The research is aimed at comparing residential building windows’ thermal performance with and without thermal shutters, and at examining thermal shutters’ performance upon being insulated with various types of insulation, glares, outside temperatures, and solar radiation. As an example, one case study based out of the UAE is chosen, covering the status of the housing typology and traits of building energy consumption. The study uses the primary tool of computer simulation software “DesignBuilder” to examine the impact of window shutters design on energy consumption and environmental impact. It was found that the usage of conventional insulating materials within the shutters is sufficient for the house to attain a reduction in heat gain of up to 50%. Furthermore, the application of the rolling shutters with analyzed control strategies recorded a potential reduction in equivalent CO2 emissions level, up to 15%, which would decrease the environmental burden on a national level. The simulations have shown high insulating materials did not differ much in the reduction in energy when running a simulation for a whole unit of housing rather than experimenting a window unit separably as reviewed in the literature. The findings can be applicable to other regions with similar climatic conditions and cultural constraints, such as those of the Middle East and the GCC countries.