THEGREENECONOMYINTHECOUNTRIESOFTHEGULF

COOPERATIONCOUNCIL

SaloméAUDIé,HananBAKR,SanaBENABDALLAH,DanilBEKRAR,

ChristopheGERMAIN,ArnaudLACHERET,BrahimBELASRI-NOGUEIRA,DianedeSAINT-AFFRIQUE,DhaferSA?DANE

SupervisedbyDhaferSA?DANE

(DirectoroftheMScSustainableFinance&Fintech-SKEMABusinessSchool)

November2025

SKEMAPUBLIKA

SKEMAPUBLIKAisanindependentthinktankwhosepurposeistoproduceinternational,accessiblethinking,freefromstandardisedformats,inordertoenrichpublicdebateandbetterinformnationalandinternationaldecision-makersupstream.

AffiliatedwithSKEMABusinessSchool,thethinktankaddressespoliticalandsocietalissuesrelatedtopublicpolicy,onwhichSKEMAhasaclearlegitimacytospeak.Itapproachesthesetopicsthroughthelensofearlywarningsigns,anticipatesdevelopments,andformulatesrecommendationsforwhatcomesnext.Itsworkisgroundedinamultidisciplinaryandhybridmethodofinformationanalysis,combininghumananddigitalintelligence.ItdrawsonSKEMA’sinternationalandcross-culturalreach,spanningfivecontinentsandsupportedbythousandsofstudentsandhundredsofresearchers.

TABLEOFCONTENTS

FOREWORD i

INTRODUCTION 1

I.AMATTEROFSURVIVAL 3

II.THEGCC’SGREENTURNINGPOINT:AFASTERTRANSITIONTHANEUROPE 4

A.Economicdiversificationasstrategicimperative 4

B.OtherGulfcountriesarealsoacceleratingtheirdevelopment 6

III.FINANCINGTHETRANSITION:ANABUNDANCEOFCAPITAL 8

IV.RAPIDESGREGULATORYEVOLUTION:ANEWFRAMEWORKFORTRANSPARENCY 9

V.ANINCREASINGTRENDINESGPERFORMANCEACROSSTHEGCC 10

RECOMMENDATIONSANDSTRATEGICOUTLOOK 12

1.RecognisingtheGulfasastrategicpartneringlobalclimatesolutions 12

2.Acceleratingthetransition:Scale,speed,andinclusion 13

3.DeepeningESGintegrationacrossbusinessesandindustrialecosystems 13

Authors 15

ReadingComittee 17

FOREWORD

ThiscontributionistheresultofacollectiveworkledbyagroupofexpertsoftheExecutiveMScSustainableFinanceandFintech(DubaiCampus)andprofessorsfromSKEMABusinessSchool.DhaferSa?dane,SKEMAPublikacontributoronthetopicofsustainablefinance,coordinatedthispaper.

ItisinaworldpolarizedbetweenderegulatedcapitalismandecologicaldogmatismthatSKEMAPublikaaimstoembodyathirdway:atransitiontowardsrealisticandpragmaticsustainablefinancepromotinggrowththatiscompatiblewithsustainability.Thisworkispartofthatambition.

i

INTRODUCTION

“TheawardingofCOP28totheEmiratesbytheUNFCCCSecretariatallowedawholecountry,perhaps

awholeregion,tobegreenwashed

”1

AsillustratedbythisquotefromanarticlepublishedinTheNationinDecember2023,thereisacommonmisconceptionthatGulfcountriesengageingreenwashing

2

.However,theaimofthisnoteistochallengethisideabydemonstratingthattheclimateactiontakenbytheGulfCooperationCouncil(GCC)countriesisnotgreenwashing.ThisassertionisbasedonananalysisgroundedinlocalrealitiesandobservationsthathighlighttheurgencyoftheclimatetransitionintheGCCcountries.Throughthisnote,wealsoaimtochallengepersistentclichésandformsofethnocentrismthathindereffectiveinternationalcooperation.

