MUSCAT – In line with its efforts to enhance stakeholder awareness of international sustainability-related disclosure requirements, the FSA hosted a specialised panel discussion titled ‘Phased Implementation of IFRS Sustainability Disclosure Standards’. The panel discussion aimed to raise readiness for the adoption of the sustainability standards (IFRS S1) and (IFRS S2), in preparation for their mandatory implementation starting from 1 January 2029.

The discussion focused on introducing participants to the International Financial Reporting Standards for Sustainability, highlighting their objectives, scope of application, and related compliance requirements. It also reviewed the roadmap and phased implementation plan for these standards in the Sultanate of Oman, ensuring alignment of the local market with the latest international requirements and practices.

In this context, the FSA explained that it has made the phased implementation policy for sustainability-related financial standards available to the public and relevant stakeholders through its website for feedback and comments. The policy outlines the stages of implementation and regulatory requirements, taking into account market readiness and supporting a gradual transition towards full compliance with international standards, contributing to the development of an integrated framework for sustainability-related financial disclosure in the non-banking financial sector.

The forum saw extensive deliberations on the technical and specialised aspects of the standards, which require assessing the readiness of institutions within the scope of application, as well as exploring ways to enhance their technical capabilities in preparing and disclosing reports in accordance with these standards. Emphasis was also placed on the importance of the current phase in enabling relevant entities to develop governance systems, data management frameworks, and internal controls related to sustainability and climate disclosures.

The FSA affirmed that the adoption of these standards represents a strategic step towards enhancing the attractiveness of the investment environment in the Sultanate of Oman by strengthening transparency in financial markets. It also noted that improving the quality of disclosures related to sustainability risks and investment opportunities will facilitate a smooth and gradual transition towards net-zero by 2050. It further indicated that the mandatory implementation in 2029 provides sufficient transition time for entities within scope to prepare and build the necessary capabilities, ensuring effective and sustainable adoption of the international sustainability reporting standards.

It added that this direction will enhance investor confidence, both locally and internationally, and improve the quality, reliability, and comparability of sustainability-related financial information, while aligning the non-banking financial sector with green and sustainable finance requirements. This will contribute to supporting the goals of Oman Vision 2040 and the transition towards a more sustainable and competitive economy.