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To reverse a years of deteriorating total element productivity, local labour market policy is moving from easy task creation to handling active workforce transitions. Governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip workers for emerging roles. Workplace-based knowing and apprenticeship-style pathways are ending up being more common as companies integrate AI tools into day-to-day workflows.
With oil costs anticipated to typical $55-60 per barrel in 2026, local federal governments are heightening their focus on expenditure discipline and personal capital mobilisation. Financial policy is pivoting towards the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds towards higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus remains on strengthening non-oil earnings frameworks.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the top priority is reinforcing financial resilience through more safe trade and investment relationships, efficient AI release, managed labor force shifts and disciplined financial policy in a more challenging and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector efficiency, resilient domestic demand and restored financial investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to surpass most global areas peers next year, with regional GDP projection to grow by 4.4%. Across the GCC, non-energy activity is predicted to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in technology and AI-related facilities.
Oil profits will be under pressure in the first half of 2026, production is expected to increase once again in the second half of 2026, supporting the region's medium-term outlook, it specified. Saudi Arabia will stay a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by commercial expansion and policy reforms, consisting of eased foreign ownership rules that intend to stimulate additional financial investment. The financial deficit is forecasted to widen to 5.6% of GDP next year amid softer oil costs, while the current five-year lease freeze in Riyadh intends to reduce inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise 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 monetary services stay essential growth drivers, supported by population development and continual domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.
Oil production is anticipated to pick up once again in the 2nd half of 2026, matching continuous financial investment in infrastructure, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has been available in structure varied, resistant and internationally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is gaining pace, supported by robust need and rising financial investment, even as fiscal pressures increase.""The UAE continues to take advantage of strong domestic fundamentals, a sharp uplift in government costs and continual diversity efforts.
Optimising Operational Efficiency through Strategic Market ResearchWhat distinguishes 2026 from preceding years is not merely the velocity of technological modification, though that velocity is real, but rather an essential shift in how business envisage their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this growth masks a more profound improvement.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most successful GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with worldwide business results. This shift from execution to ownership represents perhaps the single most considerable tactical recalibration in the GCC design's development.
Today, we're assembling more than 3000 conferences 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 investors, business, exchanges, and policymakers to discuss what is altering in the region, and what follows, consisting of the expansion and ongoing development of the Gulf's capital markets, and the region's growing function in international networks of capital and trade.
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