TheGCCconsistsofsixcountriesfromtheGulfregion:SaudiArabia,Kuwait,Bahrain,Oman,QatarandtheUnitedArabEmirates(UAE).Theireconomiesareyoungercomparedtotheircounterpartsinadvancedeconomies(thatoftenareWesterneconomies).Notwithstanding,theyfaceexpectationstomatchtheenvironmentalstandardsofindustrializedcountries.TheGCCisaneconomicalliancefoundedin1981withthegoaltorapidlyindustrializetheGulfregion.ItwasinitiallyinspiredbyotherregionalintegrationexperiencessuchastheEuropeanUnion.TheparadoxisthattheGCChasonlyexistedforfourdecades,andtheyareexpectedtorapidlyindustrializewhileadaptingtocontemporaryenvironmentalstandards.IncomparisonEuropeanandNorthAmericanEconomieshavehadgenerationstoindustrializeandevolve.InthisregardtheobjectiveoftheGCCistopromoteindustrialisationintheGulfcountrieswhilealigningnationaltrajectorieswithtoday’senvironmentalstandards.

Inreality,theGulf’saggregatecontributiontoglobalemissionsremainscomparativelymodest,around2to3%ofglobalCO?,comparedwithroughly7%fortheEuropeanUnion

3

.SaudiArabia,theregion’slargestemitter,representsabout1.6%ofglobalfossil-fuelemissions

4

.Yet,despitethisshare,theGulfismovingfasterthanmostotherregionsinredefiningitseconomicandenvironmentalmodel.

Inaddition,whatmakestheGulf’strajectorysodistinctiveisitsacceleratedpace.CountriesliketheUAEhavetransitionedfrommodesttradinghubsintoglobaleconomiccenterswithin50years.DubaiInternationalAirport,forinstance,nowranksamongthebusiestintheworldandisamajorcontributortotheemirate’sgrossdomesticproduct(GDP).Thisaccelerateddevelopmenthasresultedinadual

1COLE(J.),“BigOilIsGreenwashingthePlanet”,TheNation,Environment,28Dec.2023,

/article/environment/saudi-arabia-greenwashing-cop28/.

2TheUnitedNationsdefinesgreenwashingasanattitudeaimingtomisleadthepublictobelievethatacompanyorotherentityisdoingmoretoprotecttheenvironmentthanitisactuallydoing.

“Greenwashing-

thedeceptivetacticsbehindenvironmentalclaims”,UnitedNations.

/en/climatechange/science/climate-issues/greenwashing.

3Servicedesdonnéesetétudesstatistiques,Chiffresclésduclimat-France,EuropeetMonde-édition2024,8Nov.2024,

https://www.statistiques.developpement-durable.gouv.fr/chiffres-cles-du-climat-france-europe-et-monde-edition-2024.

4EmissionsDatabaseforGlobalAtmosphericResearch,“CountryFactSheet-SaudiArabia”,edgar.jrc.ec.europa.eu,DataExplorer,

https://edgar.jrc.ec.europa.eu/country_profile/SAU.

1

imperative:tocontinuebuildingresilient,diversifiedeconomieswhileurgentlyadaptingthemforclimatetransitionandsustainability.ThisisadualchallengenoWesterneconomyhasfacedatsimilarscalesandtimelines.SincetheolderWesterneconomiesfirstindustrializedbeforefacingthechallengesofclimatetransition.

Consequently,severalquestionsarise:

IstheimageoftheMiddleEastasapolluterconsistentwithreality?Howarecountriesinthisregionmanagingtoreconcileeconomicgrowthwithsustainabledevelopment?

InthefirstpartwewillseethattheneedtoadapttoclimatechangeisamatterofsurvivalfortheGulfcountries.Inthesecondpart,wewillhighlightthattheGCCcountrieshavebeenmoresuccessfulthanEuropeancountriesinadaptingtotheenergytransition.Thethirdpartwillemphasizetheroleofabundantcapitalinthesuccessofthistransition.Inthefourthpart,wewillassesstherapidgrowthofESG(environmental,socialandgovernance)regulation.Finally,thelastpartwillsuggestseveralrecommendationsforthefuture.

