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To reverse a years of compromising total element performance, local labour market policy is moving from simple task creation to managing active labor force shifts. Governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to equip workers for emerging functions. Workplace-based learning and apprenticeship-style paths are becoming more typical as companies integrate AI tools into everyday workflows.
With oil costs anticipated to average $55-60 per barrel in 2026, local federal governments are intensifying their focus on expenditure discipline and private capital mobilisation. Financial policy is pivoting towards the monetisation of state-owned assets in logistics, energies, and desalination to redirect funds toward higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is anticipated to increase to fund strategic deficits, the focus remains on strengthening non-oil profits structures.
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 enhancing economic durability through more safe trade and financial investment relationships, efficient AI release, handled workforce shifts and disciplined fiscal policy in a more challenging and fragmented worldwide environment.".

Saudi Arabia and UAE are poised to lead the Gulf area's economic expansion in 2026, supported by strong private-sector performance, durable domestic demand and restored financial investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to outshine most international regions peers next year, with local GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in innovation and AI-related facilities.
Oil revenues will be under pressure in the first half of 2026, production is anticipated to increase again in the second half of 2026, supporting the region's medium-term outlook, it specified. 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 growth and policy reforms, consisting of alleviated foreign ownership guidelines that aim to promote additional financial investment. The financial deficit is predicted to widen to 5.6% of GDP next year amidst softer oil costs, while the recent five-year rent freeze in Riyadh aims to reduce inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of efficiency, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services stay essential development chauffeurs, supported by population development 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 anticipated to get again in the 2nd half of 2026, matching continuous financial investment in facilities, innovation and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has come in building varied, resistant and globally competitive economies.
Scott Livermore, ICAEW Economic Advisor, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is gaining speed, supported by robust demand and increasing financial investment, even as fiscal pressures increase.""The UAE continues to gain from solid domestic basics, a sharp uplift in government spending and sustained diversification efforts.
What identifies 2026 from preceding years is not merely the velocity of technological change, though that velocity is genuine, however rather a fundamental shift in how enterprises develop of their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more profound change.
Rather, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most successful GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with international company results. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC design's advancement.
This week, we're assembling more than 3000 meetings in 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 combining financiers, business, exchanges, and policymakers to discuss what is altering in the area, and what comes next, consisting of the growth and continuous development of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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