Purpose This study aims to examine how institutional, financial and cultural factors shape sustainable entrepreneurial ecosystems in North Africa and the Gulf Cooperation Council (GCC), emphasizing their role in advancing the water–energy–food–environment (WEFE) nexus. It investigates how entrepreneurship drives sustainability transitions, resource efficiency and climate resilience in arid and resource-constrained contexts. Design/methodology/approach A comparative qualitative framework is employed, integrating institutional theory, the resource-based view and the entrepreneurial orientation model to analyze the interaction of governance quality, access to sustainable finance and entrepreneurial behavior in promoting WEFE-oriented innovation. The analysis draws on peer-reviewed literature, government strategies and institutional reports published between 2018 and 2024. Findings Results indicate that the GCC benefits from coherent institutions, advanced financial systems and policy-driven innovation supporting renewable energy, water management and circular economy ventures. North African ecosystems remain constrained by fragmented governance and limited green finance, resulting in predominantly necessity-driven entrepreneurship. While both regions increasingly align entrepreneurship with sustainability objectives, WEFE integration is more advanced in the GCC. Practical implications The study highlights the need for institutional reforms, expanded green finance, and entrepreneurship education incorporating WEFE principles. Sustaining progress in the GCC requires deeper private-sector engagement, robust impact assessment of environmental innovation and enhanced cross-regional collaboration to transfer knowledge and best practices. Originality/value This research links entrepreneurial ecosystem development to the WEFE nexus in arid regions, offering a comparative framework illustrating how institutional stability, financial inclusion and innovation-oriented mindsets foster low-carbon, resource-efficient growth aligned with sustainable development goals 6, 7, 8, 9, 12 and 13.
Raed Awashreh (2026) studied this question.