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To reverse a decade of damaging overall element productivity, local labour market policy is shifting from easy job development to managing active workforce transitions. Federal governments and companies 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 paths are ending up being more typical as firms integrate AI tools into daily workflows.
With oil costs forecasted to typical $55-60 per barrel in 2026, local governments are heightening their focus on expenditure discipline and personal capital mobilisation. Fiscal policy is pivoting toward the monetisation of state-owned possessions in logistics, utilities, and desalination to redirect funds toward higher-impact financial investments. While borrowing via sukuk and sustainability-linked bonds is anticipated 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 governments are now focused on shipment. In 2026, the top priority is reinforcing economic resilience through more safe trade and investment relationships, efficient AI release, managed labor force transitions and disciplined financial policy in a more tough and fragmented worldwide environment.".
Saudi Arabia and UAE are poised to lead the Gulf region's economic growth in 2026, supported by strong private-sector performance, durable domestic need and renewed investment momentum, according to the current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is expected to exceed most international regions peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to expand by 4.1% in 2026, driven by strong labour markets, improving credit conditions and rising financial investment in innovation and AI-related infrastructure.
Oil incomes will be under pressure in the very 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 stay a significant contributor to GCC momentum, with GDP projection to grow 4.3% in 2026.
Development will be supported by commercial expansion and policy reforms, including relieved foreign ownership rules that intend to promote further investment. The fiscal deficit is predicted to broaden to 5.6% of GDP next year in the middle of softer oil prices, while the recent five-year lease freeze in Riyadh aims to reduce inflationary pressures, though it might constrain future housing supply.
Strong domestic fundamentalsThe UAE is also placed for another strong year of performance, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to broaden. Tourist, trade and monetary services stay key growth motorists, supported by population development 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 anticipated to select up once again in the 2nd half of 2026, matching continuous investment in facilities, technology and international trade partnerships. Hanadi Khalife, the Head of Middle East, ICAEW, stated: "This quarter's outlook reinforces how far the GCC has actually can be found in building varied, resistant and internationally competitive economies.
GCC News: Strategic Corporate Trends for 2026Scott Livermore, ICAEW Economic Consultant, and Chief Economic Expert and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are getting in 2026 with strong structures. Saudi non-oil activity is getting rate, supported by robust need and increasing financial investment, even as financial pressures increase.""The UAE continues to take advantage of solid domestic principles, a sharp uplift in federal government costs and sustained diversity efforts.
GCC News: Strategic Corporate Trends for 2026What differentiates 2026 from preceding years is not merely the velocity of technological change, though that acceleration 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, but this development masks a more extensive change.
Instead, they ask whether these centers drive innovation, own profit-and-loss responsibility, and contribute to competitive distinction. In 2026, the most effective GCCs will behave like internal startups, nimble, cross-functional, insight-driven, and deeply lined up with global organization results. This shift from execution to ownership represents perhaps the single most substantial tactical recalibration in the GCC design's evolution.
This week, we're convening more than 3000 meetings between investors and 119 Gulf-listed business with a combined value of $2.4 trillion at the HSBC GCC Exchanges Conference 2026, in London. We're combining financiers, business, exchanges, and policymakers to discuss what is changing in the region, and what comes next, including the expansion and continuous advancement of the Gulf's capital markets, and the area's growing role in worldwide networks of capital and trade.
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