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To reverse a decade of damaging overall element efficiency, regional labour market policy is shifting from basic task creation to managing active labor force transitions. Federal governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up employees for emerging roles. Workplace-based learning and apprenticeship-style pathways are becoming more common as firms integrate AI tools into day-to-day workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, regional federal governments are heightening their focus on expense discipline and private capital mobilisation. Fiscal policy is rotating toward the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds towards higher-impact financial investments. While loaning through 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 economic policy and technique partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the priority is strengthening economic durability through more secure trade and financial investment relationships, efficient AI release, handled labor force shifts and disciplined fiscal policy in a more tough 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 performance, durable domestic demand and restored financial investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most worldwide areas peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising investment in technology and AI-related infrastructure.
Although oil earnings will be under pressure in the first half of 2026, production is anticipated to rise again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by industrial growth and policy reforms, consisting of reduced foreign ownership guidelines that intend to promote additional financial investment. The financial deficit is projected to broaden to 5.6% of GDP next year amidst softer oil rates, while the current five-year lease freeze in Riyadh intends to reduce inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of performance, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay essential development motorists, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.

Oil production is expected to get again in the second half of 2026, matching ongoing financial investment in facilities, technology and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually been available in structure diverse, resilient and globally competitive economies.
Will Strategic Research Define Dubai Industrial Success?Scott Livermore, ICAEW Economic Advisor, and Chief Economist and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is acquiring rate, supported by robust need and rising financial investment, even as fiscal pressures increase.""The UAE continues to benefit from solid domestic basics, a sharp uplift in government costs and sustained diversity efforts.
What differentiates 2026 from preceding years is not simply the acceleration of technological modification, though that acceleration is genuine, but rather a fundamental shift in how business envisage their GCCs' function. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more profound improvement.
Rather, 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 startups, nimble, cross-functional, insight-driven, and deeply aligned with global service results. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC model's advancement.
Today, we're assembling more than 3000 meetings between financiers and 119 Gulf-listed business with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together investors, companies, exchanges, and policymakers to discuss what is changing in the area, and what comes next, consisting of the growth and continuous advancement of the Gulf's capital markets, and the region's growing function in global networks of capital and trade.
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