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To reverse a decade of weakening overall element performance, local labour market policy is shifting from easy task production to managing active labor force transitions. Federal governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip workers for emerging functions. Workplace-based learning and apprenticeship-style paths are becoming more common as companies integrate AI tools into daily workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local governments are heightening their concentrate on expenditure discipline and personal capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned possessions in logistics, energies, and desalination to reroute funds towards higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is expected to increase to money strategic deficits, the focus remains on reinforcing non-oil earnings structures.
PwC Middle East financial policy and method partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now concentrated on delivery. In 2026, the top priority is reinforcing economic durability through more safe and secure trade and investment relationships, reliable AI deployment, handled workforce transitions and disciplined financial policy in a more difficult and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's financial growth in 2026, supported by strong private-sector efficiency, resilient domestic need and renewed investment momentum, according to the newest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most international regions peers next year, with local GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in innovation and AI-related facilities.
Oil incomes will be under pressure in the first half of 2026, production is expected to rise once again in the 2nd half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Development will be supported by industrial expansion and policy reforms, consisting of alleviated foreign ownership rules that aim to promote more investment. The fiscal deficit is predicted to widen to 5.6% of GDP next year amid softer oil rates, while the current five-year rent freeze in Riyadh aims to ease inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of efficiency, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services remain key development drivers, 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 anticipated to select up once again in the second half of 2026, complementing ongoing investment in facilities, technology and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has actually been available in building varied, resilient and worldwide competitive economies.
Navigating the 2026 GCC Business Landscape for ExecutivesScott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is getting speed, supported by robust need and increasing investment, even as fiscal pressures increase.""The UAE continues to gain from strong domestic fundamentals, a sharp uplift in government spending and sustained diversity efforts.
Navigating the 2026 GCC Business Landscape for ExecutivesWhat identifies 2026 from preceding years is not merely the acceleration of technological change, though that velocity is genuine, but rather an essential shift in how business envisage their GCCs' function. The is anticipated to grow to four 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 obligation, and add to competitive differentiation. In 2026, the most effective GCCs will act like internal startups, agile, cross-functional, insight-driven, and deeply aligned with international business results. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC design's evolution.
Today, we're assembling 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 uniting financiers, companies, exchanges, and policymakers to discuss what is altering in the region, and what follows, consisting of the growth and ongoing development of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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