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To reverse a years of weakening overall factor performance, local labour market policy is shifting from easy task development to handling active workforce shifts. Federal governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip employees for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more typical as firms integrate AI tools into day-to-day workflows.
With oil rates forecasted to typical $55-60 per barrel in 2026, local governments are intensifying their concentrate on expenditure discipline and personal capital mobilisation. Financial policy is rotating towards the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds towards higher-impact financial investments. While loaning through sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus remains on reinforcing non-oil profits frameworks.
PwC Middle East financial policy and method partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the concern is strengthening financial strength through more safe and secure trade and investment relationships, efficient AI release, handled workforce transitions and disciplined fiscal policy in a more challenging and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic expansion in 2026, supported by strong private-sector performance, resilient domestic need and restored investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outperform most worldwide regions peers next year, with local GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is predicted to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in innovation and AI-related facilities.
Oil revenues will be under pressure in the very first half of 2026, production is anticipated to rise once again in the second half of 2026, supporting the area'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, consisting of relieved foreign ownership guidelines that intend to stimulate more investment. The fiscal deficit is forecasted to broaden to 5.6% of GDP next year amidst softer oil costs, while the recent five-year lease freeze in Riyadh aims to relieve inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of efficiency, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and monetary services remain key growth chauffeurs, supported by population development and sustained domestic need. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.
Oil production is expected to get again in the 2nd half of 2026, matching continuous financial investment in infrastructure, innovation and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has actually come in structure varied, resistant and internationally competitive economies.
Using the Development of Saudi Arabia's New HubsScott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is acquiring rate, supported by robust demand and increasing investment, even as fiscal pressures increase.""The UAE continues to take advantage of solid domestic basics, a sharp uplift in government costs and sustained diversification efforts.
Using the Development of Saudi Arabia's New HubsWhat distinguishes 2026 from preceding years is not merely the acceleration of technological change, though that acceleration is real, however rather a fundamental shift in how business conceive of their GCCs' purpose. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, but this growth masks a more profound change.
Rather, they ask whether these centers drive development, own profit-and-loss responsibility, and add to competitive differentiation. In 2026, the most successful GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply aligned with global organization outcomes. This shift from execution to ownership represents maybe the single most considerable strategic recalibration in the GCC model's development.
This week, we're assembling more than 3000 meetings in between financiers 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 area, and what follows, consisting of the growth and ongoing advancement of the Gulf's capital markets, and the region's growing function in worldwide networks of capital and trade.
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