The environment and economic growth are linked, with the health and sustainability of the environment playing a vital role in driving economic prosperity. A well-preserved environment provides essential natural resources, such as clean air, water, and fertile land, crucial for various economic activities, including agriculture, manufacturing, and tourism. This research paper aims to fill a significant research gap by examining the impact of environmental factors in achieving Sustainable Development Goals (SDGs) and policies and their impact on economic growth in Arab countries. It investigates whether the environmental aspect directly affects these countries' economic growth and identifies the environmental challenges and opportunities specific to the region. A regression model is implemented, utilizing GDP constant values as a proxy for economic growth and CO2 emissions as the primary independent variable representing the environmental aspect. The model also incorporates other independent variables reflecting sustainable development policies, encompassing the social dimension, including political stability, employability, and economic dimension, which reflect the industry and foreign direct investment. The study utilizes time series data from 2003 to 2021 and panel data from 16 Arab countries to provide a comprehensive analysis. The paper also reflects some insights related to the Arab SDG index to evaluate the effectiveness of sustainable development policies.