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To reverse a years of deteriorating total element performance, local labour market policy is moving from basic job creation to handling active labor force shifts. Federal governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip employees for emerging roles. Workplace-based learning and apprenticeship-style pathways are ending up being more common as companies incorporate AI tools into everyday workflows.
With oil prices forecasted to typical $55-60 per barrel in 2026, local federal governments are magnifying their focus on expenditure discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned assets in logistics, utilities, and desalination to reroute funds towards higher-impact investments. While loaning via sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus remains on strengthening non-oil revenue frameworks.
PwC Middle East financial policy and method partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on shipment. In 2026, the priority is enhancing financial durability through more protected trade and investment relationships, efficient AI release, managed labor force transitions and disciplined fiscal 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 efficiency, resistant domestic demand and renewed financial investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outperform most international areas peers next year, with local GDP projection to grow by 4.4%. Across the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing investment in innovation and AI-related facilities.
Although oil revenues will be under pressure in the very first half of 2026, production is anticipated to rise once 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 forecast to grow 4.3% in 2026.
Growth will be supported by industrial expansion and policy reforms, including reduced foreign ownership guidelines that intend to stimulate more investment. The fiscal deficit is predicted to broaden to 5.6% of GDP next year amidst softer oil rates, while the recent five-year rent freeze in Riyadh intends to ease inflationary pressures, though it may constrain future housing 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 broaden. Tourist, trade and financial services remain essential development chauffeurs, supported by population growth and continual domestic demand. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.
Oil production is anticipated to choose up again in the second half of 2026, complementing ongoing financial investment in facilities, technology and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has come in structure diverse, resilient and internationally competitive economies.
How Qatar's Regulatory Shifts Are Empowering Tech StartupsScott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is acquiring pace, supported by robust demand and rising 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 diversification efforts.
What distinguishes 2026 from preceding years is not just the acceleration of technological modification, though that velocity is real, but rather an essential shift in how business conceive of their GCCs' purpose. The is expected to grow to four hundred thirteen billion dollars by 2040, but this growth masks a more profound 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 behave like internal startups, agile, cross-functional, insight-driven, and deeply aligned with worldwide service results. This shift from execution to ownership represents possibly the single most considerable strategic recalibration in the GCC design's advancement.
This week, we're convening more than 3000 meetings between investors and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, business, exchanges, and policymakers to discuss what is altering in the region, and what follows, consisting of the expansion and continuous advancement of the Gulf's capital markets, and the region's growing function in international networks of capital and trade.
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