Sustainability has often been a fundamental part of the composition of both tangible and intangible cultural resources; sustainability and preservation of cultural identity are complementary. Elements of sustainable design are integral to vernacular architecture that have evolved over time using local materials and technology emerging from ambient natural and cultural environment creating optimum relationships between people and their place. This chapter aims to redefine what identity is as a concept and the impact of globalization on contemporary architecture especially on regions with rich heritage and unique culture as the Arab World. To accomplish this, the chapter examines the emergence of “local identity” as a reaction to the globalization of cultural values, uniform architectural styles, and stereotype patterns through discussing sustainability as a motivation for identity in culture and architecture. The research methodology is based on conducting a qualitative analysis of literature review to the main concepts discussed in this chapter such as: identity, culture, vernacular architecture, and sustainability. Through comparative analysis, the chapter investigates sustainability potential of vernacular architecture in the region to derive core concepts as guidelines of reproducing the characteristics of society and reveal identity of contemporary architecture in the Arab World.