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To reverse a decade of damaging total element efficiency, regional labour market policy is shifting from simple task production to managing active workforce transitions. Federal governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up workers for emerging roles. Workplace-based knowing and apprenticeship-style paths are ending up being more typical as companies incorporate AI tools into day-to-day workflows.
With oil costs anticipated to average $55-60 per barrel in 2026, regional federal governments are intensifying their concentrate on expenditure discipline and private capital mobilisation. Financial policy is rotating toward the monetisation of state-owned possessions in logistics, energies, and desalination to redirect funds towards higher-impact financial investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus remains on enhancing non-oil income structures.
PwC Middle East economic policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the priority is strengthening economic strength through more safe and secure trade and financial investment relationships, effective AI implementation, managed labor force shifts and disciplined financial policy in a more difficult and fragmented global environment.".
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 restored investment momentum, according to the newest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most international areas peers next year, with regional GDP projection 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 rising investment in technology and AI-related facilities.
Oil earnings will be under pressure in the very first half of 2026, production is expected to rise once again in the 2nd half of 2026, supporting the area'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 commercial expansion and policy reforms, including eased foreign ownership rules that aim to stimulate additional investment. The financial deficit is predicted to widen to 5.6% of GDP next year amid softer oil rates, while the current five-year lease freeze in Riyadh intends to ease inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of efficiency, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and monetary services stay key growth chauffeurs, 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 once again in the 2nd half of 2026, complementing continuous investment in facilities, innovation and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has been available in structure diverse, durable and internationally competitive economies.
Driving Dubai Corporate Growth through InnovationScott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust demand and rising investment, even as financial pressures increase.""The UAE continues to gain from strong domestic basics, a sharp uplift in federal government spending and sustained diversification efforts.
Driving Dubai Corporate Growth through InnovationWhat identifies 2026 from preceding years is not just the velocity of technological change, though that velocity is genuine, but rather a basic shift in how business envisage their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, but this development masks a more extensive transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss duty, and contribute to competitive distinction. In 2026, the most successful GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with international service results. This shift from execution to ownership represents maybe the single most significant tactical recalibration in the GCC model's evolution.
Today, we're convening more than 3000 meetings 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 investors, companies, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing role in worldwide networks of capital and trade.
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