Oman bolsters governance amid global failures

Robust guidelines are vital to monitor performance and achieve success in any system. Corporate governance codes provide the framework for how organisations are directed, monitored and controlled. They set objectives, safeguard stakeholder interests, and build long-term value. Yet their effectiveness depends on how regulators enforce them and how seriously society views corporate conduct.
A recent GlobalData ESG-Governance Factors report highlighted repeated failures that have eroded consumer trust in global corporations. Cases of tax avoidance, inflated executive pay, lobbying and corruption have tarnished reputations and weakened public confidence. The report stressed that governance codes must strengthen decision-making, ensure compliance with law, and uphold moral obligations toward external stakeholders.
PwC’s 2024 survey reinforced these concerns, ranking corporate fraud among the top three most disruptive economic crimes after cybercrime and corruption. Despite rising scandals, company references to governance in reports peaked in 2021 and have since declined, suggesting waning corporate attention to governance at a time of growing need.
Internationally, governance codes issued by the G20/OECD and ICGN have shaped standards, while countries such as the UK, South Africa and Singapore have set benchmarks adopted worldwide. Governance reporting today is a key tool to enhance accountability and prevent fraud.
Oman has kept pace with global standards. The Commercial Companies Law (CCL), issued under Ministerial Decision 146/2021, anchors the country’s corporate governance regime, overseen by the Capital Market Authority (CMA) and the Ministry of Commerce, Industry and Investment Promotion (MoCIIP). For public joint stock companies (SAOGs), updated governance codes were introduced in 2016, covering board responsibilities, internal controls, CSR, auditing and reporting obligations.
The framework has steadily expanded. In 2020, CMA issued draft principles for state-owned enterprises under Royal Decree 18/2019, covering pension funds, state-owned SAOCs and LLCs. In January 2025, MoCIIP introduced governance codes for Closed Joint Stock Companies (SAOCs) under Ministerial Decision 5/2025. These cover nine key areas, including board formation, shareholder rights, CSR, audit and risk committees, and executive management oversight. Together, these updates place Oman’s codes on par with international best practice.
The Global Risks Report 2025 by the World Economic Forum warns of a fragmented global business environment shaped by geopolitical, environmental and technological disruptions. In such a climate, transparent and well-regulated business practices are critical to maintaining public trust. Oman’s evolving governance codes reflect precisely that effort, underscoring the country’s determination to foster resilience, accountability and sustainable growth even as global corporations face increasing scrutiny.

The writer is Asst Prof of Business Management,College of Banking and Financial Studies