Oman is set to make sustainability and climate-related disclosures mandatory for all listed companies and regulated financial institutions, a significant policy shift designed to boost transparency and attract sustainable investment. The Financial Services Authority (FSA) has released a draft framework for public consultation that will phase in the globally recognized IFRS Sustainability Disclosure Standards.
Quick Facts
- Adopts IFRS S1 and S2 standards.
- Mandatory reporting begins January 1, 2029.
- Scope 3 emissions disclosure required from 2030.
A Phased Rollout for Market Readiness
The FSA’s proposed roadmap provides a clear timeline for implementation. Companies listed on the Muscat Stock Exchange and other entities supervised by the FSA will be required to apply the IFRS S1 and S2 standards for annual reporting periods starting on or after January 1, 2029.
A year later, from January 1, 2030, disclosures on Scope 3 greenhouse gas emissions—which include indirect emissions across a company’s entire value chain—will also become compulsory.
According to the FSA, this phased approach is intentional, giving companies a transition period starting from the 2027 reporting cycle. This allows them adequate time to develop robust reporting systems, strengthen internal data collection, and prepare for the new assurance requirements before full implementation.
From ESG Metrics to Investor Clarity
This initiative moves Omani corporate reporting from a voluntary, often inconsistent exercise to a formal component of financial disclosure. The goal is to provide investors with clearer, more comparable information on how climate risks and sustainability issues could impact a company’s financial health and long-term value.
Ahmed bin Ali al Mukhaini, Team Lead of the Green and Sustainable Finance Team at the FSA, emphasized that the new rules are about quality, not just quantity.
“The objective is not merely to increase the volume of disclosures, but to improve the quality and usefulness of sustainability-related information in supporting investment decisions and strengthening long-term economic resilience,” Al Mukhaini stated. He added that sustainability reporting is now directly linked to market integrity, investor protection, and investment attractiveness.
Aligning with Oman Vision 2040
The framework is a key component of Oman’s broader national strategies, including Oman Vision 2040 and its commitment to achieving net-zero emissions by 2050.
The initiative also includes a push for modernization. The draft circular outlines plans for digital sustainability reporting using the IFRS Sustainability Disclosure Taxonomy and XBRL-based electronic filing. Furthermore, it provides a clear bridge for companies by linking the Muscat Stock Exchange’s existing ESG metrics with the new IFRS S1 disclosure requirements, smoothing the transition for listed firms.
About The Financial Services Authority
The Financial Services Authority (FSA) is the primary regulator for the capital market, insurance sector, and non-banking financial institutions in the Sultanate of Oman. The authority works to ensure market integrity, protect investors, and promote financial stability and development across the sectors it oversees.
Source: Zawya