2

I.AMATTEROFSURVIVAL

Buildingonthecontextdescribedabove,itisimportanttoemphasizethattheGulfregionisoneofthemostclimate-vulnerableregionsontheplanet.Itisexposedtoawarmingnearlytwicetheglobalaverage.Theregionhasalreadyexperiencedunprecedentedextremes:in2023,heatindices-combiningtemperatureandhumidityreached66°CinIranandpartsoftheGulf

5

.InAprilandMay2025,theUAEbroketemperaturerecordswithhighsof42.6°Cand51.6°C

6

,respectively,evenbeforetheofficialstartofsummer.Withoutmajormitigationefforts,suchextremescouldbecomecommonplaceby2070,andsomeareascouldexceedhumansurvivallevelsduetowet-bulbtemperaturesexceeding35°C.Inaddition,waterscarcityiscompoundingtheclimatechallenge.AlltheCCGmemberstatesareamongthe25mostwater-stressedcountrieswithQatarleadingtheway.Theregion’srelianceonenergy-intensivedesalination,combinedwithdwindlinggroundwaterreservesandgrowingdemand,jeopardizeslong-termfoodsecurityandurbandevelopment.

Furthermore,theGulf’scoastalecosystemsareunderthreat.Risingsealevels,urbanization,andincreasedsalinityareleadingtothecollapseofmangroveforests.Theseareessentialnaturalbarriersthatprotectcoastlinesfromstormsurgesanderosion

7

.Thedegradationoftheseecosystemsweakensclimateresilience,particularlyforlow-lyingurbancenterssuchasAbuDhabi,Doha,andManama.Preservingandrestoringmangrovesisthereforenotonlyanecologicalpriority,butakeycomponentofclimatechangeadaptationintheregion.

Whilemitigationisessential,adaptationremainsurgent.GCCcountriesareinvestinginheat-resilienturbanplanning,floodprotectionsystems,andAI-poweredearlywarningsystems.AbuDhabi’sgreeninfrastructurestandardsaimtoreduceurbanheatislands,whileQatarisexploringverticalfarmingtooffsetitsdependenceonfoodimports.

5CHATURVEDI(K.),“HeatIndexAtIranAirportHits66DegreesCelsiusAsClimateScientistWarnsEarthWillBecome(Inferno’”,,17July2023,

/world-news/heat-index-at-iran-airport-hits-66-degrees-celsius-as-climate-

scientist-warns-earth-will-become-inferno-4215534.

6Franceinfo,“LesEmiratsarabesunisenregistrentunnouveaurecorddetempératureenmai,avec51,6degrésCelsius“,franceinfo.fr,24May2025,

https://www.franceinfo.fr/environnement/crise-climatique/les-emirats-arabes-unis-

enregistrent-nouveau-un-record-de-temperature-en-mai-avec-51-6-degres-celsius_7270161.html.

7France24,“Environement:50%desécosystèmesdemangroverisquentdes’effondrer“,,22May2024,

/fr/info-en-continu/20240522-50-des-%C3%A9cosyst%C3%A8mes-de-mangrove-risquent-de-s-

effondrer-uicn.

3

11.THEGCCsSGREENTURNINGPOINT:AFASTERTRANSITIONTHANEUROPE

TheGulf’strajectoryisaddressingmisconceptionsoftenrepeatedinglobalnarratives.Astheregion’stransitionisnotonlyunderwaybutacceleratingatarateunmatchedbymanyadvancedeconomies.TheGCCcountriesareatacriticalturningpoint.Longdefinedbytheirhydrocarbonwealththeyarenowparadoxicallypositioningthemselvesasgloballeadersinsustainabledevelopmentandclimateinnovation

8

.Thereasonissimple;thistransformationisnotamatterofimage;itisastrategicnecessity.

Asmentionedearlier,theregionisfacingmountingclimaterisks(extremeheat,waterscarcity)andgrowingglobalpressuretodecarbonize.Consequently,GCCcountriesarerapidlytransitioningawayfromfossilfueldependency

9

.Thisgreenturningpointisnotoptional;itisanationalimperativetoprotectvulnerablepopulations,preservefragileecosystems,andensurelong-termeconomicresilienceinacarbon-constrainedworld.ThetransformationofthestructureoftheGDPoftheGCCcountrieshasbeendrivenataveryfastpace:in2013,theGDPshareofnon-oilwas54,4%

10

.Thisshareraisedto65%in2022and71,5%in2023

11

.Thisspeedofchangeisuniqueinthe21stcenturyforagroupofcountries.

