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To reverse a years of deteriorating overall factor productivity, regional labour market policy is shifting from easy task creation to managing active labor force transitions. Governments and employers are scaling short, modular training programs and micro-credentials in data analytics and digital operations to gear up workers for emerging roles. Workplace-based learning and apprenticeship-style paths are ending up being more common as firms integrate AI tools into day-to-day workflows.
With oil prices anticipated to average $55-60 per barrel in 2026, local federal governments are magnifying their focus on expense discipline and private capital mobilisation. Financial policy is rotating toward the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds toward higher-impact investments. While borrowing by means of sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus remains on strengthening non-oil revenue structures.
PwC Middle East economic policy and technique partner Jing Teow said: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the concern is reinforcing economic strength through more safe trade and investment relationships, efficient AI release, managed workforce shifts and disciplined fiscal policy in a more difficult 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 renewed investment momentum, according to the most recent ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most global areas peers next year, with regional GDP projection to grow by 4.4%. Across the GCC, non-energy activity is predicted to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing investment in technology and AI-related infrastructure.
Oil revenues will be under pressure in the very first half of 2026, production is expected to increase once again in the 2nd half of 2026, supporting the region's medium-term outlook, it specified. Saudi Arabia will remain a major factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Development will be supported by industrial expansion and policy reforms, including eased foreign ownership rules that aim to promote further financial investment. The fiscal deficit is projected to expand to 5.6% of GDP next year in the middle of softer oil rates, while the current five-year rent freeze in Riyadh intends to relieve inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of performance, with GDP projection to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourist, trade and financial services stay crucial growth chauffeurs, supported by population growth and continual domestic need. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.

Oil production is anticipated to get once again in the 2nd half of 2026, complementing ongoing financial investment in facilities, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has can be found in structure varied, durable and worldwide competitive economies.
Accelerating Dubai Industrial Growth through InnovationScott 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 gaining pace, supported by robust need and increasing investment, even as fiscal pressures increase.""The UAE continues to gain from strong domestic fundamentals, a sharp uplift in government spending and continual diversification efforts.
Accelerating Dubai Industrial Growth through InnovationWhat identifies 2026 from preceding years is not merely the velocity of technological modification, though that velocity is real, but rather a fundamental shift in how enterprises envisage their GCCs' function. The is anticipated to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more profound improvement.
Rather, they ask whether these centers drive development, own profit-and-loss duty, and contribute to competitive differentiation. In 2026, the most effective GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with global organization results. This shift from execution to ownership represents maybe the single most considerable strategic recalibration in the GCC design's advancement.
Today, we're assembling more than 3000 conferences between investors and 119 Gulf-listed business with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're uniting financiers, business, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the expansion and continuous advancement of the Gulf's capital markets, and the region's growing role in global networks of capital and trade.
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