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To reverse a decade of weakening overall factor performance, regional labour market policy is moving from easy job production to handling active labor force transitions. Federal 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 paths are becoming more common as firms integrate AI tools into everyday workflows.
With oil costs forecasted to average $55-60 per barrel in 2026, local governments are heightening their concentrate on expense discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds toward higher-impact investments. While borrowing via sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus remains on reinforcing non-oil income frameworks.
PwC Middle East financial policy and technique partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the top priority is enhancing economic resilience through more protected trade and financial investment relationships, efficient AI release, handled workforce transitions 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 renewed financial investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most international regions 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, enhancing credit conditions and increasing investment in innovation and AI-related infrastructure.
Oil profits will be under pressure in the very first half of 2026, production is expected to increase again in the 2nd half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial growth and policy reforms, including alleviated foreign ownership guidelines that aim to promote further financial investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year amidst softer oil rates, while the current five-year lease freeze in Riyadh intends to alleviate inflationary pressures, though it might 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 expand. Tourist, trade and monetary services stay crucial development motorists, supported by population development and continual domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to pick up again in the second half of 2026, matching continuous financial investment in facilities, innovation and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has come in building varied, resilient and globally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is acquiring pace, supported by robust need and increasing investment, even as financial pressures increase.""The UAE continues to gain from solid domestic basics, a sharp uplift in federal government spending and continual diversity efforts.
Implementing Regional Business Frameworks for Scalable SuccessWhat identifies 2026 from preceding years is not simply the velocity of technological modification, though that velocity is real, but rather a basic shift in how business envisage their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this development masks a more profound change.
Instead, they ask whether these centers drive development, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most effective GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply aligned with international organization results. This shift from execution to ownership represents perhaps the single most significant strategic recalibration in the GCC model's evolution.
Today, we're convening more than 3000 meetings in between financiers and 119 Gulf-listed business with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, companies, exchanges, and policymakers to discuss what is altering in the region, and what comes next, including the growth 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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