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To reverse a decade of weakening overall factor productivity, local labour market policy is moving from basic job development to managing active workforce shifts. Federal governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to equip workers for emerging roles. Workplace-based knowing and apprenticeship-style pathways are ending up being more typical as firms integrate AI tools into everyday workflows.
With oil prices forecasted to typical $55-60 per barrel in 2026, local federal governments are heightening their focus on expenditure discipline and private capital mobilisation. Fiscal policy is rotating towards the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds toward higher-impact financial investments. While borrowing by means of sukuk and sustainability-linked bonds is expected to increase to fund tactical deficits, the focus remains on strengthening non-oil revenue structures.
PwC Middle East financial policy and technique partner Jing Teow stated: "Having currently mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the top priority is strengthening financial strength through more safe trade and investment relationships, effective AI deployment, managed workforce shifts and disciplined financial policy in a more difficult and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial growth in 2026, supported by strong private-sector efficiency, durable domestic demand and restored investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most global areas peers next year, with regional GDP forecast to grow by 4.4%. Throughout the GCC, non-energy activity is forecasted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in innovation and AI-related facilities.
Oil incomes will be under pressure in the first half of 2026, production is anticipated to rise once again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will remain 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, including reduced foreign ownership guidelines that intend to stimulate more financial investment. The fiscal deficit is forecasted to widen 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 positioned for another strong year of efficiency, with GDP projection to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services remain crucial development motorists, supported by population growth and sustained domestic demand. Dubai's economy grew 4.4% in the very first half of 2025, showing broad-based non-oil strength.

Oil production is anticipated to pick up again in the second half of 2026, complementing ongoing financial investment in infrastructure, innovation and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has actually come in building diverse, resilient and globally competitive economies.
Corporate Strategy for Regional ExcellenceScott Livermore, ICAEW Economic Consultant, and Chief Economist and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong foundations. Saudi non-oil activity is gaining pace, 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 federal government spending and continual diversification efforts.
Corporate Strategy for Regional ExcellenceWhat identifies 2026 from preceding years is not simply the acceleration of technological change, though that acceleration is genuine, but rather an essential shift in how enterprises envisage their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this growth masks a more profound change.
Rather, they ask whether these centers drive innovation, own profit-and-loss duty, and contribute to competitive distinction. In 2026, the most successful GCCs will behave like internal start-ups, agile, cross-functional, insight-driven, and deeply aligned with international business results. This shift from execution to ownership represents perhaps the single most substantial tactical recalibration in the GCC model's development.
This week, we're assembling 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 investors, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, consisting of the growth and continuous advancement of the Gulf's capital markets, and the area's growing role in global networks of capital and trade.
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