Oman's FSA IFRS S1/S2 Mandate: The Road to 2029 (and Scope 3 by 2030) for Listed Firms and FIs

Oman now has a fixed date for sustainability reporting that carries regulatory weight. Through Decision E/7/2026, the Financial Services Authority (FSA) adopted IFRS S1 and IFRS S2 for listed public joint-stock companies and financial institutions. Full application starts with reporting periods beginning on 1 January 2029, and Scope 3 greenhouse gas (GHG) emissions follow from 1 January 2030.

Spectreco, a US-headquartered sustainability technology and advisory company, works with GCC reporters on exactly this kind of transition. This article covers what the FSA adopted, the timeline to 2030, who is in scope, why the audit angle matters, and a year-by-year readiness runway. If you need the current MSX ESG filing rules first, start with our guide to Oman MSX ESG and ISSB reporting for listed companies.

Has Oman Adopted IFRS S1 and S2?

Yes. The FSA formally adopted IFRS S1 and IFRS S2 through Decision E/7/2026, published in the Official Gazette in March 2026. The decision applies the standards to the preparation and audit of financial and sustainability reports by listed public joint-stock companies and financial institutions, with full application from 1 January 2029.

IFRS S1 sets the general requirements for disclosing sustainability-related risks and opportunities that could affect a company’s financial prospects. IFRS S2 covers climate: governance, strategy, risk management, and metrics and targets, including GHG emissions. The decision builds on Decision E/2/2025, which made IFRS the mandatory basis for preparing and auditing financial statements in Oman. The FSA has also said it will issue forms to guide companies through implementation.

Sources: Decree Blog, Trowers & Hamlins

When Is Sustainability Reporting Mandatory in Oman?

Full IFRS S1 and S2 compliance is mandatory for annual reporting periods beginning on or after 1 January 2029. For a December year-end company, that means the 2029 financial year, with the first full disclosures published in 2030. The FSA has proposed a phased transition before then, starting with the 2027 reporting cycle.

Here is how the road to 2030 has taken shape so far:

• March 2026: Decision E/7/2026 is published in the Official Gazette and comes into force.
• May 2026: The FSA puts a draft circular on phased implementation out for public feedback. It proposes a transition from the 2027 reporting cycle, links existing MSX ESG metrics to IFRS S1 disclosure areas, and plans digital filing using the IFRS Sustainability Disclosure Taxonomy and XBRL.
• June 2026: At an FSA panel in Muscat on phased implementation, the regulator confirms the 1 January 2029 start date and says it gives entities sufficient transition time.
• 2027 and 2028: Proposed transition cycles to build governance, data management and internal controls.
• 1 January 2029: Full IFRS S1 and S2 apply, including Scope 1 and Scope 2 emissions.
• 1 January 2030: Scope 3 emissions disclosures become mandatory.

Sources: Oman Observer (May 2026), Oman Observer (June 2026), Oman Observer (October 2026)

The phased policy is still a proposal, so treat the 2027 and 2028 steps as the regulator’s direction of travel rather than final rules. The 2029 and 2030 dates come from the decision itself.

Who Is in Scope of the Oman FSA Mandate?

Decision E/7/2026 covers two groups: listed public joint-stock companies (SAOGs on the Muscat Stock Exchange) and financial institutions. The FSA’s own implementation work is framed around the non-banking financial sector it supervises, such as insurers and capital market firms, alongside listed issuers.

• MSX-listed SAOGs: Every listed public joint-stock company, across industrials, utilities, telecoms, consumer and financial sectors.
• Non-banking financial institutions: Entities supervised by the FSA, which the regulator has said will move to mandatory sustainability-related financial disclosure.
• Listed banks: Banks listed on the MSX are public joint-stock companies, so they should plan on the same 2029 timeline while also tracking Central Bank of Oman climate-risk expectations. Our guide to climate risk for Omani banks covers that second layer.

