From policy vision to innovation practice: An integrated framework for governing the circular–digital transition in the UAE

Rapid urbanization, resource pressure, and technological transformation in the Gulf region highlight the need for coherent strategies that link sustainability policy with digital innovation. This study develops a novel Integrated Policy–Innovation Framework that connects circular economy (CE) principles with Industry 4.0 (I4.0) technologies such as artificial intelligence, the Internet of Things, and blockchain. The framework aims to operationalize innovation-driven sustainability governance in the United Arab Emirates (UAE). By aligning digital transformation with sustainability goals, the framework enables data-driven decision-making, predictive modeling, and cross-sector collaboration, laying the foundation for an innovation-led transition toward circular and resilient systems. The study adopts a mixed-method approach, combining bibliometric and critical analyses to examine sustainability and innovation policies across the Gulf Cooperation Council (GCC) region. It also includes an in-depth review of UAE national policy documents and sixteen semi-structured interviews with experts and policymakers. Findings show that while digital tools enhance data-driven decision-making, cross-sector collaboration, and performance monitoring, implementation remains constrained by institutional fragmentation, data-governance gaps, and limited policy alignment. The proposed framework integrates technological, institutional, and innovation mechanisms to strengthen evidence-based policymaking and accelerate CE–I4.0 adoption. It provides a structured pathway that links policy vision with innovation practice, enabling circular, low-carbon, and resilient systems across sectors. By bridging sustainability policy and digital transformation, this study contributes a governance model that supports the UAE’s transition toward long-term environmental resilience and innovation leadership. It also offers transferable insights for other emerging economies pursuing circular and digital transformation.