WhatdistinguishestheGulf’sapproachisnotonlythescaleofambitionbutalsothespeedandpragmatismwithwhichitisbeingimplemented.Indeed,theGulfcountriesaregovernedbyauthoritariangovernmentsthatcanbecriticisedonmanypointsbutthankstocentralizedgovernance,substantialfinancialresources,andstreamlineddecision-making,GCCcountriescanlaunchandscaleprojectswithalevelofefficiencythatoftensurpassesthatofmoredecentralizedsystems,particularlyinpartsofEurope.Thiscombinationofurgency,institutionalcapacity,andstrategicclarityisenablingtheGCCnotonlytoleadtheregionbuttoshapeglobalnarrativesaroundwhatclimateleadershipcanlooklikeinthe21stcentury,especiallyforresource-richeconomiesintransition.

A.ECONOMICDIVERSIFICATIONASSTRATEGICIMPERATIVE

ThisdiversificationalreadyreflectstheGulf’sevolutionfrombeingperceivedaspartoftheclimatechallengetobecominganindispensablepartnerintheglobalsolution.Therearenumerousexamplesofboldclimatepolicies,andwewillpresentafewofthembelow.Forinstance,theUAEwasthefirst

8ESGNews,“ForbesMoyen-Orientrévèlesesleadersenmatièrededéveloppementdurablepour2024“,,ActualitésESG,14Oct.2024,

/fr/Forbes-Moyen-Orient-r%C3%A9v%C3%A8le-ses-leaders-en-

mati%C3%A8re-de-d%C3%A9veloppement-durable-2024/.

9HACHE(E.),RAMDANI(S.)etal.,Report|LesstratégiesénergétiquesetminièresdesétatsduGolfeetleursrépercussionssurlasécuritédesapprovisionnementsenFrance,Observatoiredelasécuritédesfluxetdesmatièresénergétiques,April2025,

/les-strategies-energetiques-et-minieres-des-etats-du-golfe-et-leurs-repercussions-sur-la-

securite-des-approvisionnements-en-france/.

10GCC-STAT,AnnualReport|GCCNationalAccountsfortheyear2017,n?4,June2019,83p.,p.17,Figure3,

/images/gccstat/docman/publications/national_account-en.pdf.

11HASSAN(N.),“GCCnon-oilsectoradds$1.5tntoGDP,ledbymining”,ArabNews,17Aug.2025,Business,

/node/2612103/business-economy.

4

countryintheMENA(MiddleEastandNorthAfrica)regiontocommittoachievingcarbonneutralityby2050

12

.Thiscommitmenthasbeensupportedbymorethan$40billionincleanenergyinvestmentsoverthepast15years

13

.Cleancapacityhasgrownfrom100MWin2015toover4GWin2025,withanationaltargetof14GWby2030

14

.TheUAE’sEnergyStrategy2050aimstoproducehalfofitselectricityfromcleansources,including44%renewableenergyand6%nuclearpower

15

.ProjectssuchastheBarakahnuclearpowerplant,whichalreadyprovidesaboutaquarterofthecountry’selectricity

16

,andthemassiveMohammedbinRashidSolarPark,expectedtoreach5GWby2030

17

,reflectthisambition.The2GWAlDhafrasolarpowerplantalonepowersmorethan200,000homesandavoids2.4milliontonsofCO?emissionsannually

18

.MasdarCityinAbuDhabicontinuestogrowasaregionalhubforcleantechstartups,hometomorethan900companiesandpoweredbysolarenergyandsustainabledesign

19

.

SaudiArabiahasalsomadeclimatechangeacorecomponentofitsVision2030developmentstrategy.TheKingdomaimstobecarbonneutralby2060,thankstomorethan$180billioningreeninvestments

20

.Itsrenewableenergytargetsaimtoincreasetonearly59GWby2030

21

.ProjectssuchastheSudairsolarpowerplant(1.5GW),Sakaka(300MW),andDumatAl-Jandal(400MW)

22

arealreadycontributingtothisgoal.TheNEOMmegacityprojectincludesoneoftheworld’slargestgreenhydrogenfacilities,expectedtoproduceupto600tonsofcleanhydrogenperdayby2026

23

.

