Islamic Green Financing Boosts Renewable Energy in Gulf Cooperation Council Nations

A new study has investigated the contribution of Islamic green financing (IGF) to renewable energy in the Gulf Cooperation Council nations from 2019 to 2023. The research aimed to promote a transition to a low-carbon economy by examining the impact of IGF on solar-based renewable technologies through energy efficiency and climate policy. The study found that IGF enhances energy efficiency and climate policy, promoting a transition to a low-carbon economy.

Key Takeaways:

• The Natural Resource Based-View addresses strategic questions regarding resources, capabilities, and firms most suited to build dynamic capabilities for clean technologies.
• The study used a fixed effect approach to examine individual effects and time heterogeneity, finding that IGF enhances solar-based renewable technologies.
• The dynamic capabilities view is used to conceptualize green orientation (reflected in national climate policy), while the Natural Resource Based-View conceptualizes managerial environmental commitment (reflected in IGF), product stewardship (reflected in energy use), and eco-innovation (reflected in renewable energy) within a unified framework.
• The study advocates for energy justice in climate policy and energy structure reformation, ensuring an equal distribution of benefits.
• IGF reforms the energy competition structure by enabling new entrepreneurs to compete with established enterprises in energy technologies, resulting in more effective and efficient products, services, and prices.
• The study fills the important gaps of product stewardship and sustainable development strategies in Natural Resource Based-View studies and expands the Natural Resource Based-View body of knowledge by systematically linking financial resources and sustainable development in clean technology.
• The research concluded that IGF has an understudied impact on renewable energy via national climate policy and energy efficiency.

Statistics:

• The study examined the contribution of IGF to renewable energy in the Gulf Cooperation Council nations from 2019 to 2023.
• The research used a fixed-effect model to examine individual effects and time heterogeneity, finding that IGF enhances solar-based renewable technologies.
• The study found that IGF reforms the energy competition structure, enabling new entrepreneurs to compete with established enterprises in energy technologies.

Sources:

• VerticalNews (July 4, 2025)
• Sustainability Accounting Management and Policy Journal (2025)
• Mae Fah Luang University, School of Management, Chiang Rai, Thailand
• Emerald Group Publishing Ltd, Floor 5, Northspring 21-23 Wellington Street, Leeds, W Yorkshire, England
• NewsRx LLC