OAC Enhances Oman’s Commercial Arbitration Capacity: What It Means for Investors and Business Owners
MUSCAT: The recent “Muscat Arbitration Days” conference, hosted by the Oman Commercial Arbitration Centre (OAC), convened legal and commercial experts to examine the evolving arbitration landscape in Oman. A key panel, titled “Muscat: A New Hub for Arbitration – Opportunities and Challenges,” delved into the factors positioning Muscat as a potential regional center for commercial arbitration. Discussions focused on legal frameworks, institutional preparedness, and dispute-resolution mechanisms, highlighting both the opportunities and challenges within Oman’s expanding arbitration sector.
Issa bin Hamad Al Azri, Secretary-General of the Supreme Judicial Council, outlined recent legislative advancements, including the Foreign Capital Investment Law and the Public-Private Partnership (PPP) Law, which have modernized Oman’s legal framework. He emphasized that the creation of the Oman Commercial Arbitration Centre is part of this progression, aiming to formalize arbitration processes and improve their effectiveness across the Sultanate.
Al Azri noted the Supreme Judicial Council’s strategic commitment to broadening alternative dispute resolution methods, such as arbitration, mediation, and reconciliation committees. He stressed that arbitral awards become enforceable upon issuance under the arbitration law and its procedural safeguards. He further highlighted Oman’s diplomatic neutrality as a foundational element of its impartial legal identity, positioning the Oman Commercial Arbitration Centre as a magnet for legal talent and a means to enhance the country’s dispute resolution capabilities.
Ambassador Shaikh Dr. Suleiman Al Jabri, Chief of the Legal Affairs Department at the Ministry of Foreign Affairs, remarked that Oman is emerging as a preferred investment destination. He pointed out that establishing a transparent and coherent legal framework is essential to boosting investor confidence. Addressing challenges in international arbitration, he stressed that high costs and procedural delays underscore the need for a cost-efficient arbitration center in Oman.
Al Jabri affirmed that the Oman Commercial Arbitration Centre is well equipped to serve as a professional and effective venue for commercial arbitration by uniting experts to manage disputes competently. He acknowledged the significant strides Oman has taken in building a robust institutional and legislative arbitration environment, supported by a flexible legal system and transparent dispute-resolution procedures that instill investor assurance.
He also emphasized that Oman’s participation in international agreements and economic partnerships strengthens this arbitration framework, further solidifying the country’s reputation as a credible and competitive destination for international commercial arbitration.
Eng. Badr Al Maamari, Chairman of the Authority for Projects, Tenders and Local Content, described the current development phase marked by large-scale projects with complex technical demands that require sophisticated management tools. He stressed the importance of incorporating arbitration clauses in contracts to expedite project delivery, improve governance, and maintain a balanced relationship among contractors, consultants, and project owners.
Al Maamari added that arbitration provides a swift and effective dispute-resolution method, complemented by the rising use of mediation. He noted ongoing efforts to establish a clear and efficient process for invoking arbitration whenever disputes arise.
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Oman’s strategic development of a modern arbitration framework and the establishment of the Oman Commercial Arbitration Centre position the Sultanate as a competitive regional hub for efficient dispute resolution, vital for attracting foreign investment and supporting large-scale projects. For businesses, this means greater legal certainty and faster conflict resolution, while investors should consider leveraging Oman’s neutral, cost-effective arbitration environment to mitigate risks and enhance governance in complex contracts. Smart entrepreneurs and investors must now prioritize arbitration-ready contracts and closely monitor ongoing regulatory enhancements to capitalize on the emerging opportunities in Oman’s evolving commercial landscape.