12AMSILI(S.),“Climat:lesEmiratsarabesuniss’engagentàatteindrelaneutralitécarboned’icià2050”,LesEchos,8Oct.2021,

https://www.lesechos.fr/monde/afrique-moyen-orient/climat-les-emirats-arabes-unis-sengagent-a-atteindre-la-neutralite-

carbone-dici-a-2050-1353425.

13InvestinDubai,“énergiesettechnologiespropres”,.ae,Industries,

.ae/fr/industries/energy-and-cleantech.

14DirectiongénéraleduTrésor,“LesénergiesrenouvelablesauxEmiratsArabesUnis”,tresor.economie.gouv.fr,Trésor-Info,10May2024,

https://www.tresor.economie.gouv.fr/Articles/2024/05/10/les-energies-renouvelables-aux-emirats-arabes-

unis.

15Ibid.

16Energynews,“Lesémiratsarabesunisinaugurentlapremièrecentralenucléairearabe”,,énergieNucléaire,6Sept.2024,

/les-emirats-arabes-unis-inaugurent-la-premiere-centrale-nucleaire-arabe/.

17AGUENIER(M.),“LesPlusGrandsParcsSolairesauMonde”,,énergieSolaire,29July2022,

/les-plus-grands-parcs-solaires-au-monde/.

18Connaissancedesénergies,“AlDhafra,vitrinesolairedesémiratsarabesunisavantlaCOP28”,,InnovationsetInsolites,27Nov.2023,

/al-dhafra-

vitrine-solaire-des-emirats-arabes-unis-avant-la-cop28-241104.

19Planèteénergies,“MasdarCity:uneville(laboratoire’”,,23Feb.2024,

https://www.planete-

/fr/media/article/masdar-city-ville-laboratoire.

20Connaissancedesénergies,“L’Arabiesaouditeviselaneutralitécarboned’icià2060”,,L’essentieldel’actualité,23Oct.2021,

/afp/larabie-saoudite-vise-la-neutralite-

carbone-dici-2060-211023-2.

21OxfordBusinessGroup,“GlobalenergyleaderSaudiArabiainvestsinrenewables”,TheReport:SaudiArabia2023,2023,

/reports/saudi-arabia/2023-report/energy-utilities/switched-on-the-kingdom-remains-a-

key-player-in-the-global-energy-market-and-is-securing-its-future-by-investing-in-renewables-overview/.

22Ibid.

23Connaissancedesénergies,“EnArabieSaoudite,lespremièreséoliennesarriventàl’usined’hydrogènevertdeNeom”,,L’essentieldel’actualité,11Oct.2023,

/afp/en-

arabie-saoudite-les-premieres-eoliennes-arrivent-lusine-dhydrogene-vert-de-neom-231010.

5

Meanwhile,SaudiArabiaisalsoinvestinginlarge-scalecarboncaptureandstorage(CCS),aimingtoeliminate44milliontonsofCO?peryearby2035

24

.

Qatar,traditionallyoneoftheworld’slargestpercapitaCO?emitters,ischangingcoursewithitsNationalVision2030andClimateActionPlan.Ithascommittedtoreducingitsgreenhousegasemissionsby25%by2030

25

andisexpandingitssolarcapacity,aimingtoreach30%ofitselectricitybythatyear

26

.The800MWAlKharsaahSolarParkalreadyoffsets900,000tonsofemissionsannually

27

.Anew2GWsolarprojectisunderwayinDukhan

28

,andQatarEnergyisdevelopingblueammonia

29

andcarboncaptureinitiatives

30

.QatarisalsoaleaderinclimatefinanceinnovationthroughtheGlobalCarbonCouncil,whichprovidescarboncreditcertificationservicesacrosstheregion.

B.OTHERGULFCOUNTRIESAREALSOACCELERATINGTHEIRDEVELOPMENT.

