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To reverse a years of damaging total element productivity, local labour market policy is moving from basic task production to managing active labor force transitions. Governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up workers for emerging functions. Workplace-based knowing and apprenticeship-style paths are becoming more common as companies integrate AI tools into everyday workflows.
With oil costs anticipated to typical $55-60 per barrel in 2026, regional governments are magnifying their focus on expense discipline and personal capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned assets in logistics, utilities, and desalination to reroute funds towards higher-impact financial investments. While borrowing via sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus remains on enhancing non-oil profits frameworks.
PwC Middle East economic policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on shipment. In 2026, the concern is strengthening financial durability through more safe and secure trade and financial investment relationships, efficient AI implementation, managed workforce shifts and disciplined fiscal policy in a more challenging and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector efficiency, durable domestic need and restored investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most global regions peers next year, with regional 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 financial investment in technology and AI-related facilities.
Although oil incomes will be under pressure in the first half of 2026, production is expected to increase again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will stay a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by industrial growth and policy reforms, including reduced foreign ownership guidelines that intend to promote further financial investment. The fiscal deficit is predicted to widen to 5.6% of GDP next year amidst softer oil rates, while the recent five-year lease freeze in Riyadh intends to reduce inflationary pressures, though it might 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 monetary services remain essential growth motorists, supported by population growth and continual 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 get once again in the second half of 2026, complementing ongoing financial investment in facilities, innovation and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has can be found in structure diverse, resilient and worldwide competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Economist 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 need and increasing investment, even as financial pressures increase.""The UAE continues to gain from strong domestic principles, a sharp uplift in government spending and sustained diversity efforts.
Charting GCC Corporate Strategy in 2026What differentiates 2026 from preceding years is not merely the acceleration of technological change, though that velocity is real, however rather a basic shift in how enterprises envisage their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, however this development masks a more profound change.
Rather, they ask whether these centers drive innovation, own profit-and-loss responsibility, and contribute to competitive differentiation. In 2026, the most successful GCCs will act like internal start-ups, nimble, cross-functional, insight-driven, and deeply aligned with global organization results. This shift from execution to ownership represents maybe the single most substantial strategic recalibration in the GCC model's development.
This week, we're assembling more than 3000 conferences in between investors and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're uniting investors, companies, exchanges, and policymakers to discuss what is altering in the region, and what comes next, including the expansion and ongoing advancement of the Gulf's capital markets, and the region's growing function in global networks of capital and trade.
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