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To reverse a years of weakening total factor performance, local labour market policy is shifting from easy job development to managing active workforce shifts. Governments and companies are scaling short, modular training programmes and micro-credentials in information analytics and digital operations to gear up workers for emerging roles. Workplace-based learning and apprenticeship-style pathways are ending up being more common as firms integrate AI tools into day-to-day workflows.
With oil rates anticipated to average $55-60 per barrel in 2026, local governments are magnifying their focus on expenditure discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds towards higher-impact financial investments. While borrowing through sukuk and sustainability-linked bonds is expected to increase to money tactical deficits, the focus stays on strengthening non-oil profits structures.
PwC Middle East economic policy and technique partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC governments are now concentrated on shipment. In 2026, the priority is reinforcing financial durability through more safe trade and financial investment relationships, efficient AI deployment, managed workforce shifts and disciplined financial policy in a more difficult and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's financial expansion in 2026, supported by strong private-sector performance, durable domestic demand and renewed financial investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to outshine most global regions 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 rising investment in technology and AI-related infrastructure.
Oil profits will be under pressure in the first half of 2026, production is expected to rise again in the 2nd half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will stay a major contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by commercial growth and policy reforms, including relieved foreign ownership guidelines that aim to stimulate additional financial investment. The fiscal deficit is predicted to widen to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year rent freeze in Riyadh intends to ease inflationary pressures, though it may constrain future real estate supply.
Strong domestic fundamentalsThe UAE is likewise positioned for another strong year of performance, with GDP forecast to increase 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services remain crucial development chauffeurs, supported by population growth and continual 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 once again in the second half of 2026, complementing ongoing investment in infrastructure, technology and international trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, said: "This quarter's outlook strengthens how far the GCC has been available in building varied, resistant and internationally competitive economies.
Strategic Strategy for Middle East ExcellenceScott Livermore, ICAEW Economic Consultant, and Chief Financial Expert and Handling Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is acquiring rate, supported by robust demand and rising financial investment, even as financial pressures increase.""The UAE continues to benefit from strong domestic principles, a sharp uplift in federal government spending and sustained diversity efforts.
What distinguishes 2026 from preceding years is not merely the velocity of technological change, though that acceleration is real, but rather a basic shift in how enterprises develop of their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, however this development masks a more extensive improvement.
Rather, they ask whether these centers drive innovation, own profit-and-loss obligation, and contribute to competitive distinction. In 2026, the most successful GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply lined up with worldwide company results. This shift from execution to ownership represents possibly the single most considerable tactical recalibration in the GCC design's advancement.
This week, we're assembling more than 3000 meetings in between investors and 119 Gulf-listed companies with a combined worth of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're uniting investors, companies, exchanges, and policymakers to discuss what is altering in the area, and what comes next, including the growth and ongoing advancement of the Gulf's capital markets, and the region's growing function in worldwide networks of capital and trade.
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