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To reverse a years of compromising overall factor efficiency, regional labour market policy is moving from basic task development to managing active labor force shifts. Governments and companies are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip employees for emerging functions. Workplace-based learning and apprenticeship-style paths are ending up being more common as firms integrate AI tools into daily workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, regional federal governments are intensifying their focus on expenditure discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds towards higher-impact financial investments. While borrowing via sukuk and sustainability-linked bonds is anticipated to increase to fund tactical deficits, the focus remains on strengthening non-oil profits frameworks.
PwC Middle East economic policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now concentrated on delivery. In 2026, the top priority is enhancing economic durability through more safe trade and investment relationships, efficient AI implementation, managed workforce transitions and disciplined fiscal policy in a more tough and fragmented worldwide environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's financial growth in 2026, supported by strong private-sector performance, resistant domestic need and renewed investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine 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, improving credit conditions and increasing investment in technology and AI-related infrastructure.
Oil revenues will be under pressure in the very first half of 2026, production is anticipated to rise again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will remain a significant contributor to GCC momentum, with GDP forecast 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 financial deficit is forecasted to expand to 5.6% of GDP next year in the middle of softer oil costs, while the current five-year rent freeze in Riyadh intends to relieve 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 broaden. Tourist, trade and monetary services stay essential development motorists, 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 expected to pick up again in the 2nd half of 2026, complementing continuous financial investment in infrastructure, technology and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has actually been available in building diverse, resistant and internationally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is gaining rate, supported by robust demand and increasing investment, even as financial pressures increase.""The UAE continues to gain from strong domestic fundamentals, a sharp uplift in government costs and continual diversity efforts.
Why Digital Shift Will Fuel Growth?What identifies 2026 from preceding years is not just the velocity of technological change, though that velocity is genuine, but rather a basic shift in how enterprises envisage their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, however this development masks a more extensive improvement.
Instead, they ask whether these centers drive innovation, own profit-and-loss responsibility, and contribute to competitive distinction. In 2026, the most successful GCCs will act like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with worldwide business results. This shift from execution to ownership represents maybe the single most substantial strategic recalibration in the GCC design's advancement.
This week, we're convening more than 3000 meetings 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 region, and what follows, including the growth and ongoing advancement of the Gulf's capital markets, and the area's growing role in international networks of capital and trade.
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