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To reverse a decade of compromising overall factor efficiency, local labour market policy is moving from basic task production to handling active labor force shifts. Governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip employees for emerging functions. Workplace-based knowing and apprenticeship-style pathways are ending up being more common as firms incorporate AI tools into daily workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, regional governments are heightening their concentrate on expense discipline and personal capital mobilisation. Financial policy is rotating toward the monetisation of state-owned possessions in logistics, utilities, and desalination to reroute funds towards higher-impact financial investments. While borrowing via sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on enhancing non-oil profits frameworks.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the priority is enhancing financial resilience through more secure trade and financial investment relationships, efficient AI deployment, managed workforce shifts and disciplined financial policy in a more difficult and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector performance, resistant domestic demand and renewed financial investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to exceed most international regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving 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 anticipated to rise again in the second half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will remain a significant factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by industrial expansion and policy reforms, consisting of alleviated foreign ownership rules that aim to promote additional financial investment. The fiscal deficit is forecasted to expand to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year rent 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 efficiency, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services stay essential growth chauffeurs, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.
Oil production is expected to get again in the 2nd half of 2026, matching ongoing investment in infrastructure, technology and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has actually been available in structure diverse, resistant and worldwide competitive economies.
Building a Multi-Generational Skill Technique in Abu DhabiScott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust demand and rising financial investment, even as fiscal pressures increase.""The UAE continues to gain from solid domestic fundamentals, a sharp uplift in federal government spending and sustained diversity efforts.
What distinguishes 2026 from preceding years is not simply the acceleration of technological modification, though that velocity is genuine, but rather an essential shift in how enterprises envisage their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, but this development masks a more profound change.
Instead, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most effective GCCs will act like internal startups, agile, cross-functional, insight-driven, and deeply lined up with global business outcomes. This shift from execution to ownership represents maybe the single most substantial tactical recalibration in the GCC design's advancement.
Today, we're convening more than 3000 conferences 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 combining investors, business, exchanges, and policymakers to discuss what is altering in the area, and what follows, including the growth and ongoing advancement of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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