Arbitration plays a critical role in dispute resolution in Oman, particularly in commercial, construction, and contractual matters. With increasing foreign investment and complex projects, arbitration has become a preferred alternative to court litigation. Under Omani law, arbitration is legally recognized, enforceable, and aligned with international standards.
At Daanshaaban, we support clients through arbitration advisory, claims preparation, legal interpretation, and dispute strategy tailored to Omani legal requirements.
This guide explains arbitration under Omani law, its legal framework, procedures, advantages, and enforcement.
Under Omani law, arbitration is a dispute resolution mechanism whereby parties agree to submit existing or future disputes to one or more arbitrators instead of national courts. The arbitrators issue a binding decision known as an arbitration award.
Arbitration is recognized as legally valid provided:
Once ratified, arbitration awards carry the same legal force as court judgments in Oman.
The principal legal framework governing arbitration in Oman is:
This law is heavily influenced by the UNCITRAL Model Law, ensuring compatibility with international arbitration standards and making Oman arbitration-friendly for both domestic and international parties.
All arbitration proceedings seated in Oman are governed by Royal Decree No. 47/1997, unless the parties explicitly agree otherwise.
The law regulates:
Understanding this law is essential to avoid jurisdictional challenges or procedural invalidity.
An arbitration agreement must be in writing and may appear as:
The agreement must clearly express the intention to resolve disputes through arbitration. Ambiguous or poorly drafted clauses are a common cause of arbitration failure in Oman.
Daanshaaban assists clients in drafting enforceable arbitration clauses aligned with Omani legal standards.
The arbitration process in Oman typically follows these steps:
The process is flexible and may be adapted by agreement of the parties.
Commercial arbitration is widely used in:
Commercial arbitration allows parties to appoint arbitrators with industry-specific expertise, making it particularly effective for technical disputes.
Compared to court litigation, arbitration offers:
These advantages make arbitration the preferred dispute resolution method for high-value commercial disputes in Oman.
For an arbitration award to be enforceable in Oman, it must:
The award must be ratified by the competent Omani court before execution.
Oman hosts recognized arbitration bodies, including:
Institutional arbitration provides procedural certainty and administrative support.
Daanshaaban provides:
Our Oman-focused expertise ensures compliance and effective dispute resolution.