As the Gulf Cooperation Council (GCC) navigates 2026, its economic policy is adapting to a challenging global landscape marked by tighter external conditions, rapid technological change, and a fragmenting trade system. According to analysis from PwC Middle East, the region is sharpening its focus on five key themes to bolster long-term competitiveness and productivity.
These strategic priorities include broadening trade relationships, securing critical supply chains, accelerating the deployment of Artificial Intelligence, adapting the regional workforce for new demands, and strengthening fiscal management.
Jing Teow, Partner, Economic Policy and Strategy at PwC Middle East, commented, “Having already mobilised capital and policy at scale, GCC governments are now focused on delivery. 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.”
Diversifying Global Trade Partnerships
To secure access to growth markets and raw materials, GCC economies are accelerating trade diversification. Negotiations are advancing with major partners like China, the European Union, and Japan, with a potential deal with the United Kingdom expected to conclude in 2026.
The region is also deepening its engagement with Southeast Asian nations and progressing on the India–Middle East–Europe Economic Corridor (IMEC), reinforcing its role as a crucial hub for east–west and south–south trade. The UAE’s Comprehensive Economic Partnership Agreement (CEPA) program stands out, having delivered double-digit trade growth with partners like India, Türkiye, and Indonesia.
Securing Critical Supply Chains
GCC nations are intensifying efforts to secure access to critical minerals as global demand soars. Saudi Arabia is positioning mining as a major economic pillar, led by Maaden’s expansion in phosphate, aluminium, copper, and other critical minerals.
The region is also making strategic moves into domestic processing and logistics, positioning the GCC as a key connector between African mineral supply and global industrial demand. This strategy supports local industrial development while reducing exposure to concentrated global refining capacity.
From AI Ambition To Actionable Deployment
In 2026, the GCC is shifting from AI ambition to large-scale implementation. Significant investments in computing infrastructure across the UAE and Saudi Arabia are positioning both nations among the world’s leaders for GPU clusters, easing previous constraints on advanced compute and sovereign cloud capacity.
This improved access is enabling a move from pilot projects to operational AI deployment across key sectors such as finance, energy, and logistics, with a clear focus on realizing tangible productivity gains.
Adapting The Workforce For A Digital Future
Despite strong employment growth, productivity across the GCC has weakened over the past decade due to skills mismatches and slower technology diffusion. To address this, regional labour market policy is now focused on managing workforce transitions in the age of AI.
Governments and employers are expanding modular training and micro-credentials in high-demand areas like data analytics, cybersecurity, and AI-enabled operations. Workplace-based learning and sophisticated labour market platforms are being utilized to align training with real-time employer demand, enabling workers to transition into higher-value roles.
Strengthening Fiscal Resilience Amid Market Shifts
With lower hydrocarbon revenues, the GCC is reinforcing the need for expenditure discipline and private capital mobilization. Privatisation and public-private partnerships (PPPs) in sectors like transport and utilities are expected to play a larger role in fiscal management.
Rather than introducing major new taxes, the focus will be on stronger corporate and value-added tax compliance, targeted subsidy reforms, and prioritized capital spending to maintain fiscal sustainability while supporting long-term economic diversification.
About PwC Middle East
PwC Middle East is part of the global PwC network of firms, offering professional services in assurance, tax, and advisory. In the region, it helps organisations and individuals create value by providing solutions tailored to the local economic landscape, serving a wide range of industries and supporting public and private sector clients in navigating complex business challenges.
Source: Zawya
