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To reverse a decade of damaging overall aspect performance, regional labour market policy is shifting from basic job production to handling active labor force shifts. Federal governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip employees for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more typical as firms integrate AI tools into everyday workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, local federal governments are magnifying their focus on expenditure discipline and personal capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned properties in logistics, energies, and desalination to reroute funds towards higher-impact financial investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus remains on enhancing non-oil earnings structures.
PwC Middle East financial policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the concern is strengthening financial durability through more safe trade and investment relationships, reliable AI release, managed workforce shifts and disciplined fiscal policy in a more difficult 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 performance, durable domestic need and renewed financial investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most international areas peers next year, with local GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing investment in innovation and AI-related facilities.
Although oil incomes will be under pressure in the very first half of 2026, production is expected to rise once again in the 2nd half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will stay a significant factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial growth and policy reforms, including alleviated foreign ownership rules that aim to promote further financial investment. The financial deficit is predicted to widen to 5.6% of GDP next year in the middle of softer oil costs, while the current five-year rent freeze in Riyadh aims to alleviate inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and financial services remain crucial development chauffeurs, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the 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 ongoing investment in facilities, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually can be found in structure varied, resistant and globally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is acquiring speed, supported by robust demand and rising financial investment, even as financial pressures increase.""The UAE continues to take advantage of solid domestic fundamentals, a sharp uplift in government costs and continual diversification efforts.
What differentiates 2026 from preceding years is not simply the velocity of technological change, though that velocity is genuine, however rather a fundamental shift in how business conceive of their GCCs' purpose. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more profound transformation.
Instead, they ask whether these centers drive development, own profit-and-loss responsibility, and add to competitive distinction. In 2026, the most successful GCCs will act like internal start-ups, nimble, cross-functional, insight-driven, and deeply aligned with international company outcomes. This shift from execution to ownership represents maybe the single most substantial tactical 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 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 area, and what follows, consisting of the growth and ongoing advancement of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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