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To reverse a years of weakening total factor productivity, regional labour market policy is shifting from simple job creation to handling active workforce shifts. Governments and companies are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up employees for emerging roles. Workplace-based learning and apprenticeship-style paths are becoming more typical as companies integrate AI tools into day-to-day workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, local governments are heightening their concentrate on expenditure discipline and private capital mobilisation. Financial policy is pivoting towards the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds towards higher-impact investments. While loaning through sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus remains on strengthening non-oil profits structures.
PwC Middle East economic policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now focused on shipment. In 2026, the priority is reinforcing financial resilience through more protected trade and investment relationships, efficient AI deployment, managed workforce shifts and disciplined financial policy in a more challenging 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 efficiency, durable domestic need and restored investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most global areas peers next year, with local GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is predicted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing financial investment in innovation and AI-related facilities.
Oil earnings will be under pressure in the very first half of 2026, production is anticipated to rise once again in the second half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will stay a significant factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Development will be supported by commercial expansion and policy reforms, consisting of eased foreign ownership guidelines that intend to promote additional investment. The financial deficit is predicted to widen to 5.6% of GDP next year in the middle of softer oil prices, while the current five-year lease freeze in Riyadh intends to reduce inflationary pressures, though it might constrain future real estate 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 monetary services remain essential growth drivers, supported by population development and sustained domestic need. 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 once again in the 2nd half of 2026, complementing continuous financial investment in facilities, technology and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has can be found in structure diverse, resistant and globally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is acquiring speed, supported by robust need and increasing investment, even as fiscal pressures increase.""The UAE continues to gain from strong domestic basics, a sharp uplift in federal government spending and continual diversification efforts.
What identifies 2026 from preceding years is not just the velocity of technological change, though that acceleration is real, however rather a fundamental shift in how business envisage their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this development masks a more extensive change.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most effective GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide business outcomes. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC model's evolution.
This week, we're assembling more than 3000 conferences 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 financiers, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, including the expansion 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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