Muscat - The Financial Services Authority (FSA) has announced the approval of a plan to gradually implement the two International Financial Reporting Standards (IFRS) for sustainability-related disclosures in the Sultanate of Oman.

Abdullah bin Salem Al Salmi, CEO of the Financial Services Authority, explained that the two standards are among the first financial sustainability disclosure standards issued by the International Sustainability Standards Board in June 2023. He confirmed that the Authority has set a deadline for the mandatory and full implementation of the two international standards for all private sector institutions that implement the full financial reporting standards by 2029.

The Financial Services Authority's development of a comprehensive plan to implement these two standards is part of the national plan to align the non-banking financial sector with the requirements of green and sustainable financing, in addition to its mandate to regulate the practices of the accounting and auditing profession.

He stressed that this step represents an enabler for pursuing the goals of Oman Vision 2040 and the national strategy for an orderly and gradual transition to net zero, in addition to its importance in developing the legislative and regulatory structure that supports sustainability.

He said that the two standards are the primary means of disclosing financial sustainability. The first standard defines the general requirements for disclosing sustainability-related risks and opportunities, while the second standard focuses on climate-related risks and opportunities, aiming to enhance transparency and provide consistent and comparable information to investors about companies' performance in the areas of sustainability, environment, and governance.

FSA will begin consultations with key stakeholders in the coming period, including the Ministry of Commerce, Industry, and Investment Promotion, the Oman Investment Authority, the Environment Authority, and the Oman Centre for Zero Neutrality, in addition to other regulatory bodies, professional institutions, and entities to which the standards will apply in the initial stages.

FSA will work within the plan for the gradual implementation of the two standards to launch specialized awareness and capacity-building programs in the sectors it supervises, ensuring the market's readiness for the gradual transition leading to full implementation in 2029.

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