Entrepreneurial Ecosystems in GCC and North Africa: ESG Digital Nexus Abstract

Authors

  • Samantha Raed College of Economics and Management, Al Qasimia University, Sharjah, UAE Author

DOI:

https://doi.org/10.55578/jedip.2607.010

Keywords:

Entrepreneurial ecosystems, ESG–Digital Nexus, Digital transformation, Institutional quality, Resource-based view (RBV), Entrepreneurial orientation, Foreign direct investment (FDI)

Abstract

This study investigates how institutional structures, resource capacities, entrepreneurial orientation, digital transformation readiness, and Environmental, Social, and Governance (ESG) integration shape the development of entrepreneurial ecosystems in North Africa and the Gulf Cooperation Council (GCC) countries. It applies the ESG–Digital Nexus perspective to explain differences in ecosystem maturity, innovation capacity, and sustainability-driven entrepreneurship across regions. A qualitative descriptive comparative design was used, relying on secondary data from peer-reviewed journal articles, policy reports, and institutional publications published between 2018 and 2025. The analysis covers Egypt, Morocco, Tunisia, and Algeria in North Africa, and compares them with Saudi Arabia, the United Arab Emirates, Qatar, and Oman in the GCC. Thematic comparative analysis was conducted using an integrated framework that combines Institutional Theory, the Resource-Based View (RBV), and the Entrepreneurial Orientation Model (EOM). The findings show clear disparities between the two regions, with GCC countries demonstrating stronger institutional quality, more advanced digital infrastructure, greater access to entrepreneurial finance, higher ESG integration, and more innovation-oriented entrepreneurial cultures. In contrast, North African ecosystems face challenges such as institutional fragmentation, limited financing options, uneven digital readiness, and weaker ESG institutionalization. Overall, the results suggest that entrepreneurial ecosystem performance is driven by the interaction of governance quality, resource availability, entrepreneurial behavior, digital transformation capacity, and sustainability-oriented policies rather than economic resources alone. However, the study is limited by its reliance on secondary qualitative data, which restricts firm-level insights and real-time assessment, and by differences in data availability and reporting standards across countries that may affect comparability. The findings imply that policymakers should focus on strengthening institutional quality, expanding access to entrepreneurial finance, accelerating digital infrastructure development, and embedding ESG principles into entrepreneurship support systems to improve ecosystem competitiveness and sustainability. This study contributes to the literature by integrating Institutional Theory, RBV, and EOM within the ESG–Digital Nexus framework and applying it to a cross-regional comparison of entrepreneurial ecosystems in North Africa and the GCC.

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2026-07-24

Data Availability Statement

Data availability is not applicable to this article as no new data were created or analyzed in this study. All supporting information is drawn from published sources cited in the reference list.

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Entrepreneurial Ecosystems in GCC and North Africa: ESG Digital Nexus Abstract. (2026). Journal of Economic Development, Innovation and Policy, 2(2), 163-182. https://doi.org/10.55578/jedip.2607.010