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To reverse a years of damaging overall factor productivity, regional labour market policy is moving from simple task development to managing active workforce transitions. Governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up workers for emerging functions. Workplace-based learning and apprenticeship-style pathways are ending up being more typical as companies integrate AI tools into daily workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, regional governments are intensifying their concentrate on expenditure discipline and private capital mobilisation. Fiscal policy is rotating toward the monetisation of state-owned assets in logistics, energies, and desalination to reroute funds towards higher-impact investments. While loaning through sukuk and sustainability-linked bonds is expected to increase to fund strategic deficits, the focus stays on reinforcing non-oil income frameworks.
PwC Middle East financial policy and technique 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 enhancing economic strength through more protected trade and investment relationships, efficient AI deployment, handled labor force transitions and disciplined fiscal policy in a more tough and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's economic growth in 2026, supported by strong private-sector efficiency, durable domestic demand and restored investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most global areas peers next year, with local GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in technology and AI-related facilities.
Oil incomes will be under pressure in the first half of 2026, production is expected to rise once again in the second half of 2026, supporting the area's medium-term outlook, it mentioned. 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 expansion and policy reforms, consisting of eased foreign ownership guidelines that intend to stimulate additional investment. The fiscal deficit is predicted to broaden to 5.6% of GDP next year in the middle of softer oil rates, while the current five-year lease freeze in Riyadh intends to reduce 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 forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and monetary services remain key development drivers, supported by population growth and continual 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, matching ongoing financial investment in infrastructure, technology and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook enhances how far the GCC has actually come in building diverse, resilient and globally competitive economies.
Redefining Worker Benefits for a New UAE EraScott Livermore, ICAEW Economic Advisor, and Chief Economist and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is acquiring pace, supported by robust demand and increasing investment, even as financial pressures increase.""The UAE continues to benefit from solid domestic principles, a sharp uplift in federal government spending and sustained diversity efforts.
What identifies 2026 from preceding years is not merely the acceleration of technological modification, though that acceleration is real, but rather a fundamental shift in how enterprises envisage their GCCs' purpose. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more extensive improvement.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most effective GCCs will act like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with global company results. This shift from execution to ownership represents perhaps the single most considerable strategic 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 combining financiers, companies, exchanges, and policymakers to discuss what is altering in the region, and what comes next, including 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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