Oman: A Dispute Resolution Overview

Oman’s dispute resolution framework continues to evolve in parallel with the country’s broader economic and institutional reform agenda under Oman Vision 2040. Over the past year, the Sultanate has introduced several significant legal and structural developments that are reshaping how commercial disputes are resolved, with an emphasis on efficiency, predictability and alignment with international best practices. These changes are particularly relevant in the context of increased private sector participation, foreign investment and complex cross border transactions across sectors such as infrastructure, energy, finance, real estate and technology.

While arbitration remains an important feature of Oman’s dispute resolution landscape in terms of big-ticket disputes, recent reforms in court litigation, mediation and financial regulation signal a more diversified ecosystem for resolving commercial disputes.

Court of Investment and Commerce – An Institutional and Procedural Reform of Commercial Litigation

One of the most consequential developments in the past year has been the establishment and operationalisation of the Court of Investment and Commerce pursuant to Royal Decree 35/2025. The court commenced operations on 1 October 2025 and has since assumed exclusive jurisdiction over a wide category of commercial and investment-related disputes, including disputes arising from investment contracts, shareholder and corporate disputes, banking and financial transactions, bankruptcy, intellectual property, electronic commercial transactions, public–private partnership contracts, and matters connected with arbitration.

The Court of Investment and Commerce represents a structural shift in Oman’s litigation landscape. By concentrating complex commercial disputes before specialised judges drawn from the Supreme Court, courts of appeal and primary courts, the reform seeks to improve both the quality and speed of adjudication. The law establishing the court introduces a streamlined, technology-driven procedural framework, including mandatory electronic filing, expedited service mechanisms, and strict timelines for pleadings. The creation of a dedicated Lawsuit Preparation Office, tasked with early case management and document verification, reflects a move towards more disciplined administration of litigation.

Early experience since the court became operational suggests that commercial cases are being processed more expeditiously than under the general court system, particularly at the preparatory and first instance stages. While it remains too early to draw definitive conclusions on long term timelines or jurisprudential consistency, the court’s design aligns with regional trends favouring specialised commercial courts as a means of enhancing investor confidence and reducing procedural delays.

From a disputes perspective, the Court of Investment and Commerce is likely to influence forum selection decisions in high value and technically complex disputes, especially for parties who may previously have viewed court litigation in Oman as slow or unpredictable. At the same time, the court’s jurisdiction over arbitration-related matters underscores its potential role in shaping the interface between litigation and arbitration going forward.

Strengthening the Role of Mediation: Accession to the Singapore Convention

Another notable development is Oman’s accession to the United Nations Convention on International Settlement Agreements Resulting from Mediation (the Singapore Convention on Mediation) by Royal Decree 6/2026, issued in January 2026. The Convention provides a uniform international framework for the recognition and enforcement of settlement agreements resulting from mediation in cross border commercial disputes.

Oman’s accession signals an increased institutional endorsement of mediation as a viable and enforceable dispute resolution mechanism in its own right, as opposed to a pre-litigation or pre-arbitration step, particularly in international commercial contexts. By enabling mediated settlement agreements to be enforced directly in convention states, subject to limited defences, the convention reduces one of the traditional barriers to mediation, which is uncertainty around enforceability of its negotiated outcomes. There is already a reliable mediation process framework in the form of Mediation Rules of the Oman Commercial Arbitration Centre for parties seeking institutional mediation proceedings.

In practical terms, the Convention is expected to complement the existing dispute resolution mechanisms. Its benefits will likely be felt in cross border disputes involving international investors and commercial parties seeking efficient, cost-effective and relationship preserving outcomes. The Convention’s effectiveness in Oman will ultimately depend on domestic procedural implementation and judicial familiarity with its enforcement framework, which will develop over time.

Nevertheless, accession to the Singapore Convention reinforces Oman’s broader policy direction of aligning its dispute resolution framework with international standards and offering parties a wider range of credible options for resolving commercial disputes involving Omani parties.

IFCO – Establishment of a New Financial Jurisdiction

In January 2026, Oman issued Royal Decree 8/2026 establishing the International Financial Centre of Oman (IFCO) and promulgating its governing law. IFCO is conceived as a specialised financial jurisdiction with legal, administrative and financial independence, operating under its own legislative framework distinct from general Omani law, subject to limited carve outs for matters such as criminal law, taxation, anti money laundering and national security. IFCO will be located in Madinat Al Irfan in the capital city of Muscat.

Although IFCO is at an early stage of development, its legal architecture is significant from a disputes perspective. From a dispute resolution standpoint, IFCO represents one of the most significant structural developments in Oman’s legal landscape in recent years. The law establishes a self contained regulatory and judicial ecosystem, including a dedicated dispute resolution tribunal with jurisdiction over disputes arising within or through IFCO and those governed by IFCO legislation. Contracts and transactions that meet the statutory criteria are deemed to be concluded within IFCO and are subject exclusively to its legal regime, even where elements of performance occur outside its physical boundaries. Although not officially confirmed, IFCO could potentially be regulated by a legal framework based on common law, much like its counterparts in the GCC like the DIFC and the QFC. This could offer predictability and comfort to parties and businesses accustomed to common law regimes.

If fully implemented as envisaged, IFCO will introduce an independent forum for resolving high value financial and commercial disputes within its jurisdiction. This could, over time, influence jurisdictional planning, choice of law clauses and dispute resolution strategies for parties operating in or through IFCO’s framework.

At present, however, IFCO’s practical impact on dispute resolution in Oman remains prospective as its dispute resolution framework is still at a formative stage. Key aspects such as the composition of its dispute resolution tribunal, drafting and issuing its laws and regulations and the rules for interaction with the onshore court system are under consideration and will become clearer in due course. As IFCO moves from legislative establishment to operational reality, its success as a dispute resolution venue will depend on judicial independence, procedural clarity and the confidence of international market participants. At this stage, formalising and implementing IFCO’s legislative and operational framework as expeditiously as practicable remains key.

Outlook for Dispute Resolution in Oman in 2026

Taken together, these developments reflect a maturing dispute resolution environment in Oman, indicated by greater institutional specialisation, procedural efficiency and openness to alternative dispute resolution mechanisms. The establishment of the Court of Investment and Commerce addresses longstanding concerns around the handling of complex commercial litigation, while accession to the Singapore Convention and the creation of IFCO expand the range of tools and forums available to commercial parties while dealing with Omani parties and business ventures.

In the year ahead, much will depend on how these new institutions perform in practice and how quickly jurisprudence and procedural certainty around them develop. What is clear, however, is that Oman’s dispute resolution framework is undergoing a recalibration aimed at supporting a competitive, investor friendly and internationally connected business environment.