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To reverse a decade of deteriorating total element performance, local labour market policy is shifting from basic job production to managing active workforce transitions. Governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up workers for emerging functions. Workplace-based knowing and apprenticeship-style paths are ending up being more typical as firms integrate AI tools into day-to-day workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, local governments are heightening their focus on expenditure discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned assets in logistics, utilities, and desalination to reroute funds toward higher-impact investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus stays on enhancing non-oil profits structures.
PwC Middle East financial policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the priority is enhancing economic durability through more secure trade and financial investment relationships, effective AI deployment, handled workforce shifts and disciplined fiscal policy in a more tough and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic expansion in 2026, supported by strong private-sector performance, resilient domestic need and renewed financial investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most worldwide areas peers next year, with regional GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising investment in innovation and AI-related infrastructure.
Oil earnings will be under pressure in the first half of 2026, production is expected to rise again in the 2nd half of 2026, supporting the region's medium-term outlook, it specified. Saudi Arabia will remain a major contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial growth and policy reforms, consisting of relieved foreign ownership guidelines that aim to stimulate additional financial investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year amidst softer oil costs, while the current five-year lease freeze in Riyadh aims to reduce inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of efficiency, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and financial services stay essential growth chauffeurs, supported by population development and continual domestic need. 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, complementing ongoing financial investment in facilities, technology and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has actually can be found in structure varied, resistant and globally competitive economies.
Scaling Corporate Growth Through Strategic InnovationScott Livermore, ICAEW Economic Consultant, and Chief Economist 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 rate, supported by robust demand and increasing investment, even as fiscal pressures increase.""The UAE continues to take advantage of solid domestic fundamentals, a sharp uplift in federal government costs and sustained diversity efforts.
What differentiates 2026 from preceding years is not simply the velocity of technological change, though that acceleration is genuine, however rather a basic shift in how business envisage their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, but this development masks a more profound improvement.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most effective GCCs will act like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with global company outcomes. This shift from execution to ownership represents perhaps the single most substantial tactical recalibration in the GCC model's evolution.
Today, we're convening more than 3000 meetings 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 bringing together investors, companies, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the expansion and continuous development of the Gulf's capital markets, and the area's growing function in worldwide networks of capital and trade.
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