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To reverse a decade of compromising total element productivity, local labour market policy is shifting from simple task production to managing active labor force transitions. Governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are ending up being more common as companies integrate AI tools into everyday workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, local governments are heightening their concentrate on expenditure discipline and personal capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds towards higher-impact financial investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to money strategic deficits, the focus stays on strengthening non-oil income structures.
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 shipment. In 2026, the concern is enhancing economic durability through more safe trade and investment relationships, effective AI release, handled labor force transitions and disciplined financial policy in a more tough and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector efficiency, 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 worldwide areas peers next year, with regional GDP forecast to grow by 4.4%. Throughout 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 technology and AI-related infrastructure.
Oil earnings will be under pressure in the very 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 stated. 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 growth and policy reforms, including reduced foreign ownership rules that intend to stimulate more financial investment. The financial deficit is predicted to broaden to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year lease freeze in Riyadh intends to alleviate inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and monetary services remain key development chauffeurs, supported by population growth and continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.
Oil production is anticipated to pick up again in the 2nd half of 2026, complementing ongoing financial investment in infrastructure, innovation and global trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has actually come in structure diverse, durable and globally competitive economies.
Is Your Shared Service Center Really Including Worth?Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is acquiring rate, supported by robust need and rising investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic principles, a sharp uplift in federal government costs and sustained diversification efforts.
What identifies 2026 from preceding years is not just the velocity of technological modification, though that velocity is genuine, but rather a fundamental shift in how business envisage their GCCs' function. The is expected 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 responsibility, and add to competitive distinction. In 2026, the most successful GCCs will act like internal startups, agile, cross-functional, insight-driven, and deeply aligned with worldwide service outcomes. This shift from execution to ownership represents maybe the single most considerable strategic recalibration in the GCC design's evolution.
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 uniting financiers, business, exchanges, and policymakers to discuss what is changing in the region, and what comes next, consisting of the growth and ongoing advancement of the Gulf's capital markets, and the region's growing function in international networks of capital and trade.
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