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To reverse a years of damaging total element productivity, local labour market policy is moving from easy job creation to managing active labor force transitions. 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 roles. Workplace-based knowing and apprenticeship-style pathways are ending up being more typical as firms integrate AI tools into daily workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, local governments are heightening their focus on expenditure discipline and private capital mobilisation. Fiscal policy is rotating toward the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds towards higher-impact investments. While borrowing via sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus stays on strengthening non-oil earnings structures.
PwC Middle East economic policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on delivery. In 2026, the top priority is reinforcing economic durability through more secure trade and investment relationships, reliable AI deployment, managed labor force transitions and disciplined financial policy in a more tough and fragmented global environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector efficiency, durable domestic need and renewed 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 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 investment in technology and AI-related infrastructure.
Oil earnings will be under pressure in the very first half of 2026, production is expected to rise again in the second half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will remain a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by industrial expansion and policy reforms, including alleviated foreign ownership guidelines that aim to promote more investment. The fiscal deficit is predicted to widen to 5.6% of GDP next year amid softer oil prices, while the recent five-year rent freeze in Riyadh intends to relieve inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of efficiency, with GDP projection 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 again in the second half of 2026, matching ongoing financial investment in facilities, technology and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has been available in structure diverse, resistant and worldwide competitive economies.
Advanced Planning for Middle East LeadershipScott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is getting rate, supported by robust demand and rising investment, even as financial pressures increase.""The UAE continues to gain from solid domestic principles, a sharp uplift in federal government costs and continual diversification efforts.
Advanced Planning for Middle East LeadershipWhat identifies 2026 from preceding years is not simply the acceleration of technological modification, though that velocity is genuine, but rather a basic shift in how business conceive of their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more extensive transformation.
Instead, they ask whether these centers drive innovation, own profit-and-loss duty, and add to competitive distinction. In 2026, the most successful GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide company outcomes. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC design's development.
This week, we're assembling more than 3000 conferences 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 combining financiers, business, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the growth and continuous development of the Gulf's capital markets, and the area's growing role in international networks of capital and trade.
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