Sustainable energy revolution: green finance as the key to the Arab Gulf States’ future

Purpose This study aims to examine green finance’s role in expanding renewable energy and diversifying Gulf economies, focusing on regulations, private sector participation and innovative tools like green sukuk and blockchain. Design/methodology/approach Mixed-methods analysis employs Dynamic Panel Data (DPD) and Difference-in-Differences (DiD) estimates to assess the effectiveness of green finance in terms of scalability, investors’ confidence and transformation in six Gulf Cooperation Council (GCC) economies. Qualitative information about trends in investments and policies comes through stakeholder interviews. Findings Established governance and uniform laws build confidence in investors and stimulate renewable energy development. Saudi Arabia and the UAE use effectively green bonds and sukuk, and Kuwait and Oman face investment disincentives through fragmentation in laws and regulations. Transparency and efficiency are boosted through blockchain technology. Public–private partnerships (PPPs) and risk-sharing, in lessons drawn in sub-Saharan Africa and in Southeast Asia, pay dividends in maximizing green finance. Practical implications The findings suggest that aligning regional policies with global sustainability standards and fostering greater private sector engagement are crucial to optimizing green finance’s impact on the region’s long-term economic and environmental goals. Originality/value Integrating best practice globally, Islamic finance and blockchain, this paper proposes a region-sensitive model for sustainability for the Gulf region. It offers a comparative analysis of green financial models and sees a role for new financial technology in delivering transparency and a transition to a low-carbon economy.