The legislation governing international arbitration in Oman is the Omani Law of Arbitration in Civil and Commercial Disputes, which was issued by decree No. 47/1997 (amended by Royal Decree 3/2007). It is mainly based on the UNCITRAL Model Law.
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The law distinguishes in Article (1) between national and international arbitration based on the relation of the subject matter to international trade” (OAL Article 1). The law also states in Article (3) that it governs between parties who are persons of public or private law, regardless of the nature of the legal relationship” (OAL Article 3). Furthermore, in Article (3).(1), arbitration is considered international if it is conducted under the rules of institutional arbitration, even if the institution is a domestic institution and the arbitral proceedings take place inside the country.
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Under Omani law, the parties to a dispute are free to determine the applicable rules and procedures. If a party fails to comply with the agreed procedures, the Omani courts can take any necessary actions on their behalf.
NEW YORK CONVENTION, 1958
Date of accession: 25 February 1999.
Entry into force on 26 May 1999.
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Oman is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), which ensures the enforcement of international arbitration awards within Oman and facilitates the recognition of Omani awards abroad. Additionally, Oman is a member of the International Centre for the Settlement of Investment Disputes (ICSID), which provides a specialized forum for investor-state disputes.
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Key Institutions and Arbitration Bodies in Oman:
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Oman Chamber of Commerce and Industry (OCCI) Arbitration Centre: The OCCI Arbitration Centre is the primary institution for arbitration in Oman, providing services for both domestic and international disputes. It operates under its rules, which mirror international arbitration standards.
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Muscat International Arbitration Centre (MIAC): Established to enhance the arbitration environment in Oman, MIAC aims to provide a modern, internationally recognized platform for arbitration and mediation. It attracts local and foreign parties seeking an impartial forum to resolve their disputes.
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Conclusion:
Arbitration in Oman has made significant strides in the past few decades, bolstered by a legal framework that aligns with international standards and a growing number of arbitration institutions. The country's commitment to providing a reliable and efficient arbitration system makes it an attractive option for resolving commercial disputes, particularly in industries such as construction and energy. Despite some challenges, the future of arbitration in Oman looks promising, with continued developments in infrastructure and arbitration-related services.
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