Innovations in Business and Strategic Management

ABSTRACT

In recent years, Environmental, Social, and Governance (ESG) principles have gained significant global traction as a critical framework for responsible and sustainable corporate behavior. As governments and institutions worldwide pivot towards inclusive and long-term value creation, ESG has evolved from a voluntary commitment into a strategic priority for corporate boards. In the context of the Gulf region, particularly the United Arab Emirates, there is a noticeable shift as regulators and industry leaders integrate ESG frameworks into corporate governance systems. Driven by national visions such as the UAE Net Zero 2050 and Dubai Economic Agenda (D33), organizations are increasingly aligning governance structures with sustainability and ethical accountability. This review aims to explore the evolving relationship between ESG and corporate governance within the Gulf region, with a focus on emerging policies, institutional efforts, and board-level adaptations. Drawing on recent developments and regional initiatives, the review highlights the progress, challenges, and opportunities associated with ESG integration. Key insights reveal that while regulatory frameworks are advancing, gaps in awareness, board expertise, and implementation capacity remain. The paper concludes by identifying strategic pathways for enhancing ESG-driven governance to support sustainable economic growth in the Gulf.

Article History

Received 01 October 2024; Revised 24 October 2024; Accepted 31 October 2024

KEYWORDS

1. ESG (Environmental, Social, Governance)
2. Corporate governance
3. Gulf region
4. Sustainability reporting
5. UAE business policy