Oman Firms Face 2029 Deadline for Climate Disclosure Compliance

Oman is strengthening its corporate sustainability reporting framework, with listed companies and financial institutions required to comply with internationally recognised climate and sustainability disclosure standards from January 2029.

The Financial Services Authority (FSA) has introduced new reporting requirements aimed at improving corporate transparency, strengthening climate-related risk management and aligning Oman's financial markets with international sustainability standards.

Under Decision E/7/2026, issued in March 2026, the FSA formally adopted IFRS S1 and IFRS S2, developed by the International Sustainability Standards Board (ISSB).

The standards establish a framework for businesses to disclose sustainability-related financial risks, opportunities and climate impacts, enabling investors and stakeholders to make more informed decisions.

While the requirements become mandatory for annual reporting periods beginning on or after 1 January 2029, the first annual reports covering the 2029 financial year are expected to be published in 2030.

Strengthening Corporate Climate Accountability

The introduction of IFRS S1 and IFRS S2 marks an important development in Oman's approach to environmental, social and governance (ESG) reporting.

IFRS S1 focuses on sustainability-related risks and opportunities that could materially influence a company's financial prospects. It requires businesses to assess how sustainability considerations affect corporate governance, business strategy, risk management and financial performance.

IFRS S2 specifically addresses climate-related financial disclosures, including greenhouse gas emissions, climate risks, transition planning and the potential financial implications of climate change.

A further regulatory milestone is scheduled for 1 January 2030, when Scope 3 greenhouse gas emissions disclosures become mandatory for affected entities.

Scope 3 emissions include indirect emissions generated across a company's value chain, such as those associated with suppliers, logistics, transportation and the use of products and services.

For businesses operating across energy, manufacturing, logistics and other resource-intensive sectors, these requirements could create greater emphasis on emissions monitoring, supply-chain transparency and measurable sustainability performance.

Preparing Businesses for the Transition

Meeting the new standards will require companies to strengthen their sustainability data collection, emissions accounting, internal reporting systems and governance structures.

The FSA has also proposed a phased implementation framework, potentially beginning with the 2027 reporting cycle, allowing affected businesses to progressively align their existing reporting practices with international requirements.

This proposed transition includes mapping ESG reporting metrics currently used by the Muscat Stock Exchange against the newly adopted disclosure standards.

For Omani companies, early preparation will be critical to identifying reporting gaps, improving data accuracy and developing the internal capabilities needed for compliance.

Supporting Oman's Sustainable Economic Development

Beyond regulatory compliance, the adoption of international sustainability disclosure standards could strengthen Oman's investment environment by improving the availability and comparability of corporate climate-related financial information.

Greater transparency can help investors evaluate sustainability risks, assess long-term business resilience and identify companies demonstrating credible environmental performance.

The initiative also complements Oman's wider sustainability ambitions, including its commitment to achieving net-zero emissions by 2050 and advancing sustainable economic development under Oman Vision 2040.

As sustainability reporting becomes increasingly integrated into financial decision-making, businesses will need to demonstrate not only their environmental commitments but also the systems, data and governance mechanisms supporting them.

The 2029 deadline represents an important shift in Oman's corporate sustainability landscape, moving climate disclosure towards a more standardised, measurable and financially relevant framework. For businesses, the coming years will be an opportunity to strengthen accountability, build investor confidence and prepare for a more transparent and sustainability-focused economy.

Source: Oman Observer, 13 October 2026 — Oman Firms Face 2029 Deadline for Climate Disclosure Compliance, by Conrad Prabhu.