Sources: Trowers & Hamlins, Consultancy-me.com

Why the Audit Angle Changes the Game

Most GCC sustainability rules so far have asked companies to publish. Oman’s decision goes further. It adopts IFRS S1 and S2 for both the preparation and the audit of financial and sustainability reports, which moves sustainability disclosure into the core regulatory reporting framework rather than leaving it as a side document.

The decision also carries teeth. Administrative penalties for non-compliance range from a warning, to suspension from practice for up to two years, to removal from the Accountants and Auditors Register. Those sanctions point squarely at the accountants and auditors who sign off on reports, which means auditors will want evidence before they put their registration on the line.

Sources: Trowers & Hamlins, Decree Blog

The FSA has not yet published the level of assurance it will require. Its draft circular frames the phased approach as time to prepare for assurance requirements before full implementation. In practice, that means audit trails, data ownership and documented methodologies need to exist well before 2029. Our explainer on ISSA 5000 and sustainability assurance readiness sets out what auditors will test.

Source: Oman Observer (May 2026)

When Must Omani Companies Report Scope 3?

Scope 3 emissions disclosures become mandatory from 1 January 2030, one year after the rest of IFRS S2. Scope 3 covers indirect emissions across the value chain, including suppliers, transportation and the use of sold products and services. The extra year reflects how hard it is to collect reliable supplier and customer emissions data.

The extra year is not slack. A first Scope 3 inventory usually takes a full cycle to scope, collect and stabilise, so FY2030 data collection should be designed during 2028 and tested on FY2029 data. Financial institutions should also note the ISSB’s December 2025 amendments to IFRS S2, which let entities limit Scope 3 Category 15 to financed emissions and add reliefs on industry classification and global warming potential values. Those amendments apply from 1 January 2027 internationally, and Omani reporters should check how the FSA’s implementation forms reflect them. We break down the detail in our article on the IFRS S2 Scope 3 and GHG reliefs.

Sources: Oman Observer (October 2026), Trowers & Hamlins, IFRS Foundation

A Readiness Runway to 2029: Five Steps

Working back from the first mandatory year gives Omani reporters roughly three reporting cycles to get ready. Here is a practical sequence.

1. Run a gap assessment now (Q4 2026 to Q1 2027). Map your current MSX ESG report against the IFRS S1 and S2 requirements. Identify gaps in governance, scenario analysis, financial-effects disclosure and emissions data.
2. Use the 2027 cycle as a dry run. Assign board-level oversight of climate risk, name data owners for every metric, and produce draft IFRS S2 disclosures internally, even if the FSA transition rules only ask for partial reporting.
3. Lock down Scope 1 and 2 with controls (2027 to 2028). Build an emissions inventory under the GHG Protocol with documented sources, emission factors and review steps that an auditor can reperform.
4. Prepare for assurance and digital filing (2028). Commission a readiness review against assurance expectations, close control gaps, and test XBRL tagging against the IFRS Sustainability Disclosure Taxonomy.
5. Report in full for FY2029 and switch on Scope 3 for FY2030. Publish complete IFRS S1 and S2 disclosures in 2030, with supplier engagement and Scope 3 data collection already running through 2029.

Companies that treat 2029 as distant usually discover the data problem too late: emissions, energy and value-chain data sit in operations, procurement and finance systems that were never built for disclosure. The Spectreco Platform centralises that data once and maps it across IFRS S1, IFRS S2 and existing MSX metrics, so the same numbers feed every report.

Frequently Asked Questions

Start Your Oman IFRS S1/S2 Readiness Now

The 2029 date gives Omani reporters a clear runway, but only about three reporting cycles to use it. Spectreco’s Compliance, Reporting and Disclosures advisory maps your current MSX filing to IFRS S1 and S2, designs the data controls auditors will test, and builds your path to Scope 3. For teams without in-house capacity, our Virtual Sustainability Office runs the reporting cycle for you.

Book an Oman IFRS S1/S2 readiness assessment with Spectreco and know your gaps before the 2027 transition cycle begins.