Barriers and drivers of ESG strategy adoption in the MENA region: leadership perspectives and strategic implications [Abstract]

Through interviews, this study investigates the perceived barriers to the implementation of Environmental, Social, and Governance (ESG) strategies within a Middle East and North Africa (MENA) context, focusing on the perspectives of industry leaders. As the global push toward sustainability accelerates, with the United Nations' Sustainable Development Goals (UN SDGs) setting targets for 2030, organisations in the region face unique challenges in aligning their strategies with evolving, non-standardised, regulations, stakeholder expectations, and infrastructural limitations. Drawing insights from 11 senior ESG advocates in diverse sectors such as banking, engineering, transportation, and technology, this research identifies key obstacles, including regulatory complexity, lack of awareness, infrastructural constraints, and data accuracy and availability, that impede ESG adoption. Participants highlighted the significant influence of diverse and often fragmented frameworks, which hinder standardisation and transparency. Furthermore, the study discusses the critical role of stakeholder buy-in, the need for tailored ESG approaches suited to the region’s socio-economic landscape, and the potential of emerging technologies like AI to lower costs and improve impact measurement. The findings underscore that leadership commitment, clear purpose, and effective communication are fundamental for overcoming these barriers. The thematic analysis uncovered that harmonising regional regulations, building stakeholder engagement, and adopting innovative solutions are vital to advancing ESG strategies. It contributes to academic discourse by providing region-specific insights and offers practical recommendations for corporate leaders seeking to navigate the complex ESG landscape. Ultimately, this research shows that aligning profitability, economic ambitions and sustainability targets, are vital to building a resilient and responsible business environment that aligns with MENA sustainability goals.