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To reverse a decade of deteriorating total element productivity, regional labour market policy is shifting from simple task production to managing active workforce shifts. Governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip workers for emerging functions. Workplace-based knowing and apprenticeship-style paths are becoming more typical as firms integrate AI tools into daily workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, regional governments are heightening their concentrate on expense discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned possessions in logistics, utilities, and desalination to reroute funds toward higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus stays on strengthening non-oil revenue structures.
PwC Middle East financial policy and strategy partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the priority is reinforcing financial resilience through more protected trade and investment relationships, reliable AI implementation, handled labor force shifts and disciplined fiscal policy in a more tough 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 efficiency, durable domestic demand and renewed investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most international regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing financial investment in technology and AI-related infrastructure.
Oil incomes will be under pressure in the first half of 2026, production is expected to rise again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will stay 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, consisting of reduced foreign ownership guidelines that aim to promote additional investment. The financial deficit is projected to broaden 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 reduce inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of efficiency, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and monetary services stay essential development motorists, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.

Oil production is anticipated to get once again in the second half of 2026, complementing ongoing financial investment in infrastructure, 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 diverse, resistant and globally competitive economies.
The Operational Benefits of Deep Strategy ResearchScott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is gaining speed, supported by robust demand and rising financial investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic fundamentals, a sharp uplift in government costs and continual diversity efforts.
What differentiates 2026 from preceding years is not simply the acceleration of technological modification, though that velocity is real, but rather a fundamental shift in how enterprises develop of their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this development masks a more extensive transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss responsibility, and contribute to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply aligned with worldwide business outcomes. This shift from execution to ownership represents possibly the single most considerable tactical recalibration in the GCC model's advancement.
This week, we're convening more than 3000 conferences in between investors and 119 Gulf-listed companies with a combined worth 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, consisting of the expansion and continuous advancement of the Gulf's capital markets, and the region's growing role in global networks of capital and trade.
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