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To reverse a years of compromising overall element productivity, local labour market policy is shifting from basic job creation to handling active workforce transitions. Governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip workers for emerging roles. Workplace-based knowing and apprenticeship-style paths are ending up being more typical as firms integrate AI tools into day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, regional governments are intensifying their focus on expense discipline and private 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 by means of sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on enhancing non-oil earnings structures.
PwC Middle East financial policy and strategy partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on shipment. In 2026, the top priority is enhancing economic resilience through more secure trade and investment relationships, reliable AI implementation, handled 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 region's financial expansion in 2026, supported by strong private-sector efficiency, durable domestic need and renewed investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most international areas peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in technology and AI-related facilities.
Oil profits will be under pressure in the very first half of 2026, production is anticipated to rise 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 projection to grow 4.3% in 2026.
Development will be supported by commercial expansion and policy reforms, consisting of reduced foreign ownership rules that intend to stimulate additional investment. The fiscal deficit is predicted to expand to 5.6% of GDP next year amidst softer oil prices, while the current five-year lease freeze in Riyadh aims to reduce inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of efficiency, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services stay essential growth chauffeurs, supported by population growth and continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to get again in the second half of 2026, complementing continuous investment in infrastructure, innovation and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has come in building diverse, resilient and worldwide competitive economies.
Achieving Operational Excellence in the Middle EastScott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is getting speed, supported by robust need and increasing investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic basics, a sharp uplift in government spending and continual diversification efforts.
Achieving Operational Excellence in the Middle EastWhat differentiates 2026 from preceding years is not merely the acceleration of technological change, though that velocity is real, but rather a basic shift in how enterprises develop of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this development masks a more profound transformation.
Instead, they ask whether these centers drive innovation, own profit-and-loss obligation, and add to competitive differentiation. In 2026, the most successful GCCs will act like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with international company results. This shift from execution to ownership represents perhaps the single most significant tactical recalibration in the GCC design's evolution.
This week, we're convening more than 3000 meetings 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 bringing together investors, companies, exchanges, and policymakers to discuss what is changing in the area, and what follows, including the growth and ongoing development of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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