The Impact of ESG Reforms on Economic Growth in GCC Countries: The Role of Financial Development

Abstract

This study explores how ESG reforms impact economic growth in GCC countries, using annual data from 2000 to 2022 and analyzing the role of financial development in supporting these effects. Applying a fixed effect technique, results reveal that ESG factors contribute significantly to economic growth, with financial development further strengthening this relationship. Findings suggest that aligning ESG practices with financial development can foster a resilient and sustainable growth model for the GCC, underscoring the importance of economic diversification and robust governance. This research offers unique insights into tailoring ESG policies for resource-dependent economies, paving the way for further studies on ESG adaptation in similar contexts.