GCC ESG Regulations: Country-by-Country Compliance Guide for UAE, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain
Between 2024 and 2026, every GCC member state introduced or enforced mandatory ESG disclosure requirements. Bahrain's Central Bank moved first in 2024. Oman's Muscat Stock Exchange followed in January 2025, achieving 100% compliance in its inaugural mandatory cycle. Qatar and Kuwait have set binding deadlines for 2026.
Saudi Arabia's CMA has embedded ESG into its green debt framework. A full mandatory date remains unconfirmed, but the direction is unambiguous. ESG regulations in the Middle East now carry specific deadlines, named regulators, and financial penalties. The pace of change in ESG laws across GCC countries has caught several compliance teams mid-preparation.
This guide maps the GCC ESG regulations, compliance deadlines, and enforcement mechanisms across all six member states.
GCC ESG framework: the unified regional baseline
Unified metrics
The GCC Exchanges Committee published 29 ESG disclosure metrics in January 2023: 10 environmental, 10 social, 9 governance. Developed with the World Federation of Exchanges and the UN Sustainable Stock Exchanges Initiative, these metrics set a voluntary floor for listed companies across all six states.
ISSB as the regional standard
IFRS S1 and S2 have become the GCC's default reporting framework. Qatar, Kuwait, and Bahrain explicitly require ISSB alignment. The UAE's Securities and Commodities Authority mandates it from FY2026. Saudi Arabia's Tadawul guidelines reference ISSB as a recommended standard. Oren's sustainability reporting platform supports multi-framework compliance across these jurisdictions.
Country-level mandates
Each nation has layered binding requirements on top of this voluntary baseline. The timelines, scope of coverage, and penalties differ by jurisdiction.
GCC ESG regulations timeline: mandatory deadlines by country
Bahrain, 2024
The Central Bank of Bahrain enforced ESG reporting for listed corporations and financial institutions. Disclosures cover Scope 1, 2, and 3 emissions, aligned with GRI. Non-compliance fines reach BHD 15,000.
Oman, January 2025
Administrative Decision 77/2025 made sustainability reporting mandatory for all MSX-listed SAOGs. Companies must disclose against 30 GRI-aligned metrics within the first quarter of the financial year. The Central Bank of Oman separately mandated climate reporting and sustainability compliance for banks. MSX reported 100% disclosure compliance in its first mandatory cycle.
Saudi Arabia, 2025
Tadawul's sustainability disclosure guidelines are active. The CMA's green debt framework requires ongoing ESG disclosures for issuers from 2025. The CMA is integrating ESG into corporate governance rules for all listed companies. A full mandatory date has not been announced.
Qatar, January 2026
QCB-regulated banks and insurance firms must report under IFRS S1/S2 from January 1, 2026. The QFCRA mandates the same for large regulated firms within the Qatar Financial Centre. First reports are due mid-2026.
Kuwait, June 2026
CMA Circular 04/2025 requires Premier Market companies to publish ESG reports covering 30 KPIs from FY2025. The Boursa Kuwait ESG Disclosure Guide sets the ISSB-aligned standard. Reports are due by June 30, 2026.
UAE, May 2026
Federal Decree-Law 11 sets a compliance deadline of May 30, 2026. The CBUAE has set September 2026 as the deadline for financial institutions. The SCA's mandatory ESG requirement for listed companies is already in force, with IFRS S1/S2 alignment required from FY2026. Penalties range from AED 50,000 to AED 2 million. See Oren's deep dive on UAE's ESG transformation.
ESG compliance GCC: cross-border reporting challenges
Overlapping mandates
ESG compliance in the GCC is complicated by the fact that organisations operating in multiple states face non-identical requirements from different regulators.
- The UAE mandates Federal Decree-Law 11 compliance alongside SCA reporting.
- Saudi Arabia layers Tadawul guidelines over CMA governance rules.
- A company listed in both Abu Dhabi and Riyadh must satisfy both regimes simultaneously.
Standard fragmentation
MENA ESG regulation is converging on ISSB as a common language, but diverging on scope and enforcement.
- Bahrain and Oman anchor their requirements in GRI.
- Qatar and Kuwait have explicitly adopted IFRS S1/S2.
ESG reporting across MENA countries requires mapping disclosures to multiple standards, often with different materiality thresholds. The lack of a single GCC ESG framework means compliance teams must track each jurisdiction independently.
Data infrastructure gaps
The decarbonisation challenge across the region compounds reporting complexity. Scope 3 data collection remains the widest gap, particularly for companies with cross-border supply chains spanning the GCC.
