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To reverse a years of damaging overall aspect performance, local labour market policy is moving from easy task production to managing active workforce shifts. Governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up employees for emerging functions. Workplace-based learning and apprenticeship-style paths are ending up being more typical as companies integrate AI tools into everyday workflows.
With oil costs anticipated to average $55-60 per barrel in 2026, local governments are magnifying their concentrate on expense discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned assets in logistics, energies, and desalination to reroute funds toward higher-impact financial investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus stays on reinforcing non-oil earnings frameworks.
PwC Middle East economic policy and technique partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the priority is reinforcing economic durability through more safe trade and financial investment relationships, effective AI deployment, managed workforce shifts and disciplined financial policy in a more difficult and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic expansion in 2026, supported by strong private-sector performance, durable domestic need and renewed financial investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to exceed most global areas peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising financial investment in technology and AI-related infrastructure.
Although oil profits will be under pressure in the first half of 2026, production is anticipated to rise once again in the 2nd half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will stay a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial growth and policy reforms, consisting of eased foreign ownership guidelines that aim to promote further investment. The financial deficit is predicted to expand to 5.6% of GDP next year amid softer oil prices, while the current five-year lease freeze in Riyadh intends to reduce inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of performance, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and financial services remain key development motorists, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.
Oil production is expected to pick up once again in the second half of 2026, complementing ongoing financial investment in infrastructure, innovation and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has been available in structure diverse, durable and globally competitive economies.
How to Maintain a Competitive Advantage in DubaiScott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is gaining pace, supported by robust demand and increasing financial investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic fundamentals, a sharp uplift in government spending and continual diversity efforts.
What distinguishes 2026 from preceding years is not just the velocity of technological change, though that acceleration is real, 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 development masks a more profound improvement.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most effective GCCs will act like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with worldwide company outcomes. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC design's advancement.
Today, we're assembling more than 3000 meetings between financiers and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together investors, companies, exchanges, and policymakers to discuss what is altering in the region, and what comes next, consisting of the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing function in worldwide networks of capital and trade.
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