Exploring Sustainable Finance Practices Toward Building A Resilient Blue Economy In The MENA Region: Opportunities, Challenges, And Policy Recommendations

Abstract

The Blue Economy is emerging as a vital pillar of sustainable economic growth and climate resilience across the Middle East and North Africa (MENA) region. With vast marine resources and strategic coastlines, countries such as the United Arab Emirates, Saudi Arabia, Oman, Kuwait, Bahrain, Egypt, Morocco, and Algeria are seeking to leverage ocean-based industries for economic diversification and environmental stewardship. However, critical challenges—including the absence of adequate financial instruments, fragmented policy frameworks, and limited investment de-risking mechanisms—continue to hinder the region’s capacity to unlock the full potential of the Blue Economy.

This research examines the role of sustainable finance in building a resilient Blue Economy in the MENA region. Using a mixed-method approach that integrates qualitative case study analysis and quantitative investment trend data, the study investigates the deployment of innovative financial tools such as blue bonds, green Sukuk, impact investing, and blended finance. These instruments are enabling investment flows into marine biodiversity conservation, sustainable fisheries, offshore renewable energy, and climate-resilient maritime infrastructure.

Findings reveal varying levels of ESG integration across the region, with some countries advancing policy innovation while others face regulatory and institutional bottlenecks. The study proposes strategic policy recommendations, including the need for harmonized blue finance frameworks, enhanced public-private partnerships, and capacity-building initiatives.

Furthermore, the research highlights the strategic role of Higher Education Institutions (HEIs) in advancing interdisciplinary knowledge, financial innovation, and policy engagement. This paper contributes to the regional policy discourse by offering actionable insights to strengthen sustainable ocean resource management and foster long-term economic and ecological resilience.