MUSCAT: His Excellency Abdullah bin Salem Al Salmi, CEO of the Financial Services Authority (FSA), confirmed that new sustainability standards issued by the International Sustainability Standards Board in June 2023 will become mandatory for all private sector institutions applying full financial reporting standards by 2029. This milestone reflects a significant step in aligning Oman’s financial sector with global best practices in sustainability disclosures and green finance. By setting a clear timeline for implementation, the FSA is ensuring that institutions have ample time to prepare for compliance while reinforcing the country’s broader environmental and economic goals.
Al Salmi emphasized that these two standards are among the first financial sustainability disclosure standards issued globally, marking Oman’s early adoption of internationally recognized frameworks. This proactive move demonstrates the Sultanate’s commitment to transparency, accountability, and the integration of sustainability into its financial systems. By introducing these requirements, the FSA aims to enhance investor confidence and attract international capital, which increasingly favors markets with robust environmental, social, and governance (ESG) reporting practices.
The FSA’s roadmap includes consultations with key stakeholders such as the Ministry of Commerce, Industry and Investment Promotion, the Oman Investment Authority, the Environment Authority, and the Oman Centre for Zero Neutrality. Professional bodies and regulatory institutions will also be engaged in the initial stages to ensure a smooth transition. This inclusive approach underscores the Authority’s recognition that successful implementation depends on collective effort and alignment across government, regulators, and the private sector.
As part of the plan, the FSA will launch awareness campaigns and capacity-building programs to prepare the market for full compliance by 2029. These initiatives will support companies in developing the skills and systems required to meet the new standards, strengthening the legislative framework governing accounting and auditing practices. Al Salmi noted that this initiative is not only about compliance but also about enabling Oman Vision 2040, supporting the national strategy for a gradual transition to net zero, and reinforcing the competitiveness of the country’s non-banking financial markets on the global stage.
