The 2026 Finish Line
The ISSB issued IFRS S1 (general sustainability disclosure requirements) and IFRS S2 (climate) in June 2023, effective for reporting periods beginning 1 January 2024. IOSCO endorsed the standards and urged regulators to consider adoption, accelerating global uptake and investor expectations.
In the UAE, listed markets already require sustainability reporting, and free zone rules are moving toward globally recognised frameworks. Private companies face rising pressure from banks and counterparties for comparable, verifiable disclosures. They should expect external assurance to become the norm by 2026.
Where IFRS S1 & S2 Fit in the UAE Rulebook (and What That Means for Private Firms)
UAE exchanges and regulators have built an ESG foundation—most visibly through SCA-linked guidance and ADX/DFM programmes—while the UAE Sustainable Finance Working Group (SFWG) has issued Principles for Sustainability-Related Disclosures for financial sector entities. IFRS S1 & S2 add a financial-materiality lens that investors prefer, and they expect connectivity to the financials.
Context for the table below: Companies ask whether they must “switch” from GRI-style reporting to ISSB. In practice, most UAE groups will map and layer, keeping impact-oriented disclosures where required (e.g., exchange guidance), while adding the ISSB’s investor-focused, financially material content.