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To reverse a years of compromising total element productivity, regional labour market policy is shifting from basic task development to managing active labor force shifts. Governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up workers for emerging roles. Workplace-based learning and apprenticeship-style paths are becoming more typical as companies incorporate AI tools into everyday workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, regional governments are intensifying their concentrate on expense discipline and personal capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned assets in logistics, utilities, and desalination to reroute funds toward higher-impact financial investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on reinforcing non-oil income frameworks.
PwC Middle East financial policy and technique partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now focused on shipment. In 2026, the priority is reinforcing economic resilience through more secure trade and investment relationships, efficient AI release, handled workforce shifts and disciplined fiscal policy in a more difficult and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector performance, resistant domestic need and restored financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed 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 rising investment in technology and AI-related facilities.
Although oil revenues will be under pressure in the first half of 2026, production is expected to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it mentioned. Saudi Arabia will remain a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including eased foreign ownership guidelines that intend to promote more investment. The fiscal deficit is predicted to widen to 5.6% of GDP next year amid softer oil costs, while the recent five-year rent freeze in Riyadh intends to ease inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and financial services remain essential growth drivers, supported by population development and continual 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 choose up once again in the 2nd half of 2026, matching ongoing financial investment in infrastructure, 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, resilient and worldwide competitive economies.
Essential Middle East Market Research Insights in 2026Scott Livermore, ICAEW Economic Advisor, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is getting rate, supported by robust need and rising investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic fundamentals, a sharp uplift in federal government spending and continual diversification efforts.
Driving Corporate Operations Across Dubai and the GCCWhat identifies 2026 from preceding years is not merely the acceleration of technological modification, though that acceleration is genuine, however rather a basic shift in how enterprises conceive of 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 obligation, and contribute to competitive distinction. In 2026, the most successful GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with international business results. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC model's development.
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 investors, companies, exchanges, and policymakers to discuss what is changing in the region, and what follows, consisting of the growth and continuous advancement of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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