Oman to Fully Adopt IFRS Sustainability Standards by 2029

Oman’s Financial Services Authority (FSA) has announced that all private sector institutions applying the IFRS accounting framework must fully adopt the IFRS sustainability disclosure standards (IFRS S1 and S2) by 2029. The phased rollout aims to strengthen transparency, enhance sustainability practices, and align Oman’s financial sector with global reporting standards.

Issued by the International Sustainability Standards Board (ISSB) in 2023, IFRS S1 covers general sustainability disclosures, while IFRS S2 focuses on climate-related risks and opportunities. Together, they provide consistent, comparable ESG reporting to help investors assess companies’ environmental and social performance.

The FSA will collaborate with key entities, including the Oman Investment Authority, Environment Authority, and Oman Net Zero Centre, to ensure effective implementation. It also plans to launch awareness and capacity-building programs to prepare the market for compliance.

This initiative supports Oman Vision 2040 and the country’s net-zero transition strategy, reinforcing Oman’s commitment to sustainable finance and responsible corporate governance in line with international standards.

Oman's move to mandate IFRS S1 and S2 adoption by 2029 puts the country among the more assertive Middle Eastern jurisdictions on sustainability disclosure convergence. Full private-sector adoption of ISSB standards - combined with the coordinating role of the FSA, Oman Investment Authority, Environment Authority and Oman Net Zero Centre - creates the regulatory architecture for consistent, comparable ESG reporting across the country's corporate landscape.

The 2029 timeline provides a realistic runway for capacity-building, particularly for entities that have historically reported under lighter sustainability disclosure requirements. The FSA's stated intent to launch awareness and capacity-building programmes is important: successful implementation depends as much on assurance-ready internal processes and data systems as on the disclosure standards themselves.

For companies operating in Oman and across the wider Gulf, Cognitud's ESG strategy and transformation, responsible investment and impact assessment teams help clients build ISSB-ready disclosure capability, structure double-materiality assessments aligned with ESRS methodology where cross-border applicability exists, and prepare the internal governance, data and assurance arrangements that give investors and lenders confidence in the disclosures once mandatory reporting begins.