Green sukuk in Saudi Arabia: Challenges and potentials of sustainability in the light of Saudi Vision 2030

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Abstract

This research aimed to provide insights into the green sukuk in Saudi Arabia regarding its challenges and potential of sustainability in the light of Saudi Vision 2030 for financing green projects. Moreover, it examines the current framework adopted by the Saudi Electricity Company (SEC) for facilitating transition to a low–carbon economy and circular economy, empowering communities, and enabling responsible business practices. Due to the nature of the topic, the research followed the descriptive research design. The results indicated that the issuance of green sukuk faces some challenges including lack of a clear definition, lack of awareness of its benefits, absence of a standard for measuring it, lack of institutional capacity, and the long time required to structure and legalize it. Consequently, a clear definition and measurement standard should be presented. Furthermore, the results of this research have implications for researchers, governments, policymakers, industries, businesses, investors and regulators regarding the development and raising of green sukuk.

Keywords: Green Sukuk, Challenges, Potentials, Sustainability, Saudi Vision 2030

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: O16

Received: 13.04.2023
Accepted: 08.12.2023
Published online: 12.12.2023

How to cite this paper: Shalhoob, H. (2023). Green sukuk in Saudi Arabia: Challenges and potentials of sustainability in the light of Saudi Vision 2030 [Special issue]. Journal of Governance & Regulation, 12(4), 351–360. https://doi.org/10.22495/jgrv12i4siart15