Muscat: Oman’s non-banking financial sector is moving towards mandatory sustainability-related financial disclosures, with the Financial Services Authority confirming that IFRS S1 and IFRS S2 standards will come into effect from January 1, 2029.
The announcement came during a specialised panel discussion hosted by the FSA under the theme Phased Implementation of IFRS Sustainability Disclosure Standards. The session was aimed at preparing market participants for the adoption of international sustainability reporting standards and improving awareness of their requirements.
The discussion reviewed the objectives, scope of application and compliance requirements of the standards. It also outlined Oman’s roadmap for phased implementation, as regulators seek to align the local market with international disclosure practices.
The FSA said it has made the phased implementation policy available on its website for feedback from the public and relevant stakeholders. The policy sets out the proposed stages of implementation and regulatory requirements, while taking into account market readiness and the need for a gradual transition towards full compliance.
The move places Oman’s non-banking financial sector on a clearer path towards international sustainability reporting at a time when investors, lenders and regulators are increasingly demanding comparable climate and sustainability-related financial information.
According to the FSA, the current phase is important for enabling entities within the scope of the standards to strengthen governance systems, data management frameworks and internal controls related to sustainability and climate disclosures.
The panel also discussed the technical requirements of IFRS S1 and IFRS S2, including the readiness of institutions to prepare and disclose reports in line with the standards. Participants examined ways to enhance institutional capabilities before the rules become mandatory.
The FSA said adopting the standards represents a strategic step towards improving the attractiveness of Oman’s investment environment by strengthening transparency in financial markets.
It added that stronger sustainability disclosures would help investors assess risks and opportunities more effectively, while supporting Oman’s transition towards net zero by 2050 and the wider goals of Oman Vision 2040.
The authority said the 2029 implementation date provides sufficient transition time for entities to prepare, build internal capacity and ensure effective adoption of international sustainability reporting standards.
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