In a significant new development, the recent Administration Decision 77/2025 (AD) published on 1 June 2025 which came into force with immediate effect has made it compulsory for companies listed on the Muscat Stock Exchange (MSX) to disclose their environmental, social and governance (ESG) framework and practices.
The MSX had previously introduced its ESG disclosure guidelines for public joint stock companies in 2024. The guidelines aimed to assist all SAOG companies listed on the MSX to report on their ESG performance, which helps communicate companies' commitments to sustainable growth and related activities to its key stakeholders, investors and overall community. Public companies listed on MSX were encouraged in 2024 to voluntarily report their 2023 activities based on 30 ESG metrics. The reporting on 2024's activities was meant to be mandatory from 2025.
Details of the new requirements are set out in the Requirements for Disclosure of Environmental, Social and Governance Practice (the Requirements), which are attached to the AD. Article 3 of the Requirements provides that all public joint stock companies listed on the MSX must disclose ESG practices both through the MSX platform and on the company's own website.
Any listed public joint stock company (an SAOG) is now required to publish its ESG practices in the first quarter of the financial year – within 30 days of the end of the financial year for standalone companies and within 45 days for companies with subsidiaries. Board approval must also be obtained. The Requirements make it clear that negative information must be disclosed to the same extent as positive information, with any disclosure being accurate, realistic, and clear.
Article 7 of the Requirements sets out the penalties for non-compliance with the disclosure. The penalty is either a warning, or that the violation is referred to the Financial Services Authority who can then take the "necessary procedures", although it is not clear from the AD what these "necessary procedures" could be.
Details of the extent of disclosure required are also not yet clear. From the AD, it appears that a form will be attached detailing what must be disclosed by the relevant companies, although such a form does not appear to have been published yet.
It will be interesting to see how the Requirements are practically implemented in Oman in the years to come. Having said that, the new framework is a step in the right direction and in clear alignment with Oman's Vision 2040 for further harmonisation of sustainable practices in the Sultanate.
As a firm well-versed with the Omani market and regulatory framework, our local and international experts are well placed to guide businesses on the way forward in their ESG compliance journey. Please get in touch with our Oman team for further information.
