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To reverse a decade of damaging overall factor efficiency, regional labour market policy is moving from basic job production to handling active labor force shifts. Federal governments and companies are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up employees for emerging roles. Workplace-based knowing and apprenticeship-style paths are ending up being more common as firms incorporate AI tools into day-to-day workflows.
With oil costs anticipated to average $55-60 per barrel in 2026, regional governments are magnifying their focus on expense discipline and private capital mobilisation. Fiscal policy is rotating towards 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 anticipated to increase to money tactical deficits, the focus stays on strengthening non-oil revenue structures.
PwC Middle East economic policy and method partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the priority is enhancing financial strength through more protected trade and financial investment relationships, reliable AI implementation, managed workforce transitions and disciplined financial policy in a more difficult and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector performance, durable domestic need and restored investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most worldwide areas peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in technology and AI-related infrastructure.
Oil profits will be under pressure in the first half of 2026, production is expected to increase again in the second half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will remain a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by industrial growth and policy reforms, including relieved foreign ownership guidelines that aim to promote additional investment. The financial deficit is projected to expand to 5.6% of GDP next year amidst 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 efficiency, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and monetary services stay crucial development drivers, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is expected to get again in the 2nd half of 2026, matching ongoing financial investment in infrastructure, innovation and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has come in building varied, resistant and globally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is getting rate, supported by robust need and increasing financial investment, even as fiscal pressures increase.""The UAE continues to benefit from strong domestic basics, a sharp uplift in federal government costs and continual diversity efforts.
Moving Your Back Office to a High-Performance Gulf CenterWhat identifies 2026 from preceding years is not merely the velocity of technological modification, though that acceleration is genuine, but rather a basic shift in how enterprises envisage their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this growth masks a more extensive improvement.
Instead, they ask whether these centers drive development, own profit-and-loss responsibility, and contribute to competitive distinction. In 2026, the most successful GCCs will act like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with worldwide service results. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC design's development.
Today, we're assembling 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 uniting investors, business, exchanges, and policymakers to discuss what is changing in the region, and what comes next, consisting of the growth and ongoing development of the Gulf's capital markets, and the region's growing role in international networks of capital and trade.
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