TITLE:
The Implications of ESG for Oman’s Economy
AUTHORS:
Hilal Hamood Hilal Al-Sawai, Rayai Saif Rahsid Al-Amri
KEYWORDS:
ESG, Oman, Economic Diversification, Oman Vision 2040, Sustainable Development, Corporate Governance
JOURNAL NAME:
Open Journal of Business and Management,
Vol.14 No.1,
December
5,
2025
ABSTRACT: This article examines the implications of environmental, social, and governance (ESG) frameworks for Oman’s economic development, with particular focus on policy and practice. As Oman pursues its Vision 2040 agenda, ESG adoption is emerging as both a necessity and an opportunity for diversifying the economy, attracting sustainable investment, and enhancing competitiveness in global markets. The paper situates Oman within broader debates on sustainability in resource-dependent economies, analyzing the drivers, opportunities, and barriers to ESG implementation. It highlights that effective integration of ESG principles can support long-term resilience by fostering transparency, strengthening corporate governance, and enabling transitions toward renewable energy and non-oil sectors. At the same time, Oman faces institutional and regulatory challenges, including fragmented disclosure practices, limited ESG expertise, and uneven corporate readiness. Policy recommendations are advanced to guide regulators, firms, and investors in embedding ESG in national development strategies. The article contributes by contextualizing ESG adoption in a Gulf economy in transition, offering practical lessons for policymakers and business leaders.