A growing body of research has investigated the conceptual foundations and operational dynamics of Sustainable Business Models (SBMs) within the specific context of the Middle East, highlighting their role in aligning with national visions and addressing regional challenges such as resource scarcity and economic diversification. Collectively, these studies affirm that SBMs in this region must integrate core value dimensions, value proposition, creation, delivery, and capture, with sustainability objectives, while being acutely sensitive to contextual factors like economic conditions, cultural values, and regulatory frameworks.

In the Gulf Cooperation Council (GCC) countries, research has emphasized the importance of innovation and strategic management in driving SBM performance. For instance, Bashir et al. (2022), focusing on Saudi Arabia, developed and validated a measurement scale for Sustainable Business Model Innovation (SBMI), conceptualizing it as a three-dimensional construct. Their study demonstrates that SBMI enhances SME performance and competitive advantage through dynamic capabilities, enabling firms to adapt to market changes while embedding sustainability into their core processes. Similarly, Al-Baghdadi et al. (2021) in the UAE contend that business model innovation (BMI) alone is insufficient; it must be supported by sustainable innovation orientation (SIO) and robust management accounting control systems (MACS) to mediate and enhance corporate performance across financial, environmental, and social outcomes.

Complementing this organizational perspective, other studies have explored the critical enablers and barriers to SBM implementation. Morshed (2025), investigating emerging markets like Jordan, identifies economic constraints (e.g., resource scarcity, limited financing), cultural influences, and varying levels of sustainability awareness as pivotal factors. This underscores the need for SBMs to balance profitability with ethical considerations and stakeholder engagement. The role of national policy is also prominent. Sobczyk (2015) illustrates how in the UAE, SBMs are closely tied to national sustainability agendas, with initiatives like Masdar City exemplifying the operationalization of sustainability through renewable energy adoption and eco-friendly urban planning.

From a technological and circular economy standpoint, recent research highlights digitalization as a key driver. Yusuf and Lytras (2023) stress the integration of digital technologies (e.g., IoT, AI, big data) to optimize resource use and facilitate the transition to a circular carbon economy (CCE) through the 4R framework (Reduce, Recycle, Reuse, Remove). This is echoed by Jrad (2024), who, through the case of Saudi Aramco, demonstrates that Industry 4.0 technologies are pivotal for minimizing environmental impact (e.g., reducing flaring) while boosting business performance, albeit contingent on strong leadership and R&D investment. Concurrently, Al-Housani et al. (2023) focus on Qatar, identifying entrepreneurship and SME development as vital for diversification, and proposing tailored frameworks involving digital platforms and special free zones to overcome barriers like regulatory complexity and limited financing.

Furthermore, studies have begun to synthesize these elements into comprehensive frameworks for specific sectors. Alshahrani (2020), for example, developed a holistic SBM framework for the Saudi housing construction industry, positioning Sustainable Value Propositions (SVP) and stakeholder-centric elements as foundational, and identifying critical transition challenges such as value chain upgrades and the need for public-sector collaboration.

However, the literature reveals consistent gaps. While existing frameworks in the region often focus on macro-economic drivers and sector-specific initiatives, there is limited emphasis on the full integration of digital transformation, data-driven performance management, and circular economy principles into core business strategies. There remains a pressing need for more holistic models that combine technological innovation, supportive entrepreneurial ecosystems, and measurable sustainability outcomes to help organizations transition effectively.

The research on Middle Eastern SBMs, shown in Table 1, reveals a multifaceted landscape. While existing SBM studies in the Middle East effectively address the interplay between strategy, national context, and the transformative potential of technology, they often treat these aspects in isolation. 

Table 1. An overview of SBM research in the Middle East