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To reverse a years of deteriorating total factor performance, local labour market policy is shifting from easy task development to handling active workforce transitions. Federal governments and companies are scaling short, modular training programs and micro-credentials in data analytics and digital operations to equip workers for emerging roles. Workplace-based knowing and apprenticeship-style paths are becoming more common as firms incorporate AI tools into day-to-day workflows.
With oil prices forecasted to average $55-60 per barrel in 2026, local governments are heightening their concentrate on expense discipline and private capital mobilisation. Financial policy is rotating toward the monetisation of state-owned properties in logistics, utilities, and desalination to reroute funds towards higher-impact financial investments. While loaning via sukuk and sustainability-linked bonds is anticipated to increase to money strategic deficits, the focus remains on strengthening non-oil income structures.
PwC Middle East economic policy and strategy partner Jing Teow stated: "Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. In 2026, the top priority is enhancing economic durability through more safe trade and investment relationships, efficient AI implementation, managed workforce transitions and disciplined financial policy in a more tough and fragmented international environment.".
Saudi Arabia and UAE are poised to lead the Gulf area's financial expansion in 2026, supported by strong private-sector efficiency, resilient domestic demand and renewed financial investment momentum, according to the most current ICAEW Economic Insight Q4 2025 report, produced by Oxford Economics. The GCC is anticipated to exceed most global areas peers next year, with local GDP forecast to grow by 4.4%. Across the GCC, non-energy activity is projected to broaden by 4.1% in 2026, driven by strong labour markets, enhancing credit conditions and increasing investment in technology and AI-related infrastructure.
Although oil revenues will be under pressure in the very first half of 2026, production is anticipated to rise again in the second half of 2026, supporting the area's medium-term outlook, it stated. Saudi Arabia will stay a significant factor to GCC momentum, with GDP forecast to grow 4.3% in 2026.
Growth will be supported by commercial growth and policy reforms, consisting of alleviated foreign ownership rules that aim to stimulate more investment. The financial deficit is forecasted to broaden to 5.6% of GDP next year amid softer oil prices, while the current five-year rent freeze in Riyadh aims to ease inflationary pressures, though it might constrain future real estate supply.
Strong domestic fundamentalsThe UAE is also positioned for another strong year of efficiency, with GDP forecast to rise 5.6% in 2026 as non-oil sectors continue to expand. Tourism, trade and financial services stay key development drivers, 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 expected to pick up 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, said: "This quarter's outlook reinforces how far the GCC has been available in structure varied, resistant and globally competitive economies.
Increasing Business Agility Through Gulf Shared Service CentersScott Livermore, ICAEW Economic Advisor, and Chief Economist and Managing Director, Oxford Economics Middle East, stated: "Saudi Arabia and the UAE are going into 2026 with strong structures. Saudi non-oil activity is gaining pace, supported by robust demand and rising investment, even as financial pressures increase.""The UAE continues to gain from strong domestic basics, a sharp uplift in federal government spending and sustained diversification efforts.
Increasing Business Agility Through Gulf Shared Service CentersWhat differentiates 2026 from preceding years is not merely the velocity of technological modification, though that acceleration is real, but rather a basic shift in how business envisage their GCCs' purpose. The is expected to grow to 4 hundred thirteen billion dollars by 2040, however this growth masks a more extensive transformation.
Instead, they ask whether these centers drive innovation, own profit-and-loss duty, and add to competitive differentiation. In 2026, the most successful GCCs will behave like internal startups, agile, cross-functional, insight-driven, and deeply lined up with global company results. This shift from execution to ownership represents perhaps the single most considerable tactical recalibration in the GCC model's advancement.
This week, we're assembling more than 3000 meetings between investors and 119 Gulf-listed business with a combined worth 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 follows, including the expansion 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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