Dimensions of Sustainable Development in Rationalizing Decisions to Grant Green Finance in Saudi Banks

Abstract

Green financing represents a great untapped opportunity, especially in Saudi Arabia and the other Gulf Cooperation Council countries, which are characterized by their developed capital markets, attracting investors from all over the world to pump their capital into projects that have an environmental and social impact, in addition to activating strong governance processes.The study aimed to examine the impact of the dimensions of sustainable development: environmental, social, and economic on green finance in Saudi national banks and fill the gap in sustainability and green finance research in Arabian countries, specifically in the Kingdom of Saudi Arabia. The study population covered the national banks in Riyadh city. The data was collected through a questionnaire and the sample size was 125 participants. The study applied linear regression models and the result revealed that the environmental dimension of sustainable development, the social dimension of sustainable development, and the economic dimension have a positive impact on green finance in Saudi banks.