Reconsidering Sustainability in the GCC: Green–Blue Economy Synthesis as a Driver of Change

Abstract

Gulf Cooperation Council (GCC) economies are in search of a strategic transformation towards sustainability, hoping to achieve equilibrium between economic diversification and environmental conservation as well as marine ecosystems. Green-blue economic relationship and its role towards sustainable economic transformation among the six Gulf Cooperation Council (GCC) nations from 2000-2024 are examined through this study. With a balanced panel dataset, analysis subjects the data to the panel cointegration test to examine long-run equilibrium relationships and applies System-GMM (Generalized Method of Moments) to identify causality as well as short-run dynamics, while also controlling for potential serial and cross-sectional dependence. The blue economy's leading indicators (fishery productivity, coastal tourism, and maritime trade) and the green economy's leading indicators (energy efficiency, renewable energy capacity, and carbon emissions) are integrated into a general framework of sustainability. Experiments indicate a strong positive relationship between blue and green economic activities, and between increased renewable energy and sustainable marine use, that raises environmental and economic resilience. However, the extent of this synergy varies across countries depending on the institutions' quality, environmental management, and investments in green-blue innovation. The study concludes that green-blue convergence is a sustainable pathway to achieving the Gulf Cooperation Council's long-term sustainable objectives, requiring converged policies, green financial instruments, and regional systems of innovation to propel the post-oil diversified economy.