Over the last few years, ESG (Environmental, Social and Governance) principles have become global benchmarks for responsible and predictive businesses, identifying key strategic focus areas. With Oman being one of the strategically located countries in the world, having a diversification of its economic interests and long term focus on national development seeks to have ESG principles embedded as a key element of the sustainability Omani business aims to pursue. As Oman moves towards Oman Vision 2040, the integration of ESG principles is seen not just as a responsibility, but a competitive advantage to businesses in Oman, whether in the public or private sector.

Environmentally, Oman’s commitment to sustainability is reflected in the national initiatives that have been launched aimed at the reduction of carbon and the other greenhouse gases and the mitigation of the impacts on the country’s ecosystems while promoting the use of clean energy. The country is blessed with the highest solar and wind potential in the region; and is in a better position to spearhead the development of renewable energy in the region.

The large scale solar parks in Al Dhahirah Governorate and the interest in some green hydrogen projects are a major step towards a low carbon future. Such initiatives are aligned with the interests of global investors as they not only decrease the dependence on hydrocarbons but also demonstrate commitment to environmental sustainability. Finally, Oman’s ESG expectations are only expected to continue to grow in the future considering the commitment to protecting the marine and desert ecosystems.

Oman keeps fostering human capital, community transformation and inclusive progress. The sultanate of Oman enhanced level of education and health care services and the total health workforce. The country's education, health sector and workforce nationalisation improvements government provided conditions for talent to bear. The country’s programmes on the promotion of small and medium enterprises, businesswomen and youth entrepreneurship demonstrate the country’s empowering and social resilient.

Companies adopting ESG standards acknowledge that social responsibility goes beyond philanthropy to include the wellness and equity of employees, the active participation of the community and the protection of social/cultural heritage. These social concerns ensure organisational sustainability and enhance public trust.

Oman’s progress in the corporate domain has also been significant in regard to transparency, accountability and regulatory oversight. The Financial Services Authority (FSA) has contributed to improvements in the corporate governance framework, encouraging and facilitating sustainability reporting by listed companies and adoption of reporting standards.

New governance frameworks encourage ethical and responsible risk management (and a focus on the protection of) for investors and the safe use of the organisation's complex operational environment. Increasingly, strong governance is seen to provide the necessary conditions for the social and environmental pillars to be met.

Oman's acceptance of ESG principles mirrors the global change in the acceptance of business principles and practices. Ethical, transparent practices and sustainability become more critical with each passing day and investors, customers, and regulators expect them. For most Omani businesses, the adoption of ESG practices and principles is no longer an optional endeavour, but instead, an overwhelming necessity to remain competitive in the international marketplace, attract cross-border investments and build sustainable enterprise that are adaptable to the inevitable climate, economic and social challenges of the future.

The future integration of ESG principles into the public policy formulation, corporate change management and investment frameworks will be an indispensable asset for the sustainability of Oman.

ESG will assist the Sultanate of Oman in fostering partnerships among public sector institutions, businesses and the non-profit sector to become the most sustainable, responsible and protective of their people in the region. In doing so, Oman will uphold the values of Oman Vision 2040 by protecting the culture of the people and future aligning the economy of the people to the global economy.

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