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To reverse a years of damaging total aspect productivity, regional labour market policy is shifting from basic task production to managing active workforce transitions. Governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip employees for emerging roles. Workplace-based knowing and apprenticeship-style paths are ending up being more common as companies integrate AI tools into daily workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, regional governments are magnifying their focus on expense discipline and personal capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds towards higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus remains on strengthening non-oil revenue structures.
PwC Middle East economic policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now concentrated on delivery. In 2026, the priority is strengthening economic durability through more protected trade and investment relationships, efficient AI implementation, handled workforce shifts and disciplined fiscal policy in a more tough and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector efficiency, resilient domestic demand and renewed financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most worldwide areas peers next year, with regional 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 increasing financial investment in technology and AI-related infrastructure.
Although oil profits will be under pressure in the very first half of 2026, production is expected to rise again in the 2nd 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 alleviated foreign ownership rules that aim to promote further investment. The fiscal deficit is predicted to widen to 5.6% of GDP next year in the middle of softer oil rates, while the current five-year rent 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 efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and monetary services remain crucial development drivers, supported by population growth and sustained domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.
Oil production is expected to pick up once again in the 2nd half of 2026, matching continuous investment in facilities, innovation and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has been available in building diverse, resilient and globally competitive economies.
The Benefits of Strategic Growth in DubaiScott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is getting rate, supported by robust need and rising financial investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic principles, a sharp uplift in government costs and sustained diversification efforts.
What differentiates 2026 from preceding years is not simply the velocity of technological change, though that velocity is genuine, however rather a fundamental shift in how enterprises conceive of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more profound change.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive differentiation. In 2026, the most effective GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with worldwide company outcomes. This shift from execution to ownership represents possibly the single most considerable tactical recalibration in the GCC model's evolution.
This week, we're convening more than 3000 conferences between financiers 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 changing in the region, and what follows, including the expansion and ongoing development of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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