Adoption of International Sustainability Disclosure Standards

Decision
Decision No.E/ 7/2026
On the Adoption of the International Sustainability Disclosure Standards Pursuant to the Law Regulating the Accountancy and Auditing Profession promulgated by Royal ;Decree No. 77/86 and Royal Decree No. 20/2024 establishing the Financial Services Authority and issuing its ;Statute ,and in the public interest :It is hereby decided as follows
Article One
The International Sustainability Disclosure Standards, namely IFRS S1 and IFRS S2, are adopted for the preparation and assurance of financial reports or sustainability reports of listed public joint stock companies and financial institutions
Article Two
Entities and practitioners of the accountancy and auditing profession shall apply the Standards :referred to in Article (1) in accordance with the following implementation schedule a) IFRS S1: Full application of all requirements of IFRS S1 shall be effective for reporting periods) .beginning on or after 1 January 2029 b) IFRS S2: Full application of all requirements of IFRS S2 shall be effective for reporting periods) :beginning on or after 1 January 2029, with the exception of Scope 3 greenhouse gas emissions disclosures, which shall be effective for reporting periods .beginning on or after 1 January 2030
Article Three
:The Financial Services Authority shall
Issue such guidelines, templates, and implementation tools as may be necessary to facilitate ;the application of the Standards

Coordinate with relevant stakeholders to ensure effective and consistent implementation; and Provide such further clarification or technical direction as may be required from time to .time
Article Four
In the event of a breach of the provisions of this Decision, any of the following administrative :sanctions may be imposed .Warning .1 Suspension from practising the accountancy and auditing profession for a period not .2 .exceeding two years .Removal from the register of accountants and auditors .3
Article Five
This Decision shall be published in the Official Gazette and shall come into force on the day .following the date of its publication Issued on: 27 Ramadan 1447 AH Corresponding to: 17 March 2026 Executive President Financial Services Authority