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To reverse a decade of compromising overall aspect efficiency, regional labour market policy is moving from basic job production to managing active workforce transitions. Federal governments and companies are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip workers for emerging roles. Workplace-based knowing and apprenticeship-style pathways are becoming more typical as firms integrate AI tools into daily workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, regional governments are intensifying their concentrate on expenditure discipline and personal capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned possessions in logistics, energies, and desalination to reroute funds toward higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is expected to increase to money strategic deficits, the focus remains on enhancing non-oil earnings frameworks.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the top priority is enhancing financial strength through more safe and secure trade and financial investment relationships, reliable AI release, managed labor force shifts and disciplined fiscal policy in a more tough and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector efficiency, durable domestic demand and renewed investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outperform most global regions peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing investment in innovation and AI-related facilities.
Oil profits will be under pressure in the very first half of 2026, production is anticipated to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will stay a significant factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by industrial growth and policy reforms, consisting of alleviated foreign ownership rules that intend to stimulate additional financial investment. The fiscal deficit is projected to widen to 5.6% of GDP next year in the middle of softer oil prices, while the recent five-year lease freeze in Riyadh intends to alleviate inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of efficiency, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services remain key growth chauffeurs, supported by population development and continual domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to get again in the second half of 2026, matching continuous 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 been available in building diverse, resistant and globally competitive economies.
How UAE Firms Are Battling the Great Talent MigrationScott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is gaining speed, supported by robust need and rising investment, even as fiscal pressures increase.""The UAE continues to gain from strong domestic basics, a sharp uplift in government costs and continual diversity efforts.
How UAE Firms Are Battling the Great Talent MigrationWhat differentiates 2026 from preceding years is not just the velocity of technological modification, though that acceleration is real, however rather a fundamental shift in how business conceive of their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, however this growth masks a more profound transformation.
Rather, they ask whether these centers drive development, own profit-and-loss duty, and add to competitive differentiation. In 2026, the most successful GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with international company outcomes. This shift from execution to ownership represents possibly the single most considerable strategic recalibration in the GCC model's development.
Today, we're convening 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 combining investors, business, exchanges, and policymakers to discuss what is altering in the area, and what comes next, consisting of the growth and continuous development of the Gulf's capital markets, and the region's growing function in global networks of capital and trade.
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