Two of the most environmentally critical and operationally challenging maritime environments anywhere in the world are the Red Sea and the Arabian Gulf. The shallow waters and high salinity levels, along with unprecedented sea surface temperatures and growing traffic from commercial vessels, are presenting major challenges to conventional design concepts that are highly unlikely to overcome the challenges for ship designs. In addition, there are global environmental statutes and regional sustainability agendas, especially within the Middle East, which put a greater focus on greener and more efficient maritime practices. This paper presents an examination of sustainable ship design concepts, focusing specifically on the environment of the Red Sea and the Arabian Gulf. The present paper critically reviews major dimensions of ship design, such as ship optimization, propulsion systems, energy-efficient technologies, alternative fuels, and environmentally adaptable materials, through a comprehensive review of recent developments in naval architecture with an analytical synthesis of advances made in marine engineering and sustainable technologies. Furthermore, this research also identifies the applicability of new concepts of sustainable ship design regarding international maritime legislation and regional policy, considering sustainability factors involved with regional economic and environmental growth. The research shows that fuel efficiency, emission reduction, and consequently environmental protection could be substantially achieved with regionally tailored design approaches, along with improved ships' operational performance and reliability. A conceptual framework for sustainable ship design, incorporating environmental constraints, adopting technological advancement, and adhering to regulations, has been presented in the paper.