Financial Technology and Sustainable Development in Saudi Arabia and the GCC: Empirical Evidence and Policy Implications

This paper examines the relationship between FinTech and sustainable development in Saudi Arabia and the Gulf Cooperation Council (GCC) using a mixed-methods approach. It combines survey data from professionals in banking, insurance, and manufacturing with policy and industry literature. Using PLS-SEM complemented by macro-level regression robustness analysis, the study analyzes how FinTech, blockchain, green finance, and financial inclusion influence sustainability. Findings show that FinTech and blockchain both significantly enhance sustainable performance, especially when combined. Green finance and financial innovation mediate and strengthen these effects. The research also highlights FinTech’s role in advancing key UN Sustainable Development Goals (SDGs), including poverty reduction (SDG 1), gender equality (SDG 5), and economic growth (SDG 8), through broader financial access. However, the study warns that without proper safeguards, financial inclusion could raise CO2 emissions due to increased fossil fuel use. It emphasizes the need for strong regulation, trust, and infrastructure, and recommends aligning digital finance with environmental goals and boosting digital and environmental literacy.