Ethical governance implementation in MENA countries: institutional frameworks, cultural dynamics, and performance outcomes in the post-2021 era

Purpose This study explores how ethical governance frameworks operate in environmental, social and governance (ESG) areas in Middle East and North Africa (MENA) nations. This study focusses on present systems, cultural changes and outcomes since 2021. This study examines how traditional governance aligns with modern ethical values to promote accountability in the region. Design/methodology/approach This study employed a mixed-methods research design, combining quantitative analysis of governance data from eight MENA countries (UAE, Saudi Arabia, Qatar, Bahrain, Jordan, Egypt, Morocco and Oman) with a qualitative institutional framework assessment. The study used data from the World Bank Governance Indicators, Transparency International Corruption Perception Index and Refinitiv ESG scores for 2022–2024. It analysed 248 randomly selected companies. Findings The findings show that Ethical governance varies significantly across countries. Gulf Cooperation Council (GCC) countries have stronger frameworks, but struggle with transparency. Research limitations/implications This study shows some temporal limits. It covers data from 2022 to 2024 and focusses on eight countries. The numbers may not precisely outline informal governance procedures in MENA nations. There are also challenges with data reliability because the corruption records cover 2023–2024, while other governance indicators cover 2022–2024. Practical implications This study shows that traditional cultural values can enhance modern governance rather than hinder it. It highlights inclusive governance methods that maintain cultural authenticity while meeting international expectations, supporting sustainable economic development in the MENA region. Originality/value This study presents the first comprehensive post-2021 comparative analysis of the implementation of ethical governance across diverse MENA institutional environments. This study develops a novel framework, “Cultural-Institutional Complementarity”, that explains how Islamic ethical principles enhance the effectiveness of governance.