Oman sets timeline for sustainability disclosure standards in non-banking financial sector
Oman’s Financial Services Authority (FSA) has confirmed that IFRS S1 and IFRS S2, the international sustainability disclosure standards issued by the International Sustainability Standards Board (ISSB), will become mandatory for the Sultanate’s non-banking financial sector from 1 January 2029.
The announcement was made during a specialized panel discussion on the theme ‘Phased Implementation of IFRS Sustainability Disclosure Standards,’ which brought together market participants, regulators, and financial sector stakeholders to prepare for the transition to globally aligned sustainability reporting.
The roadmap of the Financial Services Authority (FSA) is designed to balance market readiness with the imperative of firm and progressive compliance, giving entities sufficient time to strengthen governance structures, data management frameworks, and internal controls related to sustainability and climate-related disclosures.
Additionally, mandatory Scope 3 greenhouse gas emissions disclosures, covering indirect emissions across supply chains, will take effect for reporting periods beginning 1 January 2030, adding a layer of accountability across the wider value chain.
According to Anu Chaudhary, Partner and Global Head of Sustainability & Climate Consulting at Uniqus, the 2029 deadline positions Oman’s capital markets in alignment with global sustainability reporting best practices at a time when institutional investors and lenders are placing increasing weight on comparable ESG data.
Comparable data for investments
“The FSA is building a transparency infrastructure that aligns with the ISSB’s global IFRS S1 and S2 standards to ensure investors receive comparable, decision-useful sustainability data. By strengthening transparency in financial markets, Oman aims to improve investor confidence and enhance the long-term attractiveness of its investment environment to sustainability-conscious capital flows.”
Chaudhary added that the country’s commitment to mandatory IFRS S1 and S2 disclosures by 2029 signals that sustainability is no longer aspirational language for the financial services sector – it is being encoded into binding legal, financial, and operational frameworks. “The message is unambiguous: environmental and sustainability accountability is now a non-negotiable condition of doing business in the financial services sector.”
For financial institutions operating in Oman, the implications are immediate. The mandatory sustainability reporting standards and active enforcement mean that ESG governance is a core operational and strategic requirement.
In the coming period, institutions will need to conduct readiness assessments, close capability gaps, and develop reliable sustainability information before the standards become binding. “The window for voluntary, self-paced readiness is closing. Non-banking financial institutions must urgently invest in disclosure infrastructure,” said Chaudhary.
Oman Vision 2040
The FSA has framed the adoption of IFRS S1 and IFRS S2 as a key strategic enabler of Oman’s ambition to achieve net zero by 2050 and the broader economic diversification objectives of Oman Vision 2040.
