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To reverse a years of compromising overall element productivity, local labour market policy is moving from basic task creation to handling active labor force shifts. Federal governments and employers are scaling short, modular training programmes and micro-credentials in data analytics and digital operations to gear up workers for emerging functions. Workplace-based knowing and apprenticeship-style pathways are becoming more typical 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 personal capital mobilisation. Financial policy is pivoting towards the monetisation of state-owned assets in logistics, utilities, and desalination to redirect funds toward higher-impact investments. While borrowing via sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus stays on enhancing non-oil revenue frameworks.
PwC Middle East financial policy and strategy partner Jing Teow said: "Having currently mobilised capital and policy at scale, GCC federal governments are now focused on delivery. In 2026, the top priority is reinforcing financial resilience through more safe trade and financial investment relationships, efficient AI implementation, handled workforce shifts and disciplined fiscal policy in a more difficult and fragmented worldwide 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 current 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%. Throughout the GCC, non-energy activity is predicted to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing financial investment in technology and AI-related facilities.
Although oil earnings will be under pressure in the first half of 2026, production is anticipated to increase again in the 2nd half of 2026, supporting the region's medium-term outlook, it stated. Saudi Arabia will remain a major factor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by commercial growth and policy reforms, including alleviated foreign ownership guidelines that aim to stimulate additional financial investment. The fiscal deficit is projected to broaden to 5.6% of GDP next year in the middle of softer oil costs, while the recent five-year lease freeze in Riyadh aims to ease inflationary pressures, though it may constrain future housing supply.
Strong domestic fundamentalsThe UAE is likewise 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 financial services stay essential development drivers, supported by population growth and continual domestic need. Dubai's economy grew 4.4% in the first half of 2025, reflecting broad-based non-oil strength.
Oil production is expected to get once again in the 2nd half of 2026, matching continuous investment in infrastructure, technology and worldwide trade collaborations. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has come in structure varied, durable and internationally competitive economies.
Making Sure Compliance Amidst Rapid Regulatory Changes in OmanScott Livermore, ICAEW Economic Consultant, and Chief Economist and Managing Director, Oxford Economics Middle East, said: "Saudi Arabia and the UAE are entering 2026 with strong foundations. Saudi non-oil activity is acquiring pace, supported by robust demand and increasing investment, even as financial pressures increase.""The UAE continues to gain from strong domestic fundamentals, a sharp uplift in federal government spending and continual diversification efforts.
Making Sure Compliance Amidst Rapid Regulatory Changes in OmanWhat differentiates 2026 from preceding years is not simply the velocity of technological change, though that acceleration is genuine, however rather a fundamental shift in how business envisage their GCCs' function. The is anticipated to grow to four hundred thirteen billion dollars by 2040, but this growth masks a more extensive change.
Rather, they ask whether these centers drive development, own profit-and-loss obligation, and add to competitive differentiation. 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.
Today, we're convening more than 3000 conferences between financiers and 119 Gulf-listed companies with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're uniting investors, business, exchanges, and policymakers to discuss what is altering in the area, and what comes next, including the growth 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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