Green credit lines in the Gulf Cooperation Council: evaluating opportunities, overcoming challenges, and assessing the impact on energy transition in Qatar

Islam Mohamed Mahmoud and Quosay Awad Ahmed

Chapter 7 in Economic Challenges in the Gulf Cooperation Council Countries, 2026, pp 134-166 from Edward Elgar Publishing

Abstract: This chapter examines the potential of Green Credit Lines (GCLs) to drive Qatar's transition to a sustainable economy, aligning with its ambitious renewable energy (RE) targets. The chapter has developed a comparison method to assess the potentiality of establishing GCLs within the Gulf Cooperation Council (GCC), named GCL Implementation Potential Index (GCLIPI). The GCLIPI incorporates three factors: Financial Institutions Performance, evaluates the readiness of financial institutions (FIs) based on their financial performance and commitment to sustainability; Governmental Frameworks, analyzing supportive policies such as national green finance strategies and GCL regulations; FIs Internal Capacities, evaluating technical expertise in green project assessments and the availability of green project pipelines. These factors are qualitatively assessed to judge the potentiality of establishing GCLs by the FIs. Based on that, a GCL Potential Impact Indicator (GCPII) combines the GCLIPI with Qatar's RE Target Ambitiousness to evaluate the potential energy transition impact of GCLs. A comparative analysis of Qatar, the United Arab Emirates (UAE), and Saudi Arabia (KSA) reveals that the UAE is the only country among the three with existing GCL products, giving it an early implementation advantage. While all three nations have promising green project pipelines and ambitious RE targets, Qatar's targets are the most ambitious. However, Qatar faces challenges in governmental frameworks compared to the KSA. Strategic development of green finance frameworks and regulations is essential for Qatar to bridge these gaps and maximize the impact of GCLs in achieving its clean energy goals.

Keywords: Green Credit Lines; GCLs; Renewable Energy (RE); RE; Energy Transition; GCL Implementation Potential Index (GCLIPI); GCL Potential Impact Indicator (GCLPII); Financial Sector; Qatar; Gulf Cooperation Council (GCC) (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035358434
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