GCC sustainability regulations: what compliance teams should prepare
Baseline data infrastructure
Every GCC mandate requires, at minimum, a GHG inventory covering Scope 1 and Scope 2 emissions. Bahrain extends this to Scope 3. Organisations without an automated GHG accounting system will struggle to meet the reporting cadence these regulations demand.
Board-level governance
The UAE, Qatar, and Kuwait all require board or senior management sign-off on sustainability disclosures. ESG governance structures need to be formalised before the first filing deadline.
Third-party assurance
Bahrain and the UAE already require or strongly encourage external assurance of ESG data. GCC sustainability regulations are moving toward mandatory assurance as a standard requirement.
Learn how Oren can help streamline multi-country ESG compliance across the GCC.
Key Takeaways
The trajectory of GCC ESG regulations points toward convergence on ISSB as the regional sustainability reporting standard. Compliance infrastructure built to IFRS S1/S2 specifications today will carry across jurisdictions as remaining countries formalise their mandates.
The window between regulatory announcement and enforcement is shrinking. Qatar, Kuwait, and the UAE have all set 2026 deadlines within months of each other. Organisations that delay preparation for individual country confirmations will run out of lead time.
Learn how Oren can help your organisation manage multi-country ESG reporting across the GCC.
Frequently Asked Questions (FAQs)
Q1. What are the mandatory ESG reporting requirements in the UAE?
The UAE requires all entities to measure and report GHG emissions under Federal Decree-Law 11, with a compliance deadline of May 30, 2026. Listed companies must publish annual sustainability reports per the SCA Governance Code, with IFRS S1/S2 alignment from FY2026. Financial institutions face a separate CBUAE deadline of September 2026. Penalties for non-compliance range from AED 50,000 to AED 2 million. Large emitters producing over 0.5 million metric tons of CO2e annually face accelerated obligations.
Q2. What ESG regulations apply to listed companies in Saudi Arabia?
Tadawul's sustainability disclosure guidelines are live and widely adopted, with 94 listed firms issuing reports in 2024 according to the Saudi Exchange. The CMA's green debt framework mandates ongoing ESG disclosures for bond issuers from 2025. The CMA is also integrating ESG into corporate governance rules for all listed companies. A full mandatory ESG reporting date has not been set, but the regulatory trajectory points toward binding requirements within the next reporting cycle.
Q3. When did ESG reporting become mandatory in Oman?
Oman made ESG reporting mandatory from January 2025 under Administrative Decision 77/2025. All companies listed on the MSX Main and Parallel markets must disclose against 30 GRI-aligned metrics. Reports are due within the first quarter of the financial year. The Central Bank of Oman has separately mandated climate change reporting and sustainability compliance for banks. MSX reported 100% disclosure compliance in its first mandatory cycle.
Q4. What ESG standards does Qatar require from 2026?
Qatar mandates IFRS S1 and S2 reporting for QCB-regulated banks and insurance firms from January 1, 2026. The QFCRA applies the same requirement to large regulated firms within the Qatar Financial Centre. First reports are due mid-2026. Qatar's approach represents the most explicit ISSB adoption in the GCC, with sustainability disclosures required to meet international comparability standards.
Q5. Is ESG reporting mandatory in Kuwait?
Yes. CMA Circular 04/2025, issued in February 2025, requires all Premier Market-listed companies on Boursa Kuwait to publish ESG reports from FY2025 onward. Reports must cover 30 KPIs aligned with the ISSB-based Boursa Kuwait ESG Disclosure Guide. The first filing deadline is June 30, 2026. Main Market companies are currently encouraged to report but face no binding mandate.
Q6. What does Bahrain's CBB ESG framework cover?
The Central Bank of Bahrain enforced mandatory ESG reporting for listed corporations and financial institutions from 2024. Disclosures must cover Scope 1, 2, and 3 emissions, aligned with GRI standards. The CBB framework also requires governance structure reporting and social practice disclosures, verified by third-party auditors. Non-compliance carries fines up to BHD 15,000. Bahrain was the first GCC state to enforce binding ESG disclosure requirements.
Q7. How do GCC ESG regulations compare across the six member states?
GCC ESG regulations exist in all six member states, with mandatory or near-mandatory disclosure requirements. Bahrain and Oman use GRI as their primary reference. Qatar and Kuwait have adopted ISSB (IFRS S1/S2). The UAE combines Federal climate law with SCA-mandated reporting. Saudi Arabia operates under voluntary guidelines with mandatory green debt disclosures. The 29 unified metrics provide a common baseline across all six.
