FSA Orders Omantel to Restate 2024 Audited Accounts: Key Implications for Investors and Business Stakeholders in Oman
MUSCAT: Oman’s Financial Services Authority (FSA) has directed Omantel to re-prepare and reissue its audited financial statements for the year ending December 2024 due to non-compliance with International Financial Reporting Standards (IFRS).
In Administrative Decision No. 25/2025, issued under Article 58(c) of the Securities Law (Royal Decree 46/2022), the FSA cited Omantel’s violation of Article 282(b) of the Executive Regulations of the Capital Market Law, which mandates strict adherence to IFRS. The specific issues concern IAS 29, related to reporting in hyperinflationary economies, and IAS 21, which addresses the effects of changes in foreign exchange rates.
Omantel is required to submit the revised audited financial statements within two months of the decision. The company’s appeal against this directive was dismissed by the Grievances Committee on 28 September 2025, rendering the order final and binding.
In a statement to the Muscat Stock Exchange, Omantel clarified that the adjustments aim to eliminate two qualifications in its 2024 consolidated accounts. The first qualification involved the use of the US dollar rather than the Iraqi dinar for transactions linked to Zain Group subsidiaries operating in Iraq, relating to IAS 21. The second pertains to IAS 29 for Zain Group subsidiaries in Sudan, classified as a hyperinflationary economy.
Omantel attributed these qualifications to a difference in opinion between its former group auditor and the auditors of Zain Group, with the latter not qualifying Zain’s consolidated financial statements. The company confirmed that these qualifications were already removed in its financial review for the first half of 2025.
The FSA stated that its decision underscores its commitment to enhancing compliance, transparency, and disclosure standards among listed companies, thereby protecting investors and maintaining confidence in Oman’s capital market.
Special Analysis by Omanet | Navigate Oman’s Market
The FSA’s directive for Omantel to revise and republish its 2024 audited financials underscores Oman’s stringent regulatory environment and commitment to IFRS compliance, signaling increased scrutiny for listed companies. This creates both risks for businesses with multinational operations—especially in volatile markets—and opportunities for investors seeking transparency and regulatory clarity. Smart investors and entrepreneurs should prioritize rigorous financial governance and monitor currency and inflation risks in regional subsidiaries to safeguard their interests.
