# ESG Disclosure Rules in the GCC, Country by Country

> What each GCC state requires of listed companies and banks on ESG reporting, IFRS S1 and S2, assurance and climate risk, as at 18 October 2026.

**Source:** https://www.esgweise.com/insights/gcc-esg-disclosure-regulation-by-country/
**Author:** Sumit Agarwal
**Published:** 2026-10-18
**Frameworks:** IFRS S1, IFRS S2, GRI, ISSA 5000
**Countries:** UAE, KSA, Qatar, Bahrain, Oman, Kuwait

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## Key points

- Five of the six GCC states make some ESG or sustainability report mandatory for listed companies. Saudi Arabia is the exception: listed reporting there is voluntary.
- Qatar is the only GCC state with IFRS S1 and S2 in effect, from FY2026. Oman has adopted them from 1 January 2029. The UAE, Saudi Arabia, Bahrain and Kuwait have no adoption decision.
- Only one rule in force requires external assurance of sustainability information: QFMA's, for companies on the Qatar Stock Exchange Main Market.
- The GCC Exchanges Committee's 29 ESG metrics are voluntary. They bind only where a national rule copies them, as Oman's does.
- Binding central bank climate rules exist in the UAE, Oman and Qatar. Saudi Arabia's central bank has published none.

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**Does a GCC company have to publish an ESG report? In five of the six states, if it is listed, yes.** The UAE, Qatar, Bahrain, Oman and Kuwait (Premier Market) each make some sustainability report mandatory for listed companies. Saudi Arabia does not. Beyond that one question, the six states differ on almost everything that matters: which framework, whether IFRS S1 and S2 apply, whether the report must be assured, and what the central bank expects of banks.

Every rule below was checked on the issuer's own website on 18 October 2026. These rules are changing quickly: Qatar and Oman moved in the past twelve months, and the UAE's securities regulator changed its name on 1 January 2026. Check the regulator's site before relying on any of it for a filing.

## The six states at a glance

| | Listed companies | IFRS S1/S2 | Assurance required | Central bank climate rule |
|---|---|---|---|---|
| **UAE** | Sustainability report mandatory (integrated report) | Not adopted | No | Binding risk management regulation (CBUAE, 2025) |
| **Saudi Arabia** | Voluntary | Not adopted | No | None published |
| **Qatar** | IFRS S1 and S2 mandatory, Main Market | In effect from FY2026 | Yes, Main Market (QFMA) | IFRS S1/S2 reporting for banks and insurers (QCB) |
| **Bahrain** | Annual ESG report mandatory from FY2024, 31 KPIs | Not adopted | No | Guidance only |
| **Oman** | 30 MSX metrics mandatory | Adopted, applies from 2029 | No | Binding, with disclosure from FY2026 (CBO) |
| **Kuwait** | Mandatory for the Premier Market from FY2025 | Not adopted | No | 2022 directives (CBK) |

## United Arab Emirates

- **Who regulates:** the **Capital Market Authority, formerly the Securities and Commodities Authority (SCA)**, renamed on 1 January 2026 by Federal Decree-Law 32 of 2025. Existing SCA instruments keep their numbers.
- **What is required:** Article 76 of the Joint Stock Companies Governance Guide (Decision No. 3/Chairman of 2020, amended 2024) requires listed public joint stock companies to include a sustainability report in their integrated report.
- **Framework:** the rule names none. The ADX ESG Disclosure Guidance (June 2025, 35 metrics) and the DFM Guide to ESG Reporting (2025, 32 metrics) are voluntary and point to GRI and IFRS S1 and S2 as options.
- **IFRS S1 and S2:** no adoption decision, roadmap or consultation.
- **Assurance:** not required.
- **Banks:** the Central Bank of the UAE issued **Circular C 8/2025, the Climate-related Financial Risk Management Regulation**, on 14 October 2025. It is binding and governs how banks manage climate risk; it does not impose a public disclosure duty. The Sustainable Finance Working Group principles remain guidance.
- **Climate law:** Federal Decree-Law 11 of 2024 on the reduction of climate change effects has been in force since 30 May 2025. **Cabinet Resolution 147 of 2026 extended its adjustment window by one year from 31 May 2026.** Abu Dhabi runs its own facility-level GHG monitoring, reporting and verification under EAD Resolution 3 of 2026; see [Abu Dhabi facility MRV](/insights/abu-dhabi-facility-mrv-ghg-reporting/).

## Saudi Arabia

- **What is required:** nothing, for a listed company. No rule from the Capital Market Authority, the Saudi Exchange or SOCPA requires a sustainability report.
- **Guidance:** the Saudi Exchange ESG Disclosure Guidelines (October 2021) are voluntary and carry no metric list of their own. Companies may also use the voluntary GCC 29 metrics.
- **IFRS S1 and S2:** SOCPA has translated the standards into Arabic. It has not adopted them.
- **Assurance:** not required. SOCPA has approved ISSA 5000 for voluntary engagements by its members; that makes the standard available, not mandatory.
- **Banks:** the Saudi Central Bank (SAMA) has published no climate risk rule in its Rulebook.
- **Climate law:** no corporate GHG reporting regime.

