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To reverse a decade of deteriorating overall factor performance, local labour market policy is moving from basic task development to managing active workforce shifts. Governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up employees for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more common as firms integrate AI tools into day-to-day workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, regional governments are intensifying their focus on expenditure discipline and personal capital mobilisation. Financial policy is pivoting towards the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds towards higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is expected to increase to money strategic deficits, the focus stays on reinforcing non-oil profits structures.
PwC Middle East economic policy and technique partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the priority is strengthening financial durability through more protected trade and investment relationships, reliable AI deployment, handled labor force shifts and disciplined fiscal policy in a more difficult and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector performance, resilient domestic demand and renewed investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most global regions peers next year, with local GDP projection 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, enhancing credit conditions and increasing financial investment in technology and AI-related facilities.
Although oil revenues will be under pressure in the first half of 2026, production is expected to rise once again in the second half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by industrial expansion and policy reforms, including relieved foreign ownership rules that intend to promote more investment. The financial deficit is projected to expand to 5.6% of GDP next year in the middle of softer oil rates, while the current five-year lease freeze in Riyadh aims to relieve inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of efficiency, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services remain crucial development motorists, 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 expected to get once again in the 2nd half of 2026, matching ongoing financial investment in facilities, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has been available in structure diverse, resistant and internationally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is gaining rate, supported by robust need and rising financial investment, even as financial pressures increase.""The UAE continues to gain from solid domestic fundamentals, a sharp uplift in federal government costs and sustained diversity efforts.
What identifies 2026 from preceding years is not simply the acceleration of technological change, though that acceleration is genuine, however rather an essential shift in how business envisage their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, but this growth masks a more extensive improvement.
Rather, they ask whether these centers drive innovation, own profit-and-loss duty, and add to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with international service 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 convening more than 3000 conferences 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 uniting financiers, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, consisting of the growth and ongoing advancement of the Gulf's capital markets, and the area's growing function in worldwide networks of capital and trade.
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