Regulatory Alerts2026-03-17 | Decision No.E/ 7/2026Adoption of International Sustainability Disclosure Standards
The Financial Services Authority has adopted IFRS S1 and IFRS S2 as mandatory standards for the financial and sustainability reporting of listed public joint stock companies and financial institutions. Full compliance with IFRS S1 and most of IFRS S2 takes effect for reporting periods beginning on or after 1 January 2029, while Scope 3 greenhouse gas emissions disclosures under IFRS S2 are deferred until 1 January 2030. The regulator will issue supporting guidelines and templates, enforce compliance through warnings, suspensions, or professional removal, and provide ongoing technical direction to ensure consistent application.
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