OMAN: An introduction to Dispute Resolution
Practice Overview – Dispute Resolution in Oman
Oman’s dispute resolution landscape is undergoing a period of transformation, mirroring the broader economic and regulatory shifts under Oman Vision 2040. As the country moves towards building a competitive, private sector–driven economy with an emphasis on sustainability and innovation, the legal system is adapting to support this evolving commercial environment with the introduction of several legislative and regulatory changes. These changes are designed to support a more competitive, digitally integrated, and investor-friendly commercial environment.
Vision 2040: A Catalyst for Commercial and Legal Transformation
Vision 2040 outlines a strategic framework for Oman’s development, with a strong focus on economic diversification, digitisation, and private sector growth. This shift is already visible through the rollout of large-scale projects across key sectors including renewable energy, tourism, real estate, and public-private partnerships (PPPs).
These growth areas are particularly dispute-prone, given the scale of investment, involvement of international stakeholders, and long gestation periods. As such, dispute resolution will inevitably become a more critical function, not only in terms of managing risk but also in upholding contractual certainty and enforcing rights and obligations efficiently. The legal system is responding with targeted reforms to enhance judicial efficiency and investor confidence.
Key Legal Developments Shaping Dispute Resolution
In recent months, several landmark legislative reforms have been introduced, each of which will have a material impact on the way disputes are resolved, and legal services are delivered.
Establishment of the Court of Investment and Commerce (Royal Decree 35/2025)
A major development is the creation of a specialised court dedicated to commercial and investment disputes to streamline the resolution of business disputes by placing them in the hands of judges with commercial expertise and by offering more predictable, time-bound litigation processes.
This reform, set to enter into force in October 2025, aligns Oman with broader trends in the GCC region, where other jurisdictions have developed specialised commercial courts to enhance investor confidence and judicial efficiency. The new court adopts stringent timelines for pleadings and adjudication, aimed at accelerating dispute resolution and reducing procedural delays, requiring both litigants and lawyers to adopt proactive case management strategies and ensure high standards of advocacy and preparation. The shift is expected to improve not only the speed of adjudication but also the quality and predictability of commercial dispute outcomes.
Electronic Transactions Law (Royal Decree 39/2025)
In keeping with the digital transformation goals of Vision 2040, Oman recently promulgated a comprehensive Electronic Transactions Law which provides a robust legal framework for the use of electronic records, digital signatures, smart contracts, and trust services, thereby modernizing the way business is conducted, and disputes are documented.
Importantly, the law introduces criminal penalties for violations relating to digital forgery, unauthorised access, and misuse of digital trust services, highlighting the seriousness with which Oman is approaching the regulation of electronic commerce and data integrity. This law will also have implications for dispute resolution, especially in terms of admissibility and evidentiary standards for electronic contracts and communications.
Advocacy and Legal Consultancy Law (Royal Decree 41/2024)
Another significant legal milestone is the issuance of a new law regulating the legal profession in Oman. The Advocacy and Legal Consultancy Law introduces structural changes that differentiate between advocates, who are licensed to represent clients in court, and legal consultants, who are limited to advisory roles.
From a dispute resolution perspective, this distinction is important as it introduces clear regulatory demarcationsand promotes greater professional accountability. The law also mandates professional indemnity insurance, raising the standard of legal practice and offering clients an additional layer of protection. These reforms are likely to encourage more specialised and ethical legal services, which in turn will improve the overall quality of dispute resolution proceedings.
Personal Data Protection Law (Royal Decree 6/2022)
Although enacted earlier, Oman’s first standalone Personal Data Protection Law remains highly relevant to current trends in dispute resolution, especially in the context of cross-border data flows, cybersecurity incidents, and technology-related disputes. The law aligns Oman with global privacy standards, reinforcing its position as a secure jurisdiction for data-driven business and providing a regulatory foundation for the resolution of privacy and data protection disputes, both through litigation and arbitration.
Pro-Arbitration Approach
Arbitration in Oman continues to evolve, marked by substantive institutional reforms and a parallel re-examination of its practical viability. In recent years, efforts to align Oman’s arbitral infrastructure with international standards have gained traction, though not without emerging complexities.
A key development has been the Oman Commercial Arbitration Centre’s (OCAC) continued institutional strengthening. In early 2025, OCAC confirmed that its internal committee had finalized a draft of amended arbitration rules. These updates are expected to bring its procedures more in line with international standards—streamlining case management, clarifying timelines, and introducing digital efficiencies. OCAC’s reform efforts have been publicly supported by the Oman Chamber of Commerce and Industry, which has actively promoted the Centre as a national venue for resolving commercial disputes.
Yet, arbitration in Oman is increasingly being scrutinised through the lens of cost and accessibility. While formally encouraged, arbitration is often viewed by local parties—especially in the construction and SME sectors—as expensive and procedurally heavy. Arbitrator fees, administrative costs, and legal representation continue to deter parties from opting for arbitration in mid- to low-value disputes.
This cost-conscious approach is reflected in the 2019 Oman Standard Conditions for Construction Contracts, which are widely used in post-Covid public sector projects. These conditions contain an “either-or” provision, whereby the dispute resolution method—arbitration or court litigation—is pre-selected by the parties. This marks a departure from the previous Standard Conditions for Construction in Oman, which included a default arbitration clause. The revised structure allows public authorities to tailor dispute resolution mechanisms to the specific needs of a project, while also reinforcing the notion that arbitration is no longer the automatic or preferred choice.
Oman’s judiciary has also maintained a pro-arbitration stance, consistently upholding arbitration agreements and staying court proceedings when valid arbitration clauses are invoked, as required by the Arbitration Law. However, a significant 2023 decision by the Omani Supreme Court raised concerns by allowing a lower court to review the validity of a London-seated ICC arbitral award, citing the Omani nationality of the debtor. This ruling has sparked debate about potential judicial overreach, especially considering Oman’s commitment to the New York Convention since 1999, which facilitates the enforcement of foreign arbitral awards.
In conclusion, these developments reflect a more complex arbitration landscape in Oman - one that embraces reform and modernisation while grappling with concerns over cost, accessibility, and the evolving expectations of contracting parties.
The Path Ahead: A Maturing Dispute Resolution Environment
These reforms and developments mark a significant step forward in aligning Oman’s dispute resolution framework with the needs of a modern, diversified economy. The establishment of specialised courts, the legal recognition of digital transactions, the restructuring of legal practice, data regulation and a pro-arbitration approach all point to a more structured, responsive, and business-oriented dispute resolution environment.
As Oman continues to attract foreign investment and implement Vision 2040, the volume and complexity of commercial disputes, particularly in high-growth sectors and complex cross-border matters, will see increased activity. As a result, Oman’s legal system is expected to grow in sophistication, responsiveness, and international relevance.