Oman is moving to make sustainability and climate-related disclosures mandatory for companies listed on the Muscat Stock Exchange and other entities supervised by the Financial Services Authority (FSA), under a phased framework now open for public consultation (per Oman Observer and Omanet).
The regulatory step
The FSA has issued a draft circular seeking public feedback on the adoption of the IFRS Sustainability Disclosure Standards - specifically IFRS S1 (general sustainability-related financial disclosures) and IFRS S2 (climate-related disclosures), both issued by the International Sustainability Standards Board (ISSB) under the IFRS Foundation (per the Trowers and Hamlins legal briefing). The standards were formally adopted through FSA Decision No. (E/7/2026).
Phased implementation timeline
The draft framework spreads obligations over several years to give companies time to build reporting capacity (per Oman Observer):
- Companies listed on the Muscat Stock Exchange and other FSA-supervised entities would be required to apply IFRS S1 and S2 for annual reporting periods beginning on or after January 1, 2029.- Disclosures on Scope 3 greenhouse gas emissions - which cover indirect emissions across supply chains and wider value chains - would become mandatory from reporting periods beginning on or after January 1, 2030.- The transition is expected to begin from the 2027 reporting cycle, with companies encouraged to assess gaps, improve governance structures and prepare sustainability information that is reliable, comparable and useful for investors.
Digital reporting
The draft circular also covers digital sustainability reporting through the IFRS Sustainability Disclosure Taxonomy and XBRL-based electronic filing, part of wider efforts to modernise market disclosures in Oman (per Omanet and Trowers and Hamlins). The intent is that sustainability data should be machine-readable for investors and regulators, not only published as static reports.
Regional context
Oman's adoption brings the Sultanate in line with a broader push across the Gulf to align with ISSB standards. The UAE, Saudi Arabia and several other Middle East jurisdictions have been moving towards mandatory ISSB-aligned disclosures, with Anthesis noting that Oman's phased approach mirrors the route taken by other early adopters (per Anthesis Group). Local commentators argue that mandatory sustainability disclosure is increasingly seen as a competitiveness issue for Omani firms seeking foreign investment, not only an environmental one (per Oman Observer's opinion coverage).
What companies should do now
The phased approach gives firms a window to build reporting systems, strengthen internal controls over sustainability data, train governance teams and prepare for the assurance requirements that will accompany full implementation. Companies that already report voluntarily under GRI or similar frameworks will likely face a smaller gap when IFRS S1 and S2 become mandatory.
