Green Municipal Bonds and Sustainable Urbanism in Saudi Arabian Cities: Toward a Conceptual Framework

As Saudi Arabia advances it’s Vision 2030 agenda, sustainable urban development has become a key national priority. Green municipal bonds (GMBs) have emerged as a pivotal financial instrument to support sustainable urban development worldwide. This paper explores the potential of GMBs as a financing mechanism to advance sustainable urbanism in Saudi Arabian cities. It addresses the synergy between innovative finance and urban sustainability in a unique, arid, fossil-fuel-dependent context. By adopting a multi-dimensional framework that integrates financial, governance, and sustainability perspectives, this study examines how GMBs can bridge funding gaps for low-carbon infrastructure, renewable energy projects, and resilient urban systems. Given that GMBs are a relatively new concept in the Kingdom, this study requires an exploratory and interpretive approach focused on analyzing existing knowledge, regulatory frameworks, and best international practices to assess the feasibility and implementation strategies for GMBs in the Kingdom. The findings suggest that GMBs can enhance resilience, promote green investments, and facilitate public–private partnerships essential for urban sustainability in the Saudi context. GMBs offer a transformative financing tool for Saudi sustainable urbanism, fostering climate resilience and economic growth. Key challenges, including regulatory fragmentation, limited market maturity, and stakeholder coordination, are critically evaluated. Policy recommendations emphasize institutional capacity-building, standardized green taxonomy, and public–private partnerships to align GMB issuance with sustainable urban priorities.