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GCC policymakers entered 2026 with a clear shift toward implementation of earlier reforms as external conditions tightened and technological disruption accelerated, according to a PwC Middle East assessment. Partner Jing Teow stated that after mobilising capital and policy at scale, governments were now focused on delivery. Teow added, “In 2026, the priority is strengthening economic resilience through more secure trade and investment relationships, effective AI deployment, managed workforce transitions and disciplined fiscal policy in a more challenging and fragmented global environment.” World Bank data shows economic growth across the GCC is projected to increase to 4.5 percent in 2026, driven by the rollback of OPEC+ oil production cuts and robust non-oil sector expansion.
The assessment placed building broader and more diverse trade bridges at the forefront of regional strategy, with negotiations advancing with China, the European Union, Japan, New Zealand and Mercosur. Talks with the United Kingdom reached final drafting stages and could conclude during the year, while deeper engagement continued with Malaysia, Vietnam and ASEAN members. Progress on the India-Middle East-Europe Economic Corridor reinforced the GCC’s role in east-west and south-south flows, and the UAE’s Comprehensive Economic Partnership Agreement programme with more than two dozen partners produced double-digit trade growth with India, Türkiye and Indonesia, PwC figures show.
Efforts to secure critical supply chains gained momentum as demand for minerals rose and traditional suppliers remained concentrated. Saudi Arabia positioned its mining sector as a major pillar by 2035 under the leadership of Maaden, which is expanding in phosphate, aluminium, copper and critical minerals. Upstream partnerships in Africa and Asia accompanied early steps toward domestic processing and logistics, enabling the region to connect African supply with global demand while supporting local industrial development, the PwC report noted.
AI policy moved from ambition to operational deployment as new computing capacity came online in the UAE and Saudi Arabia, placing both among leaders in planned and active GPU clusters. Regulations clarified and access improved, shifting focus in 2026 toward productivity gains in finance, energy, logistics and transport rather than experimentation. Coursera data recorded a 344 percent rise in generative AI course enrollments in the UAE, underscoring rapid skills uptake across the bloc.
Workforce transitions received renewed attention after a decade of employment growth accompanied by weakened productivity caused by slower technology diffusion, process rigidity and skills mismatches. Policymakers expanded modular training and micro-credentials in data, cybersecurity and AI operations through public-private partnerships. Workplace learning, apprenticeships and incentives for mid-career shifts formed part of the approach, with real-time labour market platforms helping align supply and demand to channel workers into higher-value roles, according to the assessment.
Fiscal resilience emerged as a core theme amid lower hydrocarbon revenues, prompting greater emphasis on privatisation, public-private partnerships and selective borrowing in transport, utilities and non-strategic energy assets. Major new taxes appeared unlikely, yet stronger compliance on existing corporate and value-added taxes together with targeted subsidy reforms and prioritised capital spending would support diversification goals. The PwC review indicated these measures would help maintain stability without compromising sustainability objectives.
A separate PwC survey of regional chief executives found 93 percent expected domestic economic momentum to strengthen over the following 12 months, far above the global average. The five themes identified in January continued to shape policy discussions through the first half of 2026, influencing productivity, diversification and the region’s capacity to absorb external shocks over the medium term.
