Dubai, UAE – Gulf businesses are entering 2026 with a sharper focus on operational efficiency, compliance, and technology-led transformation, according to Sovereign PPG, the region’s leading business formation and corporate services provider.

Insights from the firm’s GCC leadership position 2025 as a defining year of business maturity – marked by corporate tax implementation, regulatory reform, workforce nationalisation, and rapid AI integration. A growing preference for onshore structures and closer regulatory alignment across the GCC is further strengthening the region’s credibility as a global business hub.

“Businesses in the Gulf are adjusting their position from speed of doing business to building clear strategy,” said Simon Gordon, Managing Director – Middle East, Sovereign PPG. “The GCC is entering a new phase of corporate maturity, where success is measured not by expansion alone, but by governance, efficiency, and the ability to harness technology responsibly.”

Corporate Tax and Regulatory Reform: Regulation as a Strategic Enabler

The UAE’s first corporate tax cycle has reframed regulation as both an operational and strategic advantage. Across the Gulf, growing adoption of ultimate beneficial ownership (UBO) rules, digital invoicing, and strengthened governance frameworks is enhancing transparency and investor confidence.

Demand patterns reflect this shift: tax-related guidance leads grew 152.6% from 2023 to 2024 and a further 66.7% into 2025; foundation structures rose 52.2% and then 191.4%; and family office enquiries increased 102% and 34%, underscoring the appeal of regulated, onshore solutions.

The UAE remains the focal point for company setup, family offices, and residency solutions, with rising engagement from the UK and EU investors, while Bahrain, Qatar, and Saudi Arabia are strengthening their ecosystems. Activity now spans 126 countries, illustrating the region’s broadening global reach.

“Regulation builds investor confidence by demonstrating transparency and reliability,“ added Gordon. “Some still perceive the Middle East as quick and easy, which can create frustration when faced with stricter compliance. But these standards are critical to attracting the right kinds of businesses that will strengthen the region’s reputation.”

AI and Workforce Transformation

AI adoption is accelerating across HR, finance, and compliance, improving recruitment, workflow automation, and data management while reinforcing internal governance. Alongside this, workforce nationalisation remains a defining priority.  Rising requirements make early planning around role definition and career progression essential. Last-minute hiring often leads to mismatched candidates and greater employee turnover.

In 2025, UAE visa modernisation and long-term Golden Visas supported business confidence and talent retention, even as higher Emiratisation quotas added complexity. Golden Visa demand accounted for 20% of Sovereign PPG’s business, with women representing 40% of issued visas – signalling inclusive investor appeal.

“AI is transforming operations, but human capital remains central to the GCC’s growth story,” said Nina Pacic - People Business Partner Middle East at Sovereign PPG. “Nationalisation, workforce reform, and the new visa landscape are reshaping how companies attract and retain talent – and that requires smart, compliant HR strategy.”

Onshore Wealth and Institutionalisation

The Gulf continues to attract ultra-high-net-worth (UHNW) families to regulated onshore structures as part of a broader wealth migration. In the UAE, ADGM and DIFC have solidified their roles as leading hubs for family offices and cross-border wealth planning, while Qatar and Bahrain are strengthening their propositions.

This shift reflects growing demand for institutionalisation, succession planning, and long-term governance, driven by families seeking the transparency and stability offered by well-regulated jurisdictions. The UAE’s declaration of 2026 as the ‘Year of Family’ underscores this momentum, signalling rising interest in foundations, family offices and structures focused on asset protection and intergenerational planning.

“The Gulf is evolving into one of the world’s most trusted destinations for regulated wealth and business operations,” said Zana Jablan Musa, Middle East Operations Director at Sovereign PPG. “As global investors relocate capital to the region, GCC jurisdictions are distinguishing themselves through a balance of opportunity, governance, and forward-thinking policy.”

Outlook for 2026: Operational Discipline and Strategic Growth

Sovereign PPG expects 2026 to further consolidate this transformation, with GCC businesses prioritising:

  • Alignment with regional regulations OECD Pillar Two readiness
  • Expansion of AI and digital transformation across finance, HR, and compliance
  • Adoption of R&D tax credits and innovation incentives
  • Continued growth and professionalisation of onshore structures and family offices
  • Strategic workforce localisation and talent development

The trends from 2025 –global interest, increased Western engagement, regional diversification, and high-intent enquiries – point to a Gulf ecosystem that is both globally competitive and increasingly institutionalised.

“If 2024 was the year of growth, and 2025 the year of governance, 2026 will be the year of operational discipline. Businesses are refining strategy, building resilience, and leveraging compliance and technology not as constraints, as catalysts for smarter, more sustainable growth,” added Gordon.

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About Sovereign

Sovereign began in Gibraltar in 1987 and has since grown into one of the largest independent corporate and trust service providers in the world. We currently manage over 20,000 clients that include companies, entrepreneurs, private investors or high net worth individuals and their families – and have assets under administration in excess of $20 billion. https://www.sovereigngroup.com.