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To reverse a years of deteriorating overall element performance, local labour market policy is moving from simple job development to handling active workforce shifts. Federal governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up employees for emerging functions. Workplace-based learning and apprenticeship-style pathways are becoming more common as firms incorporate AI tools into day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, local federal governments are magnifying their focus on expenditure discipline and personal capital mobilisation. Fiscal policy is pivoting towards the monetisation of state-owned properties in logistics, energies, and desalination to reroute funds towards higher-impact financial investments. While loaning via sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus remains on strengthening non-oil revenue structures.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now focused on shipment. In 2026, the priority is strengthening economic durability through more safe trade and investment relationships, effective AI implementation, managed labor force shifts and disciplined fiscal policy in a more tough and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial expansion in 2026, supported by strong private-sector performance, resistant domestic need and restored investment momentum, according to the most recent 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%. Throughout the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing investment in technology and AI-related facilities.
Oil revenues 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 remain a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including alleviated foreign ownership rules that intend to stimulate more investment. The financial deficit is forecasted to widen to 5.6% of GDP next year amidst softer oil prices, while the current five-year lease freeze in Riyadh aims to relieve inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise placed 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 stay key growth chauffeurs, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.
Oil production is expected to get again in the 2nd half of 2026, matching continuous financial investment in facilities, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has actually been available in building varied, resistant and globally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Financial 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 gaining pace, supported by robust need and rising financial investment, even as fiscal pressures increase.""The UAE continues to benefit from strong domestic basics, a sharp uplift in federal government spending and sustained diversification efforts.
What differentiates 2026 from preceding years is not simply the acceleration of technological change, though that velocity is real, however rather a basic shift in how business conceive of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more extensive transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most successful GCCs will act like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with international organization outcomes. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC model's development.
This week, we're assembling more than 3000 meetings in between investors and 119 Gulf-listed business with a combined value 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 altering in the region, and what follows, including the growth and continuous advancement of the Gulf's capital markets, and the area's growing function in worldwide networks of capital and trade.
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