nep-isf New Economics Papers
on Islamic Finance
Issue of 2026–04–13
one paper chosen by
Ali Polat, Ankara Yıldırım Beyazıt Üniversitesi


  1. Islamic Finance and Green Investment in GCC Countries: Empirical Insights into Sustainable Development Using GMM Estimation By Saida Daly

  1. By: Saida Daly ("Department of Economics and Finance, College of Business and Economics, Qassim University, P.O. Box 6640, Buraidah 51452, Qassim, Saudi Arabia Department of Economics Faculty of Economic Sciences and Management of Mahdia, University of Monastir, Monastir 5000, Tunisia" Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This study investigates the role of Islamic finance and green investment in promoting sustainable development in the Gulf Cooperation Council (GCC) countries. Grounded in Shariah principles such as risk-sharing and ethical investment, Islamic finance provides a viable framework for supporting environmental transformation. Methodology/Technique – The GCC region provides a relevant context given its strong Islamic financial systems, hydrocarbon dependence, and sustainability-oriented national strategies. Using panel data from 2005 to 2022, the study employs a dynamic panel model estimated through the Generalized Method of Moments (GMM) to examine the effects of Islamic finance and green investment on CO₂ emissions per capita and renewable energy consumption, while controlling for GDP per capita, trade openness, and institutional quality. Findings – The findings indicate that Islamic finance and green investment significantly reduce emissions while promoting renewable energy adoption. Novelty – This study contributes to the literature by jointly examining their roles in shaping both environmental quality and energy transition in GCC countries, an area that remains underexplored. Type of Paper - Empirical"
    Keywords: Islamic finance, GCC, green investment, sustainability, SDGs, GMM estimation
    JEL: G21 Q43 Q56 O13
    Date: 2026–03–31
    URL: https://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr234

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