Forest conservation in semi-arid habitats is critical for mitigating climate change as it safeguards biodiversity while enhancing carbon sequestration. Understanding how forest conservation improves carbon sequestration capacity is vital for developing evidence-based policies, refining carbon credit mechanisms, and integrating ecosystem services with socioeconomic sustainability. This study quantified the structural characteristics, carbon stocks, and carbon credit potential of Juniperus procera-dominated tree communities along an altitudinal gradient in the Jurf Raydah Reserve, southwest Saudi Arabia. Field data from 14 sample plots across low, middle, and high-altitude zones were used to estimate above- and below-ground biomass using regionally adapted allometric equations. Carbon stock was calculated in accordance with Intergovernmental Panel on Climate Change (IPCC) guidelines. Total biomass increased significantly with altitude, from 95.7 Mg ha(-)& sup1; at low altitude to 277.6 Mg ha(-)& sup1; at high altitude, corresponding to carbon stocks of 47.9 and 138.8 Mg C ha(-)& sup1; , respectively. CO2-equivalent storage ranged from 176 to 509 Mg CO(2)e ha(-)& sup1; , while potential carbon credit values increased from US$6146 ha(-)& sup1; at low altitude to US$17,828 ha(-)& sup1; at high altitude. Stand density and basal area were strongly associated with CO2-equivalent storage. Juniperus procera contributed disproportionately to carbon storage at higher elevations. These findings demonstrate that integrating carbon accounting into conservation initiatives aligns ecological benefits with climate finance opportunities, positioning arid woodlands as significant contributors to climate change mitigation and sustainable development.