Economicdiversificationisnotlimitedtothecountriescitedasexamplesintheprecedingparagraphs.Othercountriesintheregionareacceleratingtheirdevelopment,asillustratedbelow.Oman’sVision2040seekstoreduceoildependencethroughdiversificationintotourism

31

,logistics,andmanufacturing,withplanstoinvest$31billionintourismalone.ThecountrylaunchedHydrogenOman(Hydrom),aplatformthathasalreadyawardedprojectstotalling18GWofrenewableenergyandaimstoproduce1milliontonsofgreenhydrogenannually

32

.

Bahrainistargeting10%renewableenergyby2035andisinvestinginrooftopsolar,waste-to-energypilotprojects,andoffshorewindfeasibility

33

.

24HELMAN(Ch.),“SaudiAramcos’engage-t-ellevéritablementdanslatransitionécologiquemalgrésadominationdanslesecteurpétrolier?”,Forbes,Business,Sustainability,20June2024,trad.DELEFORTERIE(L.),

https://www.forbes.fr/business/analyse-saudi-aramco-sengage-t-elle-veritablement-dans-la-transition-ecologique-malgre-

sa-domination-dans-le-secteur-petrolier/.

25MinistryofMunicipalityandEnvironement,QatarNationalClimateChangeActionPlan2030,Sept.2021,69p.,p.14.

26Connaissancedesénergies,“Qatar:unenouvellecentralesolairepourdoublerlescapacitésrenouvelablesdupaysd’icià2030”,,L’essentieldel’actualité,2Sept.2024,

/afp/qatar-une-nouvelle-centrale-solaire-pour-doubler-les-capacites-

renouvelables-du-pays-dici-2030-240901.

27PowerTechnology,“Powerplantprofile:AlKharsaahSolarPVPark,Qatar”,,

https://www.power-

/data-insights/power-plant-profile-al-kharsaah-solar-pv-park-qatar/.

28Connaissancedesénergies,“Qatar:…”,op.cit.

29DirectiongénéraleduTrésor,op.cit.

30MinistryofMunicipalityandEnvironement,op.cit.,p.31.

31Courrierinternational,“DansleGolfe,leboomtouristiqueaura-t-illapeauducampingtraditionnel?”,,économie,15Aug.2024,

/article/societe-dans-le-golfe-le-

boom-touristique-aura-t-il-la-peau-du-camping-traditionnel_220501.

32Omanet,“Oman’sHydromSecuresImpactHydrogenProjectAward2025:OpportunitiesforInvestorsinCleanEnergy”,omanet.om,News,6Sept.2025,

https://omanet.om/en/news/business/omans-hydrom-2025-hydrogen-award/.

33JOANTEGUY(S.),“LeBahre?ntransformesonécosystèmeénergétique”,,énergiesfossiles,24June2022,

/le-bahrein-transforme-son-ecosysteme-energetique/.

6

Kuwaitplanstoincreasetheshareofrenewableenergyto15%ofitsmixby2030,withmajorinvestmentsintheAlShagayaEnergyParkandtwo5000MWphotovoltaictenderscurrentlyunderway

34

.

Acrosstheregion,solar-powereddesalination,smartgridinvestments,andnewelectricmobilityplatformsareemergingatscale.Batterystorage,gridinterconnection,andAI-drivendemand-sidemanagementarebecomingessential.SaudiArabiaispilotinglarge-scalestorageatNEOM,whileTAQA,aholdingcompanycombiningtheenergyassetsoftheUnitedArabEmiratesintheisinvestingingridmodernizationtosupportvariablerenewableenergy.

REGIONALINTEGRATIONANDGLOBALENGAGEMENT

Thegreentransitionisalsotakingonagrowingregionaldimension.TheGCCInterconnectionAuthorityisexpandinghigh-voltagelinksamongmemberstates,enablingelectricityexchangesandthecross-borderoptimizationofsolarandwindresources

35

.Notably,projectslikethe$660millionSaudi-Omaniinterconnectorwillfacilitatesharedaccesstocleanenergycapacityandenhanceenergysecurity

36

.Ontheglobalstage,Gulfcountriesareassertingthemselvesasactiveclimateactors.TheUAE’sleadershipatCOP28in2023ledtothecreationoftheALTERRAClimateFund,a$30billionplatformaimedatmobilizing$250billioninglobalclimatefinanceby2030

37

.QatariscontributingtotheUNGreenClimateFund,andOmanispartneringwithIndiaandJapantoco-developcleanenergyinfrastructure.SaudiArabia,throughitsPublicInvestmentFundandSaudiGreenInitiative,hascommittedbillionstoclimatetechnologiesandreforestationefforts

38

.

