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To reverse a decade of deteriorating overall aspect productivity, regional labour market policy is shifting from simple task creation to managing active workforce transitions. Governments and employers are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up employees for emerging functions. Workplace-based knowing and apprenticeship-style paths are becoming more common as firms integrate AI tools into everyday workflows.
With oil costs forecasted to average $55-60 per barrel in 2026, local federal governments are intensifying their focus on expense discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned properties in logistics, utilities, and desalination to redirect funds toward higher-impact financial investments. While borrowing by means of sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus stays on reinforcing non-oil income structures.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the priority is strengthening financial durability through more protected trade and financial investment relationships, reliable AI deployment, handled labor force shifts and disciplined fiscal policy in a more challenging 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, 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 expected to exceed most worldwide areas peers next year, with regional GDP projection to grow by 4.4%. Throughout the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in innovation and AI-related facilities.
Although 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 specified. Saudi Arabia will remain a significant contributor to GCC momentum, with GDP forecast to grow 4.3% in 2026.

Development will be supported by commercial expansion and policy reforms, consisting of eased foreign ownership guidelines that intend to stimulate more investment. The fiscal deficit is predicted to expand to 5.6% of GDP next year amid softer oil rates, while the current five-year rent freeze in Riyadh aims to reduce inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise placed for another strong year of performance, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services remain essential development chauffeurs, supported by population development and sustained domestic demand. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.
Oil production is anticipated to choose up again in the second half of 2026, matching ongoing financial investment in infrastructure, technology and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook strengthens how far the GCC has actually can be found in structure diverse, resilient and internationally competitive economies.
How to Utilize GCC Research for 2026 GrowthScott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are going into 2026 with strong foundations. Saudi non-oil activity is gaining speed, supported by robust demand and rising investment, even as fiscal pressures increase.""The UAE continues to take advantage of strong domestic basics, a sharp uplift in government spending and sustained diversification efforts.
How to Utilize GCC Research for 2026 GrowthWhat distinguishes 2026 from preceding years is not merely the velocity of technological modification, though that velocity is genuine, however rather an essential shift in how business envisage their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, but this development masks a more extensive change.
Instead, they ask whether these centers drive development, own profit-and-loss obligation, and contribute to competitive differentiation. In 2026, the most effective GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply aligned with global business outcomes. This shift from execution to ownership represents perhaps the single most considerable tactical recalibration in the GCC design's development.
This week, we're convening more than 3000 conferences between financiers and 119 Gulf-listed business with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're bringing together financiers, companies, exchanges, and policymakers to discuss what is changing in the area, and what comes next, including the expansion and ongoing development of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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