This study examines the economic performance and production efficiency of greenhouse vegetable cultivation in the Arabian Peninsula, with particular emphasis on the role of protected agriculture systems in addressing the challenges of arid climates. Using data from 150 farms across four Gulf countries—United Arab Emirates (UAE), Saudi Arabia, Kuwait, and Oman—we employ stochastic production frontier analysis to assess technical efficiency variations in greenhouse vegetable operations. Primary data were collected through structured surveys covering farm characteristics, input utilization, output metrics, and management practices during the period 2020–2022. Our results indicate a mean technical efficiency of 78.5%, with significant variations across countries and farm types. Notably, the analysis reveals that farmer education, technology adoption, and farm size are key determinants of efficiency, underscoring the importance of capacity building and investment in modern technologies. Furthermore, the findings suggest there is potential for a 21.5% output increase through improved management practices and targeted technology transfer programs. These insights provide valuable guidance for policymakers and stakeholders seeking to enhance the sustainability and competitiveness of greenhouse vegetable production in the region.