Within the broader context of global concern regarding environmental degradation, the United Nations formulated the Sustainable Development Goals (SDGs) to address the destructive consequences of rapid economic growth. Industries such as steel, plastics, chemicals, and hydrocarbons provide livelihoods to millions worldwide but are also major contributors to environmental damage.
Sustainable development aims to maintain economic progress while minimising harm. This presents a significant challenge for the Gulf Cooperation Council (GCC) states, given their reliance on hydrocarbons.
Strategic Approaches
Monaem Ben Lellahom, Group CEO and Founding Partner of Sustainable Square, identifies three key challenges organisations in the GCC face when integrating ESG principles. He tells ESG Mena:
“First, collecting and verifying accurate data is a struggle, given fragmented reporting systems and a lack of standardized disclosure frameworks. This leads to incomplete insights for ESG assessments. To overcome this, companies should adopt centralized data management systems, guided by global standards such as IFRS/ISSB and GRI, ensuring consistency and comparability.”
He further highlights another major challenge:
“Second, many firms do not fully grasp the business case for ESG, often viewing it as a compliance exercise rather than a value driver. Effective solutions involve highlighting case studies where ESG has positively influenced profitability, risk management, and stakeholder trust.”
Lastly, achieving leadership buy-in remains a barrier:
“Achieving buy-in from top management can be difficult without demonstrating tangible benefits. Leadership engagement can improve by positioning ESG as integral to long-term business growth and resilience, supported by metrics that link sustainability performance to financial outcomes.”
Dr. Waddah Ghanem Al Hashmi, Governance and Sustainability Expert, Fellow and Chairman of the Advisory Board, UAE Chapter, GCC-BDI, highlights to ESG Mena the increasing integration of sustainability into corporate governance frameworks:
“In the past few years, we have had many conversations with multiple types of stakeholders including boards, executive leaders, institutions, regulators, and special interest groups. One thing for sure that I have seen is that there is a significant positive increase in awareness. Stakeholders continue to look at sustainability from a different context depending on their roles, responsibilities, and general perspectives. In terms of governance frameworks, sustainability, CSR and generally socio-economic and socio-environmental aspects; these have always been integrated into the purpose of organisations of socially productive entities. It is this aspect of their responsibility which has become more profoundly overt in recent years.”
He further explains the growing role of non-executive boards and executive leadership in shaping sustainability policies:
“Moreover, the role of both the non-executive boards and the executive leadership has become more pronounced in terms of their responsibilities towards their stakeholders and society at large. Their fiduciary duties have always been linked to their roles, especially in setting the tone, being responsible stewards of social and environmental responsibility. With many sectors and with market requirements for ESG reporting for purposes of brand reputation development and protection, stakeholder management, attraction and retention of talent and probably most profoundly access to (cheaper) capital, this has been in a way an accelerator of both voluntary and mandatory reporting along with financial performance reports.”
The Role of Technology
Speaking to ESG Mena, Dr. Mohab Ali Al-Hinai, a sustainability expert and Vice President of Sustainability and Circular Economy at be’ah, underscores the importance of technological advancements in addressing sustainability challenges:
“Technological innovation plays a crucial role in accelerating Oman’s sustainability agenda. Advanced waste-to-value solutions, carbon capture technologies, and digital tools such as AI and blockchain can drive efficiency, enhance resource recovery, and support low-carbon development. Biotechnology also offers potential in areas like bio-based materials and waste treatment. However, technology alone is not the solution—effective policies, regulatory frameworks, and business incentives are required to enable large-scale adoption and long-term impact.”
Since adopting the SDGs in 2015, the GCC states have launched long-term sustainability plans extending to 2050 and, in Bahrain’s case, 2060 due to economic constraints. Over the past decade, efforts have focused on decarbonisation and sustainability improvements.
Paradoxically, the very industry that needs reform—oil—also provides the financial resources for these initiatives. Bahrain and the UAE were early adopters of climate adaptation strategies, with the UAE and Oman being the only GCC states to integrate sustainability into their broader economic planning.
Other states have taken an ad-hoc approach, with sporadic funding announcements. For instance, in 2023, Saudi Arabia committed over $260 billion to green initiatives, supplementing its earlier establishment of a Public Investment Fund (PIF). However, the Kingdom’s efforts still lack the structured financial planning seen in the UAE.
Economic diversification remains central to the GCC’s sustainability drive. Oman has leveraged its geography to expand high-value food production, particularly seafood, adding $374 million in 2023. Saudi Arabia and Kuwait rely on long-standing food industries that require tailored sustainability measures. A broader effort to reduce reliance on hydrocarbon revenue has also driven investments in carbon capture technologies, a field largely abandoned elsewhere.
Major Strides
The SDGs extend beyond environmental concerns to education and gender equality. Increasing women’s workforce participation effectively doubles a country’s labour pool. Saudi Arabia, under Crown Prince Mohammed bin Salman, has implemented significant reforms. The UAE, particularly Dubai, had already positioned itself as a hub for female entrepreneurship.
