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To reverse a decade of compromising total factor performance, local labour market policy is moving from easy job production to managing active labor force transitions. Federal governments and companies are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip employees for emerging roles. Workplace-based learning and apprenticeship-style paths are becoming more typical as companies integrate AI tools into daily workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, local governments are heightening their focus on expenditure discipline and personal capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds towards higher-impact investments. While loaning by means of sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus stays on reinforcing non-oil profits structures.
PwC Middle East financial policy and strategy partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the top priority is strengthening economic strength through more safe trade and investment relationships, efficient AI release, handled labor force shifts and disciplined financial policy in a more tough 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 efficiency, resilient domestic demand and renewed financial investment momentum, according to the newest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outperform most international regions peers next year, with local GDP forecast to grow by 4.4%. Across 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 innovation and AI-related infrastructure.
Although oil profits will be under pressure in the very first half of 2026, production is expected to increase 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.
Development will be supported by industrial growth and policy reforms, including reduced foreign ownership rules that aim to stimulate additional investment. The fiscal deficit is forecasted to broaden to 5.6% of GDP next year in the middle of softer oil rates, while the recent five-year rent freeze in Riyadh intends to relieve inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and financial services remain essential growth drivers, supported by population development 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 expected to get again in the 2nd half of 2026, complementing continuous investment in facilities, technology and worldwide trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually come in building varied, durable and internationally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are entering 2026 with strong structures. Saudi non-oil activity is gaining rate, supported by robust demand and increasing investment, even as financial pressures increase.""The UAE continues to gain from solid domestic basics, a sharp uplift in government costs and sustained diversification efforts.
Driving Dubai Corporate Expansion through StrategyWhat distinguishes 2026 from preceding years is not simply the velocity of technological modification, though that acceleration is real, but rather a fundamental shift in how enterprises envisage their GCCs' purpose. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this growth masks a more extensive transformation.
Instead, they ask whether these centers drive development, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most successful GCCs will act like internal startups, agile, cross-functional, insight-driven, and deeply aligned with international organization results. This shift from execution to ownership represents perhaps the single most significant strategic recalibration in the GCC model's advancement.
Today, we're assembling more than 3000 conferences between investors and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together financiers, business, exchanges, and policymakers to discuss what is altering in the area, and what comes next, consisting of the expansion and continuous development of the Gulf's capital markets, and the region's growing role in worldwide networks of capital and trade.
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