Emerging Strategic Shifts Defining the 2026 GCC Economy thumbnail

Emerging Strategic Shifts Defining the 2026 GCC Economy

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El Houni asked the speakers to share what keeps them "on-point" at work and what suggestions they have for the audience. Hamad Al Hajri, CEO and Founder of Snoonu said it was "crucial to build boundaries" between work and individual life and take short vacations to "detach" from the office.

Karim Benkirane, CCO of Du, said: "If you make the people you work with delighted, you will make the customer delighted, who will then make the shareholders pleased."Ambareen Musa, CEO for Revolut GCC, said the capability to "not worry" is the key to finding a solution for problems.

This week, we're assembling more than 3000 meetings in 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, business, exchanges, and policymakers to discuss what is altering in the area, and what comes next, including the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing role in global networks of capital and trade.

Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector performance, resilient domestic need and renewed investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most global areas peers next year, with regional 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, improving credit conditions and increasing investment in technology and AI-related infrastructure.

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Emerging Strategic Trends Defining the 2026 Regional Market

Oil earnings will be under pressure in the very first half of 2026, production is anticipated to increase again in the second half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will remain a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.

Growth will be supported by industrial growth and policy reforms, consisting of reduced foreign ownership guidelines that aim to promote more financial investment. The fiscal deficit is forecasted to widen to 5.6% of GDP next year amid softer oil rates, while the current five-year lease freeze in Riyadh aims to alleviate inflationary pressures, though it might constrain future real estate supply.

Strong domestic fundamentalsThe UAE is also positioned for another strong year of performance, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay key growth motorists, supported by population development and continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.

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Oil production is expected to get once again in the second half of 2026, complementing continuous investment in infrastructure, technology and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has come in structure diverse, resilient and internationally competitive economies.

Scott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is gaining speed, supported by robust need and increasing investment, even as financial pressures increase.""The UAE continues to gain from strong domestic principles, a sharp uplift in federal government costs and sustained diversity efforts.

Industrial Excellence: a Key Pillar for Regional Growth

GCC countries are pivoting towards a strategy of 'resilience over growth' getting in 2026, as the region gets ready for a worldwide landscape specified by softer oil costs, geopolitical fragmentation, and the fast transition to an AI-enabled economy. According to a new regional outlook by PwC, the GCC is transferring to insulate its development from external shocks by deepening global trade integration, protecting industrial supply chains, and executing a definitive shift from innovation aspiration to operational implementation.

Operational Excellence: a Key Driver for Regional Success
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Negotiations for Free Trade Agreements with China, the EU, and Japan are advancing, while talks with the UK have actually gotten in final drafting stages. The region is significantly placing itself as a main center for east-west trade through the IndiaMiddle EastEurope Economic Corridor (IMEC). To support domestic manufacturing, securing vital minerals has actually become a strategic top priority.