FSA Approves Gradual IFRS Implementation: Key Impacts for Investors and Businesses in Oman
Muscat – The Financial Services Authority (FSA) has approved a phased plan to implement two International Financial Reporting Standards (IFRS) focused on sustainability-related disclosures in Oman.
Abdullah bin Salem Al Salmi, CEO of the FSA, highlighted that these standards are among the first issued by the International Sustainability Standards Board in June 2023. He confirmed that full mandatory compliance with the two standards will be required for all private sector entities adhering to full financial reporting standards by 2029.
The FSA’s comprehensive implementation strategy aligns with the national agenda to integrate the non-banking financial sector with green and sustainable financing priorities. It also supports the Authority’s regulatory role over accounting and auditing practices.
Al Salmi emphasized that this initiative is crucial for advancing Oman Vision 2040 and the national strategy to achieve a structured transition to net zero emissions. It also strengthens the legislative and regulatory framework underpinning sustainability efforts.
The two standards serve as primary tools for financial sustainability disclosure: the first outlines general requirements for reporting sustainability-related risks and opportunities, while the second addresses climate-related risks and opportunities. Together, they aim to improve transparency and deliver consistent, comparable information to investors on sustainability, environmental, and governance performance.
In the coming months, the FSA will engage in consultations with key stakeholders including the Ministry of Commerce, Industry, and Investment Promotion; the Oman Investment Authority; the Environment Authority; the Oman Centre for Zero Neutrality; and other regulatory bodies and professional institutions affected during the initial implementation phase.
To support market readiness, the FSA will also launch targeted awareness and capacity-building programs within the sectors it oversees, facilitating a smooth transition towards full compliance by 2029.
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The phased implementation of IFRS sustainability disclosure standards by 2029 signals a transformative shift for Oman’s private sector, aligning businesses with global sustainability and net-zero transition goals under Oman Vision 2040. This creates significant opportunities for investors and entrepreneurs to lead in green financing and sustainable ventures, while also highlighting the need for proactive compliance and capacity-building to mitigate regulatory risks. Smart stakeholders should now prioritize strengthening ESG frameworks and engaging with evolving regulatory landscapes to secure competitive advantage in a rapidly greening economy.
