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To reverse a decade of weakening overall element performance, regional 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 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 day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, regional federal governments are magnifying their focus on expense discipline and private capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds towards higher-impact financial investments. While borrowing via sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus stays on enhancing non-oil income structures.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now concentrated on delivery. In 2026, the priority is enhancing financial resilience through more protected trade and investment relationships, efficient AI implementation, handled workforce shifts and disciplined fiscal policy in a more difficult and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's financial growth in 2026, supported by strong private-sector performance, resilient domestic need and restored investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to surpass most worldwide areas peers next year, with regional GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and increasing investment in technology and AI-related infrastructure.
Oil earnings will be under pressure in the first half of 2026, production is anticipated to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will remain a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by industrial growth and policy reforms, consisting of relieved foreign ownership guidelines that intend to promote more investment. The fiscal deficit is forecasted to widen to 5.6% of GDP next year amid softer oil rates, while the current five-year lease freeze in Riyadh aims to ease inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of efficiency, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and monetary services stay key development drivers, supported by population development and sustained domestic need. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.
Oil production is anticipated to get once again in the second half of 2026, complementing ongoing investment in infrastructure, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook reinforces how far the GCC has been available in building diverse, resilient and worldwide competitive economies.
The Development of Third-Party Risk Management in the GCCScott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is getting 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 costs and sustained diversity efforts.
The Development of Third-Party Risk Management in the GCCWhat distinguishes 2026 from preceding years is not simply the velocity of technological modification, though that velocity is genuine, however rather an essential shift in how enterprises conceive of their GCCs' purpose. The is expected to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more profound improvement.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive distinction. In 2026, the most successful GCCs will act like internal start-ups, agile, 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 design's evolution.
This week, we're assembling more than 3000 meetings between investors 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 area, and what follows, consisting of the expansion and ongoing development of the Gulf's capital markets, and the region's growing function in international networks of capital and trade.
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