhancing financial resilience through more safe and secure trade and financial investment relationships, reliable AI implementation, managed workforce transitions and disciplined financial policy in a more difficult and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial expansion in 2026, supported by strong private-sector efficiency, resilient domestic need and renewed financial investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most international 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, enhancing credit conditions and rising financial investment in technology and AI-related facilities.
Oil revenues will be under pressure in the first half of 2026, production is expected to increase again in the second half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a significant factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Development will be supported by commercial growth and policy reforms, including reduced foreign ownership guidelines that aim to promote more financial investment. The fiscal deficit is forecasted to broaden to 5.6% of GDP next year amidst softer oil prices, while the current five-year lease freeze in Riyadh aims 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 forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and financial services remain crucial development drivers, supported by population development and continual domestic need. Dubai's economy grew 4.4% in the very 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 ongoing financial investment in facilities, 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, durable and globally competitive economies.
The Hidden Opportunities in Saudi Arabia's Emerging HubsScott Livermore, ICAEW Economic Consultant, and Chief Economist 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 demand and increasing financial investment, even as financial pressures increase.""The UAE continues to benefit from solid domestic principles, a sharp uplift in government costs and sustained diversity efforts.
The Power of Versatile Work in Retaining UAE SkillWhat distinguishes 2026 from preceding years is not merely the velocity of technological change, though that acceleration is real, however rather an essential shift in how business develop of their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this development masks a more extensive improvement.
Instead, they ask whether these centers drive innovation, own profit-and-loss duty, and contribute to competitive differentiation. In 2026, the most effective GCCs will act like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with worldwide organization outcomes. This shift from execution to ownership represents maybe the single most substantial tactical recalibration in the GCC design's evolution.
Today, we're assembling more than 3000 meetings in between financiers 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, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, including the expansion and continuous advancement of the Gulf's capital markets, and the area's growing function in international networks of capital and trade.
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