## Qatar

- **What is required:** companies on the Qatar Stock Exchange **Main Market** must report under **IFRS S1 and S2** from financial year 2026, so the first reports appear in 2027. The basis is the QFMA Governance Code for Listed Companies (Board Decision 5 of 2025) and QFMA's guidance on corporate sustainability reporting.
- **Three regulators, one framework:** the Qatar Central Bank's Sustainability Reporting Framework applies IFRS S1 and S2 to all banks and insurers from FY2026, and the QFC Regulatory Authority applies them to QFC firms. All three give **two years of Scope 3 relief**, so Scope 3 reporting starts with FY2028.
- **Assurance:** QFMA requires the sustainability report of Main Market companies to be assured by the external auditor, with ISSA 5000 referenced. This is the only in-force assurance requirement in the GCC.
- **Banks:** beyond reporting, the QCB Sustainable Finance Framework (2025) binds banks. A climate risk management regulation is promised in the QCB strategy but has not been issued.
- More detail: [the QCB Sustainable Finance Framework](/insights/qatar-qcb-sustainable-finance-framework/).

## Bahrain

- **What is required:** the **ESG Module in the Common Volume of the CBB Rulebook** (November 2023) makes an annual ESG report mandatory from FY2024 for listed companies and specified classes of CBB licensees.
- **Framework:** 31 KPIs set by the Central Bank of Bahrain (10 environmental, 11 social, 10 governance), referenced to GRI, TCFD and the GHG Protocol. Each KPI is disclosed or its absence explained. The Bahrain Bourse guide, which carries the GCC 29 metrics, is voluntary.
- **IFRS S1 and S2:** not adopted.
- **Assurance:** not required. KPI G.10 asks only whether assurance was obtained.
- **Banks:** the 2021 circular and the March 2022 Guidance Note on climate risk are guidance, not binding rules.

## Oman

- **What is required:** the **Muscat Stock Exchange's 30 ESG metrics** (the GCC 29 plus one on community investment) are mandatory for listed companies, starting with their 2024 reports.
- **IFRS S1 and S2:** adopted by **Financial Services Authority Decision E/7/2026**, in force since 25 March 2026 and **applying from 1 January 2029**, with Scope 3 from 1 January 2030. The circular that will phase it in is still in draft.
- **Assurance:** not required. The decision contemplates audit but sets no standard or date.
- **Banks:** **Central Bank of Oman Circular BM 1208** (October 2024) is binding. Its governance, strategy and risk requirements apply from 1 July 2026, and banks make an annual climate disclosure in their FY2026 financial statements.
- **Climate law:** Ministerial Decision 20 of 2016 requires facilities above 2,000 tCO2e or 30 TJ to report greenhouse gas emissions annually, by 28 February.

## Kuwait

- **What is required:** a sustainability report is mandatory for **Premier Market** companies only, from FY2025, under **CMA Circular 04 of 2025** (12 February 2025; Module Twelve, Article 1-17-4). For a calendar-year company the first report was due by 30 June 2026. Main Market companies report voluntarily.
- **Framework:** "one or more" international standards, none named. The Boursa Kuwait 2026 guide is advisory.
- **IFRS S1 and S2:** not adopted. Boursa Kuwait's own guide says ISSB is not yet mandated in Kuwait.
- **Assurance:** optional.
- **Banks:** Central Bank of Kuwait Circular 2/BS,IBS/500/2022 (16 November 2022) issued directives that include climate risk in ICAAP and an annual sustainability report.

## Across the GCC

**There is no GCC-wide mandatory standard.** The GCC Exchanges Committee agreed 29 unified ESG metrics in December 2022 and released them in January 2023. They are voluntary and do not replace each exchange's own guide. They bind only where a national rule copies them, as Oman's does.

**IFRS S1 and S2 are in effect in one state, adopted in a second, and absent in four.** The IFRS Foundation's September 2026 list of effective dates includes Qatar, places Oman in "2028 or later", and omits the other four.

**Assurance is required by one rule.** Companies elsewhere obtain it voluntarily, usually because a lender, an investor or a rating agency asks. For what an assurance engagement involves, see [ESG and GHG assurance](/services/assurance/).

**Two GCC central banks are not NGFS members:** the Qatar Central Bank and the Central Bank of Kuwait, as at the NGFS membership list of 26 August 2026.

## Six beliefs that are wrong

- **"The GCC has a unified mandatory ESG standard."** It has 29 voluntary metrics, issued by an exchanges committee that is not a regulator.
- **"There are 30 GCC metrics."** There are 29. The 30th belongs to the Muscat Stock Exchange.
- **"The UAE or Saudi Arabia has adopted ISSB."** Neither has an adoption decision. Companies in both may reference IFRS S1 and S2 voluntarily.
- **"Qatar's ISSB mandate covers only banks."** It covers Main Market listed companies, banks, insurers and QFC firms.
- **"Oman's ISSB mandate starts in 2027."** It applies from 1 January 2029.
- **"Bahrain's binding KPIs are the GCC 29."** The binding list is the CBB's 31 KPIs. The 29 sit in the voluntary Bahrain Bourse guide.

