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To reverse a decade of deteriorating total factor performance, regional labour market policy is shifting from simple job development to managing active labor force transitions. Governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip workers for emerging functions. Workplace-based learning and apprenticeship-style paths are ending up being more typical as firms incorporate AI tools into daily workflows.
With oil prices anticipated to typical $55-60 per barrel in 2026, regional federal governments are heightening their concentrate on expense discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned possessions in logistics, energies, and desalination to reroute funds toward higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is anticipated to increase to fund tactical deficits, the focus remains on enhancing non-oil earnings frameworks.
PwC Middle East financial policy and strategy partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the concern is enhancing economic resilience through more safe and secure trade and investment relationships, effective AI implementation, managed workforce transitions and disciplined fiscal policy in a more challenging and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic expansion in 2026, supported by strong private-sector performance, durable domestic demand and restored investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most global regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising financial investment in innovation and AI-related facilities.
Oil earnings will be under pressure in the very first half of 2026, production is expected to rise again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will remain a significant factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including relieved foreign ownership guidelines that intend to stimulate further financial investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year in the middle of softer oil costs, while the current five-year lease freeze in Riyadh aims to reduce 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 broaden. Tourist, trade and financial services remain essential growth motorists, supported by population growth and sustained 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 choose up again in the second half of 2026, matching continuous investment in facilities, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has can be found in building varied, resistant and globally competitive economies.
Analysing 2026 Market Research for Strategic GrowthScott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. 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 strong domestic fundamentals, a sharp uplift in government spending and sustained diversification efforts.
How to Optimise GCC Operations in 2026What differentiates 2026 from preceding years is not merely the acceleration of technological change, though that acceleration is real, however rather an essential shift in how enterprises conceive of their GCCs' function. The is expected to grow to four hundred thirteen billion dollars by 2040, but this development masks a more profound transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss responsibility, 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 company outcomes. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC model's evolution.
This week, we're convening more than 3000 meetings 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 investors, 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 region's growing role in worldwide networks of capital and trade.
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