Unleashing the Potential of Saudi Municipal Finance Toward Sustainable Urban Environments: Barriers and Strategies

Abstract

Saudi Arabia’s rapid urbanization driven by Vision 2030 demands sustainable municipal finance systems. Using a mixed-methods analysis, this study analyzes 360 expert perspectives and identifies the key challenges of fiscal centralization (β = –0.14), governance deficits (20.2% variance), and overreliance on centralized funding (31.8% variance). However, decentralization (β = 0.31), policy alignment with Vision 2030, and green finance tools emerge as transformative pathways. Regression and correlation analyses reveal that municipal autonomy and legal frameworks are crucial in promoting sustainability integration. This study advocates for fiscal decentralization, Sharia-compliant green bonds, and institutional reforms and offers useful insights for policymakers.