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To reverse a years of deteriorating overall factor productivity, local labour market policy is moving from easy job development to managing active workforce transitions. Governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to equip workers for emerging roles. Workplace-based learning and apprenticeship-style paths are becoming more typical as firms integrate AI tools into day-to-day workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, local federal governments are magnifying their focus on expenditure discipline and private capital mobilisation. Fiscal policy is pivoting towards the monetisation of state-owned possessions in logistics, utilities, and desalination to reroute funds toward higher-impact investments. While loaning through sukuk and sustainability-linked bonds is anticipated to increase to money tactical deficits, the focus remains on reinforcing non-oil profits structures.
PwC Middle East financial policy and technique 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 strengthening economic durability through more safe trade and investment relationships, effective AI release, managed labor force transitions and disciplined financial policy in a more challenging and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's financial expansion in 2026, supported by strong private-sector performance, resilient 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 surpass most global areas peers next year, with regional GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in innovation and AI-related facilities.
Although oil incomes will be under pressure in the first half of 2026, production is expected to increase once again in the 2nd half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will stay a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, consisting of reduced foreign ownership guidelines that aim to promote additional investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year amidst softer oil prices, while the current five-year lease freeze in Riyadh intends to alleviate inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services stay key development drivers, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, reflecting broad-based non-oil strength.
Oil production is expected to get once again in the second half of 2026, complementing ongoing financial investment in infrastructure, technology and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually can be found in structure varied, durable and globally competitive economies.
Scott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust demand and increasing financial investment, even as financial pressures increase.""The UAE continues to take advantage of strong domestic fundamentals, a sharp uplift in government costs and sustained diversification efforts.
How Analytics Redefines GCC Enterprise VisionWhat distinguishes 2026 from preceding years is not merely the velocity of technological change, though that acceleration is real, however rather a basic shift in how enterprises envisage their GCCs' function. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, however this development masks a more extensive change.
Rather, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply lined up with global service results. This shift from execution to ownership represents possibly the single most significant tactical recalibration in the GCC design's evolution.
This week, we're assembling more than 3000 meetings 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 combining financiers, companies, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the growth and ongoing development of the Gulf's capital markets, and the region's growing function in worldwide networks of capital and trade.
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