Saudi Arabia’s efforts have yielded notable results: women own over one million commercial registrations, accounting for 45% of businesses. They also hold 43% of leadership positions, surpassing earlier targets. Many of these women took advantage of support and training schemes to build themselves up as contributors, which is a model that can also be adopted by states such as Bahrain.
Education is another crucial aspect of sustainable development. A robust education sector fosters research, reduces brain drain, and enables the GCC to develop localised sustainability solutions. Addressing the region’s brain drain requires economic expansion into new sectors—something the de-carbonisation plans aim to achieve. However, challenges remain, particularly in standardising assessments and increasing regionally relevant research.
Expanding international student capacity and promoting key cities as education hubs could further attract global talent, especially in postgraduate research fields.
Environmental Concerns and Sustainability Challenges
Ben Lellahom notes the need for structured evaluations to assess the effectiveness of sustainability initiatives:
“Assessing the effectiveness of sustainability initiatives starts with clearly defining objectives and aligning them with stakeholders’ priorities. A mix of quantitative and qualitative methods is crucial—quantitative metrics offer measurable progress, while qualitative data captures stakeholder experiences and long-term impact.”
He outlines the key metrics that organizations should track:
“Common frameworks like the UN SDGs, SROI (Social Return on Investment), and ESG reporting standards help structure evaluations, ensuring initiatives are both relevant and results-driven. Key metrics include environmental indicators such as carbon emissions reduction, resource efficiency, and waste management. On the social front, metrics like job creation, community well-being, and access to education or healthcare provide valuable insight. Governance indicators, including ethical compliance, diversity, and risk management, also play a role.”
According to Lellahom, tracking these metrics consistently is key: “These metrics, when consistently tracked, reveal whether initiatives are fostering lasting change rather than short-term outputs. Regular reporting and stakeholder feedback further enhance accountability and continuous improvement.”
Dr. Al-Hinai also highlights the complexities involved in Oman’s transition to a circular economy, pointing out both the hurdles and opportunities:
“The transition to a circular economy in Oman presents both challenges and opportunities. Key challenges include market readiness, regulatory alignment, and shifting traditional consumption and production models. On the other hand, opportunities exist in industrial waste valorization, recycling infrastructure, and circular business models. By focusing on material recovery, energy production from waste, and enabling extended producer responsibility (EPR) policies, Oman can move toward a more sustainable and resilient economy. Collaboration with the private sector and integration of global best practices will be essential to drive meaningful progress.”
Biodiversity conservation remains a weak point in GCC sustainability efforts. Overfishing, particularly in Omani waters, has disrupted marine ecosystems. On land, desertification is a pressing issue. While the GCC is naturally arid, infrastructure expansion has accelerated land degradation. Forests and woodlands cover only 1.8 million hectares—insufficient for meaningful carbon absorption or ecological balance.
Saudi Arabia, Qatar, Oman, and the UAE have all experienced land degradation due to rapid urbanisation and resource-intensive agriculture. Overgrazing is a major driver, accounting for 97% of Saudi Arabia’s land degradation, with similar figures for Qatar (92%) and Kuwait (88%).
Tourism, a key component of economic diversification, also raises sustainability concerns. Bahrain and Oman rely on coastal tourism, yet poorly managed marine tourism can cause ecological harm, as seen in Thailand and the Philippines. The UAE’s Palm and World Islands developments have significantly impacted coral reefs and marine habitats, highlighting the need for stricter environmental regulations.
The Road Ahead
Dr. Al Hashmi also reflects on the broader trends shaping sustainability within governance frameworks, citing the significance of global regulatory shifts:
“In June 2023, the International Sustainability Standards Board (ISSB) issued IFRS S1 which contained the General Requirements for Disclosure of Sustainability-related Financial Information. In my personal opinion this was an extremely proactive and progressive step for ‘integrated reporting’. As explained above, the role and purpose of an organisation was, whilst making profits for shareholders, is to add value to all its stakeholders as well and society at large. Clearly with aspects of climate change, socio-economic and generally environmental and inequality risks around the world, it was fundamental that all, but especially profit-making organisations, demonstrate their commitment to a sustainable future for the world and the societies that they impacted.”
Dr. Al Hashmi concludes with an optimistic outlook on sustainability’s growing role in corporate governance:
“Notwithstanding the major societal and geo-political changes we see today, and the major changes in public policy, rise of protectionism and more right-wing politics around the world; I think the road to sustainable development and sustainability is moving in the right direction to the future, leveraging on activism of younger populations, changed regulations, technological developments leading to energy management, AI-enabled productivity and data-driven decision making, some positive drive and wind of change in the future.”
As relatively recent industrialisers, implementing sweeping sustainability reforms among GCC states requires strong political will. Success in these initiatives would mark an unprecedented transformation, setting a model for other regions.
Historically, the Middle East has not been a primary contributor to global carbon emissions. However, as suppliers of hydrocarbons, the GCC bears an indirect climate responsibility. The region’s most advanced economies have a critical role to play—not only in the next global energy transition but also in shaping the future of sustainable industry.
By: Omar Ahmed