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To reverse a years of weakening total aspect productivity, local labour market policy is moving from easy task development to managing active workforce shifts. Federal governments and companies 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 paths are ending up being more typical as companies integrate AI tools into everyday workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local federal governments are magnifying their concentrate on expenditure discipline and private capital mobilisation. Financial policy is rotating towards the monetisation of state-owned properties in logistics, energies, and desalination to reroute funds toward higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on reinforcing non-oil income structures.
PwC Middle East economic policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the concern is enhancing financial strength through more safe and secure trade and financial investment relationships, efficient AI implementation, handled labor force shifts and disciplined fiscal policy in a more challenging and fragmented global environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's economic growth 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 expected to outshine most worldwide regions peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in technology and AI-related facilities.
Oil incomes will be under pressure in the first half of 2026, production is expected to rise again in the second half of 2026, supporting the region's medium-term outlook, it specified. Saudi Arabia will stay a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by commercial growth and policy reforms, consisting of relieved foreign ownership rules that intend to stimulate further financial investment. The fiscal deficit is projected to broaden to 5.6% of GDP next year amidst softer oil costs, while the current five-year rent freeze in Riyadh intends to alleviate inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also 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 key growth motorists, supported by population development and continual domestic demand. 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 second half of 2026, matching ongoing investment in infrastructure, technology and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has come in structure varied, durable and globally competitive economies.
How to Optimize Middle East Business PlanningScott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is acquiring rate, supported by robust need and rising investment, even as fiscal pressures increase.""The UAE continues to benefit from solid domestic fundamentals, a sharp uplift in government costs and continual diversification efforts.
Strategic Strategy for Middle East ExcellenceWhat distinguishes 2026 from preceding years is not just the velocity of technological change, though that acceleration is genuine, however rather a basic shift in how enterprises develop of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more extensive improvement.
Instead, they ask whether these centers drive development, own profit-and-loss responsibility, and add to competitive distinction. In 2026, the most effective GCCs will act like internal start-ups, nimble, cross-functional, insight-driven, and deeply aligned with worldwide organization outcomes. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC design's evolution.
Today, we're convening more than 3000 conferences in between financiers 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 financiers, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, including the growth and ongoing development of the Gulf's capital markets, and the area's growing function in global networks of capital and trade.
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