Meanwhile,theregionisalsopositioningitselfasafutureleaderinglobalcarbonmarkets.TheUAEislaunchingavoluntarycarbontradingplatformthroughtheAbuDhabiGlobalMarket,whiletheQatarGlobalCarbonCouncilisestablishinghigh-integrityoffsettingstandards.

Thisproactiveinternationalengagementreflectsastrategicrecognition:theGulf’ssustainabledevelopmentagendaisnotonlynational,butalsoaleverofgeopoliticalandeconomicinfluence.

Beyondpublicmegaprojects,privatesectorstartupsandSMEsaregainingground.TheGulf’sgreentechnologyecosystemisgrowing,withincubatorslikeHub71andFlat6Labssupportingprojectsin

34ServiceéconomiqueduKowe?t,“L’impactdelacriseCovid-19surlesgrandsprojetsauKowe?t”,tresor.economie.gouv.fr,Trésor-International,29March2023,

https://www.tresor.economie.gouv.fr/Pays/KW/secteurs-porteurs-de-l-economie-

koweitienne.

35GCCInterconnectionAuthority,“OurStrategy”,.sa,Whoweare,

.sa/about-us/strategy/.

36ArabNews,“Omantoreceiveelectricityconnectionboostafter$500mGCCgrid”,,Business,12Sept.2025,

/node/2615065/business-economy.

37CURNIS(K.),“Monde:leplusgrandfondsclimatiqueprivépeineàtrouverdesopportunitésd’investissementsenAfrique”,,Monde,22Nov.2024,

/monde/monde-le-plus-grand-fonds-climatique-prive-peine-a-

trouver-des-opportunites-dinvestissements-en-afrique/.

38Programmepourl’environnementdesNationsUnies,“L’Arabiesaoudites’efforcedereverdirlesdésertspourluttercontrelasécheresseetladégradationdessols”,,Actualités,récitsetdiscours,6May2024,

/fr/actualites-et-recits/recit/larabie-saoudite-sefforce-de-reverdir-les-deserts-pour-lutter-contre-la.

7

energyefficiency,smartagriculture,andcarbonmonitoring.However,tofullyunlockthispotential,improvingSMEs’accesstogreenfinancingwillbecriticaltoacceleratelocallydrivensolutions.

Thiseconomicdynamismisalreadyvisibleinmacroeconomicdata.In2024,thenon-oilsectoracrosstheGCCgrewby3.7%,outpacingtheregion’soverallGDPgrowthof1.8%

39

.Thesefiguresvalidatethestrategicshiftunderway:diversificationisnotonlyaclimatenecessity,butalsoagrowthengine.

However,astheGulfmovestowardgreenenergy,itisessentialtoensureajustandinclusivetransition.Reskillingprograms,thecreationoflocaljobsinrenewableenergy,andtheinclusionofunderrepresentedgroups,particularlywomenandyouth,willdeterminetheequitablesharingofthebenefitsofthegreeneconomy.InitiativessuchasSaudiArabia’sHumanCapacityDevelopmentProgramandtheUAE’scommitmenttoreformingSTEM(Science,Technology,Engineering,Mathematics)educationareessentialtopreparingtheworkforceforthefuture.

I1I.FINANCINGTHETRANSITION:ANABUNDANCEOFCAPITAL

Thesenationalvisionsareunderpinnedbyarapidlyevolvingfinancialecosystem.GreenandsustainablefinanceintheGulfhasgrownsignificantlyoverthepastfiveyears.In2023alone,GCCcountriesissuedover$15,5billioningreenbonds,arecord

40

.TheUAEledtheregionwith$8.7billioninissuance,nearlydoublethe2022figure,closelyfollowedbySaudiArabiawith$6.7billion

41

.Thiswaveoffinancingw