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To reverse a decade of deteriorating overall factor performance, regional labour market policy is shifting from basic job production to managing active workforce transitions. Federal governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip workers for emerging roles. Workplace-based learning and apprenticeship-style paths are becoming more typical as companies incorporate AI tools into daily workflows.
With oil costs forecasted to average $55-60 per barrel in 2026, local federal governments are intensifying their concentrate on expense discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds toward higher-impact investments. While borrowing via sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus stays on strengthening non-oil revenue 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 delivery. In 2026, the priority is reinforcing economic resilience through more secure trade and investment relationships, reliable AI deployment, managed workforce transitions and disciplined financial policy in a more tough 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 efficiency, resilient domestic demand and renewed investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most global areas peers next year, with regional GDP projection 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 increasing financial investment in innovation and AI-related infrastructure.
Oil incomes will be under pressure in the very first half of 2026, production is anticipated to rise again in the second 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.
Development will be supported by industrial expansion and policy reforms, consisting of eased foreign ownership guidelines that intend to stimulate additional investment. The fiscal deficit is forecasted to broaden to 5.6% of GDP next year in the middle of softer oil rates, while the recent 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 placed 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 remain essential growth chauffeurs, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to get again in the 2nd half of 2026, complementing ongoing investment in infrastructure, innovation and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has actually been available in building diverse, durable 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 entering 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust need and rising financial investment, even as financial pressures increase.""The UAE continues to benefit from solid domestic basics, a sharp uplift in federal government spending and sustained diversification efforts.
The Advancement of Third-Party Danger Management in the GCCWhat differentiates 2026 from preceding years is not simply the acceleration of technological modification, though that velocity is genuine, but rather an essential shift in how business conceive of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more profound transformation.
Rather, they ask whether these centers drive innovation, own profit-and-loss duty, and add to competitive distinction. In 2026, the most successful GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply lined up with international company results. This shift from execution to ownership represents possibly the single most substantial tactical recalibration in the GCC design's advancement.
This week, we're assembling more than 3000 conferences 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 financiers, business, 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 area's growing function in worldwide networks of capital and trade.
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