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To reverse a years of weakening overall aspect productivity, regional labour market policy is moving from easy task development to managing active workforce transitions. Governments and companies are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up employees for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more typical as firms integrate AI tools into daily workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local federal governments are heightening their focus on expense discipline and private capital mobilisation. Financial policy is rotating toward the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds towards higher-impact financial investments. While borrowing via sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus stays on reinforcing non-oil profits frameworks.
PwC Middle East economic policy and strategy partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the priority is enhancing financial durability through more safe and secure trade and investment relationships, effective AI release, handled labor force transitions and disciplined financial policy in a more tough and fragmented international environment.".

Saudi Arabia and UAE are poised to lead the Gulf region's economic expansion in 2026, supported by strong private-sector performance, durable domestic demand and renewed financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most global regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is forecasted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising financial investment in technology and AI-related infrastructure.
Oil incomes will be under pressure in the first half of 2026, production is anticipated to rise again in the second half of 2026, supporting the area's medium-term outlook, it specified. Saudi Arabia will stay a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including reduced foreign ownership rules that aim to stimulate further investment. The fiscal deficit is forecasted to broaden to 5.6% of GDP next year amid softer oil costs, while the current five-year lease freeze in Riyadh intends to relieve inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourism, trade and financial services remain essential growth chauffeurs, supported by population growth and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.

Oil production is expected to get again in the 2nd half of 2026, matching continuous investment in infrastructure, innovation and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has actually been available in structure varied, resistant and globally competitive economies.
Key Benefits of Strategic Growth for the GCCScott Livermore, ICAEW Economic Advisor, and Chief Economist and Managing 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 rising investment, even as fiscal pressures increase.""The UAE continues to gain from solid domestic basics, a sharp uplift in federal government spending and continual diversification efforts.
Key Benefits of Strategic Growth for the GCCWhat distinguishes 2026 from preceding years is not simply the acceleration of technological change, though that acceleration is genuine, but rather a fundamental shift in how business envisage their GCCs' purpose. The is expected 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 responsibility, and contribute to competitive differentiation. In 2026, the most successful GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply aligned with worldwide business results. This shift from execution to ownership represents maybe the single most substantial strategic recalibration in the GCC model's advancement.
Today, we're convening more than 3000 meetings in between financiers and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, business, exchanges, and policymakers to discuss what is changing in the region, and what follows, including the growth and ongoing advancement of the Gulf's capital markets, and the area's growing function in worldwide networks of capital and trade.
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