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To reverse a decade of weakening overall factor productivity, local labour market policy is shifting from easy job development to managing active workforce shifts. Governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up workers for emerging roles. Workplace-based knowing and apprenticeship-style paths are ending up being more common as companies integrate AI tools into day-to-day workflows.
With oil rates anticipated to typical $55-60 per barrel in 2026, regional governments are intensifying their concentrate on expense discipline and private capital mobilisation. Financial policy is rotating 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 tactical deficits, the focus stays on strengthening non-oil income frameworks.
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 shipment. In 2026, the concern is reinforcing financial strength through more protected trade and investment relationships, reliable AI deployment, handled workforce shifts and disciplined financial policy in a more tough 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 performance, resistant domestic need and renewed financial investment momentum, according to the newest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most worldwide regions peers next year, with regional GDP projection to grow by 4.4%. Across the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising investment in technology and AI-related facilities.
Oil earnings will be under pressure in the very 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 mentioned. Saudi Arabia will remain a major contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by industrial growth and policy reforms, including relieved foreign ownership guidelines that intend to promote more financial investment. The fiscal deficit is forecasted to broaden to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year rent freeze in Riyadh intends to relieve inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services stay crucial development motorists, supported by population growth and sustained domestic demand. 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 second half of 2026, complementing continuous investment in facilities, technology and worldwide 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 diverse, resilient and globally competitive economies.
Upskilling the UAE Labor Force for a Post-AI EconomyScott Livermore, ICAEW Economic Consultant, and Chief Economist and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is getting speed, supported by robust need and increasing financial investment, even as fiscal pressures increase.""The UAE continues to benefit from solid domestic principles, a sharp uplift in government spending and continual diversification efforts.
Upskilling the UAE Labor Force for a Post-AI EconomyWhat differentiates 2026 from preceding years is not just the velocity of technological change, though that acceleration is real, but rather an essential shift in how enterprises conceive of their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this development masks a more extensive change.
Instead, they ask whether these centers drive development, own profit-and-loss duty, and add to competitive differentiation. In 2026, the most effective GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply lined up with international service results. This shift from execution to ownership represents perhaps the single most substantial strategic recalibration in the GCC model's evolution.
This week, we're assembling more than 3000 conferences between financiers and 119 Gulf-listed business with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together financiers, companies, exchanges, and policymakers to discuss what is changing in the area, and what follows, including the growth and continuous advancement of the Gulf's capital markets, and the area's growing function in global networks of capital and trade.
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