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Toward the Adaptation of Green Bonds in the Saudi Municipal System: Challenges and Opportunities

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  • Abdulkarim K. Alhowaish

    (Department of Urban and Regional Planning, College of Architecture and Planning, Imam Abdulrahman Bin Faisal University, Dammam 31441, Saudi Arabia)

Abstract

This study explores the adoption of green bonds within Saudi Arabia’s municipal sector, situated at the intersection of centralized governance, fossil fuel dependency, and ongoing sustainability reforms under Vision 2030. Employing a mixed-methods approach, this research integrates quantitative and qualitative insights from expert survey data to uncover key institutional, market, and stakeholder dimensions influencing green bond uptake. The findings reveal an emerging framework shaped by regulatory capacity, global integration, and risk perceptions. Rather than focusing solely on statistical outputs, this study highlights how governance structures, economic diversification efforts, and stakeholder alignment collectively shape the trajectory of green finance adoption. Practical implications include the need for harmonized regulatory frameworks, enhanced transparency through ESG standards, and stronger public–private collaboration. While focused on Saudi Arabia, this study offers broader lessons for green bond integration in similarly structured, resource-dependent economies.

Suggested Citation

  • Abdulkarim K. Alhowaish, 2025. "Toward the Adaptation of Green Bonds in the Saudi Municipal System: Challenges and Opportunities," Sustainability, MDPI, vol. 17(13), pages 1-21, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:13:p:5698-:d:1683880
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    References listed on IDEAS

    as
    1. Abdulkarim K. Alhowaish & Fatimah S. Alkubur, 2025. "Unlocking the Potential of the Circular Economy at Municipal Levels: A Study of Expert Perceptions in the Dammam Metropolitan Area," Sustainability, MDPI, vol. 17(10), pages 1-24, May.
    2. Juan Camilo Mejía-Escobar & Juan David González-Ruiz & Giovanni Franco-Sepúlveda, 2021. "Current State and Development of Green Bonds Market in the Latin America and the Caribbean," Sustainability, MDPI, vol. 13(19), pages 1-25, September.
    3. World Bank, 2022. "Egypt - The First Sovereign Green Bond in the Middle East and North Africa," World Bank Publications - Reports 38429, The World Bank Group.
    4. World Bank, 2021. "Toolkits for Policymakers to Green the Financial System," World Bank Publications - Reports 35705, The World Bank Group.
    5. Abdulkarim K. Alhowaish, 2025. "Green Municipal Bonds and Sustainable Urbanism in Saudi Arabian Cities: Toward a Conceptual Framework," Sustainability, MDPI, vol. 17(9), pages 1-14, April.
    6. Jianzhuang Zheng & Muhammad Usman Khurram & Lifeng Chen, 2022. "Can Green Innovation Affect ESG Ratings and Financial Performance? Evidence from Chinese GEM Listed Companies," Sustainability, MDPI, vol. 14(14), pages 1-32, July.
    7. World Bank & Institute of Finance and Sustainability, 2022. "Unleashing Sustainable Finance in Southeast Asia (November 2022)," World Bank Publications - Reports 38341, The World Bank Group.
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