Bahrain’s Vision 2030 positions sustainability as a foundational pillar within its national digital transformation agenda. However, incorporating sustainability considerations into Agile software development processes presents notable methodological and operational complexities. This paper introduces AGSB (Agile-Green Software-Sustainability for Bahrain), a conceptual framework designed to integrate Agile methodologies with Green Software Engineering (GSE) principles to enable environmentally sustainable software development. The framework is developed through a rigorous synthesis of peer-reviewed research, industry white papers, and national policy directives. It promotes practices such as energy-efficient algorithms, resource-aware programming, minimized computational overhead, and carbon-conscious development lifecycles. AGSB is strategically aligned with Bahrain’s digital economy and environmental sustainability objectives, ensuring contextual relevance and policy coherence. A hypothetical application within a Bahraini financial institution illustrates the framework’s potential to mitigate software-related carbon emissions while maintaining Agile adaptability and iterative delivery. Although currently conceptual, AGSB provides a significant theoretical contribution and practical insights for researchers, practitioners, and policymakers. Future work will focus on empirical validation through regional case studies and industry partnerships across the Gulf Cooperation Council (GCC).