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To reverse a decade of weakening overall factor efficiency, regional labour market policy is moving from easy task development to managing active workforce transitions. Federal governments and employers are scaling short, modular training programs and micro-credentials in information analytics and digital operations to gear up workers for emerging roles. Workplace-based knowing and apprenticeship-style pathways are becoming more typical as companies integrate AI tools into daily workflows.
With oil rates forecasted to average $55-60 per barrel in 2026, regional federal governments are heightening their concentrate on expense discipline and private capital mobilisation. Financial policy is pivoting toward the monetisation of state-owned properties in logistics, energies, and desalination to redirect funds towards higher-impact investments. While loaning by means of 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 financial policy and technique partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now concentrated on shipment. In 2026, the priority is reinforcing economic resilience through more protected trade and financial investment relationships, efficient AI release, handled labor force transitions and disciplined fiscal policy in a more difficult and fragmented global environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's financial expansion in 2026, supported by strong private-sector efficiency, resistant domestic need and renewed investment momentum, according to the latest ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to exceed most worldwide areas peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and rising investment in innovation and AI-related infrastructure.
Although oil earnings will be under pressure in the first half of 2026, production is anticipated to increase once again in the 2nd half of 2026, supporting the region's medium-term outlook, it mentioned. Saudi Arabia will remain a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Growth will be supported by commercial expansion and policy reforms, including alleviated foreign ownership guidelines that intend to stimulate further financial investment. The financial deficit is predicted to expand to 5.6% of GDP next year amidst softer oil prices, while the recent five-year rent freeze in Riyadh intends to ease 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 increase 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and monetary services stay key development chauffeurs, supported by population growth and sustained domestic need. Dubai's economy grew 4.4% in the first half of 2025, showing broad-based non-oil strength.
Oil production is anticipated to select up once again in the 2nd half of 2026, complementing ongoing investment in infrastructure, innovation and global trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook enhances how far the GCC has actually can be found in building diverse, resistant and worldwide competitive economies.
Assessing the Possible of Saudi Arabia's Emerging Urban HubsScott Livermore, ICAEW Economic Advisor, 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 acquiring pace, supported by robust demand and increasing financial investment, even as financial pressures increase.""The UAE continues to benefit from solid domestic principles, a sharp uplift in government costs and sustained diversity efforts.
Assessing the Possible of Saudi Arabia's Emerging Urban HubsWhat differentiates 2026 from preceding years is not merely the velocity of technological modification, though that velocity is real, but rather a fundamental shift in how business conceive of their GCCs' function. The is expected to grow to 4 hundred thirteen billion dollars by 2040, however this development masks a more extensive change.
Instead, they ask whether these centers drive development, own profit-and-loss responsibility, and add to competitive distinction. In 2026, the most effective GCCs will behave like internal start-ups, nimble, cross-functional, insight-driven, and deeply lined up with international company outcomes. This shift from execution to ownership represents possibly the single most significant strategic recalibration in the GCC model's development.
This week, we're assembling more than 3000 meetings in between investors and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, companies, exchanges, and policymakers to discuss what is changing in the area, and what follows, consisting of the growth and continuous development of the Gulf's capital markets, and the region's growing role in international networks of capital and trade.
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