MUSCAT : The draft has been released for public consultation to gather feedback from stakeholders before the framework is formally adopted.

The initiative supports Oman’s sustainability objectives under Oman Vision 2040 and aligns with the Sultanate’s commitment to achieving carbon neutrality by 2050. Authorities said adopting internationally recognised sustainability disclosure standards is expected to improve the quality, reliability and comparability of sustainability-related financial information for investors and market participants.

Ahmed bin Ali Al Mukhaini, head of the team overseeing the implementation roadmap for aligning the non-banking financial sector with green and sustainable finance requirements at the FSA, said the regulatory framework was developed in accordance with international best practices and guidance issued by the IFRS Foundation and the International Sustainability Standards Board (ISSB).

He noted that the framework also takes into account the readiness of the local market and the principle of proportionality in implementation.

Al Mukhaini said the adoption of international sustainability disclosure standards is expected to play a key role in supporting the transition towards a more sustainable economy by strengthening sustainable finance practices, enhancing governance standards and increasing transparency across the market.

He added that sustainability has evolved beyond environmental considerations alone and is now closely linked to market integrity, investor protection, pricing efficiency and investment attractiveness.

The draft circular outlines regulatory expectations related to governance structures, internal controls, materiality assessments for sustainability-related financial information, data management, and preparedness for assurance and audit processes.

It also proposes a phased transition beginning with the 2027 reporting cycle, giving regulated entities time to strengthen reporting systems, climate disclosure capabilities, value chain engagement mechanisms, and assurance practices.

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