## What it means for a company

1. **Find the rule that binds you, not the guide that describes good practice.** In four states the exchange guide is voluntary while a separate regulator rule is not.
2. **If you report in Qatar, plan for IFRS S1 and S2 with assurance now.** The first reports cover FY2026.
3. **If you report in Oman, use the time to 2029.** The financed or value-chain data behind Scope 3 takes longest to build.
4. **Elsewhere, choose the framework your readers use.** Lenders, international investors and rating agencies increasingly read IFRS S2 even where no rule requires it, and building to it once avoids rebuilding later.
5. **Banks have two sets of duties:** what the securities regulator requires of a listed company, and what the central bank requires of a bank. In Oman and Qatar both now apply.

## How ESGweise helps

We prepare sustainability reports to GRI, IFRS S1 and S2 and the exchange guides, build the GHG inventory behind them, and provide independent assurance or assurance readiness. See [sustainability reporting](/services/reporting/), [IFRS S1/S2 and climate risk](/services/ifrs-s1-s2-climate-risk/) and [ESG and GHG assurance](/services/assurance/).

To check which rules apply to your company and when, [talk to us](/about/contact/).

## Primary sources

All checked on 18 October 2026.

- UAE: Joint Stock Companies Governance Guide, Decision No. 3/Chairman of 2020, Article 76, Capital Market Authority (legislation.uaecma.gov.ae).
- UAE: ADX, ESG Disclosure Guidance for Listed Companies, June 2025; DFM, Guide to ESG Reporting, 2025.
- UAE: Central Bank of the UAE, Climate-related Financial Risk Management Regulation, C 8/2025, 14 October 2025 (CBUAE Rulebook).
- UAE: Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects (uaelegislation.gov.ae); Cabinet Resolution No. 147 of 2026.
- Saudi Arabia: Saudi Exchange, ESG Disclosure Guidelines, October 2021.
- Qatar: QFMA, Governance Code for Listed Companies, Board Decision No. 5 of 2025; QFMA, Guidance on Corporate Sustainability Reporting for Companies Listed on the Main Market, November 2025.
- Qatar: Qatar Central Bank, Sustainability Reporting Framework according to ISSB Standards, 2025.
- Bahrain: Central Bank of Bahrain Rulebook, Common Volume, ESG Module, November 2023.
- Oman: Muscat Stock Exchange, ESG Disclosure Guideline; Financial Services Authority Decision E/7/2026; Central Bank of Oman Circular BM 1208, 13 October 2024.
- Kuwait: Capital Markets Authority, Circular No. 04 of 2025, 12 February 2025.
- GCC: GCC Exchanges Committee, unified ESG metrics, January 2023.
- IFRS Foundation, jurisdictional adoption of ISSB Standards, September 2026.

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## Frequently asked questions

### Is ESG reporting mandatory in the UAE?

Yes, for listed public joint stock companies. Article 76 of the Joint Stock Companies Governance Guide requires a sustainability report as part of the integrated report. The rule names no framework: the ADX and DFM ESG guides are voluntary and cite GRI and IFRS S1 and S2 as options. The UAE has not adopted IFRS S1 and S2, and assurance of the report is not required.

### Is ESG reporting mandatory in Saudi Arabia?

No. As at 18 October 2026 no Capital Market Authority, Saudi Exchange or SOCPA rule requires a listed company to publish a sustainability report. The Saudi Exchange ESG Disclosure Guidelines of October 2021 are voluntary, and SOCPA has translated IFRS S1 and S2 but not adopted them.

### Which GCC countries have adopted IFRS S1 and S2?

Qatar, in effect from financial year 2026 for Main Market listed companies (QFMA), banks and insurers (Qatar Central Bank) and QFC firms, with Scope 3 relief for two years. Oman has adopted them by FSA Decision E/7/2026, applying from 1 January 2029 and Scope 3 from 1 January 2030. The UAE, Saudi Arabia, Bahrain and Kuwait have no adoption decision, roadmap or consultation.

### Is ESG assurance required in the GCC?

Only in Qatar, for companies listed on the Main Market, under QFMA's sustainability guidance. No rule in force in the UAE, Saudi Arabia, Bahrain, Oman or Kuwait requires external assurance of sustainability information, although companies can obtain it voluntarily and lenders often ask for it.

### Are the GCC 29 ESG metrics mandatory?

No. The GCC Exchanges Committee released 29 unified ESG metrics in January 2023 as voluntary guidance that does not replace each exchange's own guide. They bind only where a national regulator or exchange has made its own list mandatory, as the Muscat Stock Exchange has with its 30 metrics.


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Published by ESGweise Global LLC, Dubai. https://www.esgweise.com