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To reverse a decade of deteriorating overall aspect performance, local labour market policy is shifting from basic job creation to handling active labor force shifts. Governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip workers for emerging roles. Workplace-based learning and apprenticeship-style paths are becoming more common as companies incorporate AI tools into everyday workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, regional federal governments are heightening their concentrate 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 financial investments. While borrowing by means of sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus stays on reinforcing non-oil revenue frameworks.
PwC Middle East economic policy and method partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on shipment. In 2026, the concern is enhancing financial resilience through more safe and secure trade and financial investment relationships, efficient AI deployment, managed workforce shifts and disciplined fiscal policy in a more tough and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector performance, resistant 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 anticipated to surpass most international regions peers next year, with local GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in technology and AI-related infrastructure.
Although oil incomes will be under pressure in the very 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 mentioned. Saudi Arabia will stay a major contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Development will be supported by industrial growth and policy reforms, including reduced foreign ownership rules that aim to promote further investment. The fiscal deficit is projected to broaden to 5.6% of GDP next year amidst softer oil prices, while the recent 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 positioned for another strong year of efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay key growth drivers, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.
Oil production is anticipated to get again in the 2nd half of 2026, complementing ongoing financial investment in infrastructure, innovation and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has actually come in building diverse, durable and internationally competitive economies.
Corporate Planning for GCC LeadershipScott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is gaining rate, supported by robust demand and increasing investment, even as fiscal pressures increase.""The UAE continues to benefit from solid domestic principles, a sharp uplift in government spending and continual diversification efforts.
Corporate Planning for GCC LeadershipWhat differentiates 2026 from preceding years is not simply the velocity of technological change, though that acceleration is genuine, but rather an essential shift in how business envisage their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this growth masks a more profound transformation.
Instead, they ask whether these centers drive innovation, own profit-and-loss responsibility, and add 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 international service results. This shift from execution to ownership represents possibly the single most substantial strategic recalibration in the GCC design's development.
Today, we're assembling more than 3000 conferences in 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 investors, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, consisting of the expansion and ongoing advancement of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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