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To reverse a years of compromising overall factor performance, regional labour market policy is shifting from easy task creation to handling active workforce transitions. Governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up workers for emerging functions. Workplace-based learning and apprenticeship-style paths are becoming more typical as companies incorporate AI tools into daily workflows.
With oil prices forecasted to typical $55-60 per barrel in 2026, regional governments are magnifying their focus on expense discipline and private capital mobilisation. Fiscal policy is rotating toward the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds toward higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus remains on enhancing non-oil income structures.
PwC Middle East financial policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on delivery. In 2026, the concern is strengthening financial durability through more safe and secure trade and financial investment relationships, efficient AI release, handled labor force transitions and disciplined financial policy in a more tough 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, resistant domestic need and renewed investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to surpass most worldwide areas peers next year, with local GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in innovation and AI-related infrastructure.
Oil revenues will be under pressure in the first half of 2026, production is expected to rise again in the second half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will remain a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by commercial growth and policy reforms, consisting of relieved foreign ownership rules that intend to stimulate more investment. The fiscal deficit is predicted to expand to 5.6% of GDP next year amidst softer oil costs, while the current five-year rent freeze in Riyadh aims to ease inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay essential growth motorists, supported by population development 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 choose up again in the 2nd half of 2026, complementing continuous investment in infrastructure, innovation and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has actually can be found in building varied, resistant and internationally competitive economies.
Mastering Regional Business Strategies for Scalable SuccessScott Livermore, ICAEW Economic Advisor, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is acquiring speed, supported by robust demand and rising investment, even as financial pressures increase.""The UAE continues to take advantage of solid domestic basics, a sharp uplift in federal government costs and continual diversity efforts.
Mastering Regional Business Strategies for Scalable SuccessWhat distinguishes 2026 from preceding years is not just the acceleration of technological change, though that acceleration is real, however rather an essential shift in how business envisage their GCCs' function. The is expected 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 add to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with global business outcomes. This shift from execution to ownership represents maybe the single most considerable tactical recalibration in the GCC model's advancement.
This week, we're convening more than 3000 meetings in between investors and 119 Gulf-listed business with a combined value 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 area, and what comes next, including the growth 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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