This study explores the role of Environmental, Social, and Governance (ESG) standards and Giga Projects in shaping Saudi Arabia's economic transformation under Vision 2030. By bridging theoretical perspectives with practical implementation, the paper investigates how ESG frameworks align with national objectives of diversification, sustainability, and private sector growth. The analysis reviews global ESG theories, situates them within Saudi Arabia's unique development agenda, and examines initiatives such as Tadawul's ESG disclosure framework, the Public Investment Fund's sustainability strategies, Aramco's carbon neutrality pledges, and NEOM's giga-projects. Success stories in renewable energy projects and disclosure adoption are contrasted with challenges, including regulatory gaps, cultural adaptation, and uneven uptake across firms. Comparative insights reveal that Saudi Arabia's ESG trajectory demonstrates significant ambition but requires stronger governance, transparency, and societal integration to match global best practices. The study concludes that ESG can act as a cornerstone of Vision 2030, enhancing investor confidence, advancing sustainable growth, and ensuring the Kingdom's long-term competitiveness in the global economy. Future research directions are proposed, focusing on ESG performance metrics in GCC economies, green finance mechanisms, and societal acceptance of sustainability initiatives.
Ali et al. (Thu,) studied this question.