The Sultanate of Oman is rapidly transforming its economic landscape, and a crucial component of this evolution is the modernization of its commercial judiciary. Recognizing the vital link between a robust legal system and attracting foreign investment, Oman has intensified efforts in recent years to create a fair, efficient, and investor-friendly environment for resolving commercial disputes. These changes are not merely procedural; they represent a fundamental shift towards greater legal stability and a more appealing destination for businesses.
Strengthening the Foundations of Oman’s Commercial Judiciary
Oman’s commitment to enhancing its legal framework is deeply rooted in the ambitious goals of Oman Vision 2040, a national strategy focused on sustainable development and economic diversification. A key pillar of this vision is fostering a climate of trust and confidence for investors, both domestic and international. To achieve this, the Supreme Judicial Council has been at the forefront of implementing sweeping reforms designed to improve litigation efficiency, reduce costs, and bolster the independence and credibility of the judicial system.
Restructuring the Supreme Judicial Council
One of the most significant institutional changes was the restructuring of the Supreme Judicial Council under Royal Decree No. 35/2022. This decree placed the Council under the direct supervision of His Majesty the Sultan, establishing an independent judicial authority free from executive influence. The Council’s powers were also expanded to include greater oversight of judges and courts, the implementation of objective selection processes, and a commitment to continuous training and professional development. This ensures impartiality and reinforces confidence in the system.
The Landmark Investment and Trade Court
The establishment of the Investment and Trade Court represents a pivotal moment in the development of Oman’s commercial judiciary. This specialized court, officially launched in March 2025 by Royal Decree No. 35/2025, is designed to handle commercial and investment disputes with a level of expertise and speed previously unavailable. It aims to alleviate the burden on general courts and provide more precise and informed rulings in complex commercial matters.
The court operates with binding timeframes for each stage of litigation, from submitting memoranda to delivering final judgments. This commitment to efficiency is further supported by the Case Preparation Office, a dedicated team of judges and legal assistants responsible for ensuring all case files are complete and ready for hearing. This proactive approach significantly reduces procedural delays and streamlines the dispute resolution process.
Enhancing Efficiency and Reducing Costs
Recognizing that time and cost are critical factors for businesses, Oman has implemented several measures to improve the efficiency and affordability of litigation. The Law on Simplifying Litigation Procedures for Certain Disputes (Royal Decree No. 125/2020) has reduced the complexity of civil and commercial cases, making the process more accessible and less burdensome.
Furthermore, a comprehensive review of judicial service fees, conducted in cooperation with the Ministry of Finance, resulted in the reduction of 14 fees and the cancellation of 5. A tiered lawsuit fee system, unifying fees across courts based on claim value, was also introduced, with some fees reduced by over 95% – a particularly beneficial change for small and medium-sized enterprises (SMEs).
Fayez bin Mubarak Al Maskari, Director of the Notary Public Affairs Department at the Supreme Judicial Council, emphasized that these reforms are directly aligned with Oman’s strategy to attract investment by offering high-quality judicial services at reasonable costs. He noted the positive impact of increased efficiency and digital procedures on reducing overall dispute resolution expenses.
Embracing International Standards and Alternative Dispute Resolution
Oman is actively working to align its legal system with international best practices. The country is a party to key regional and international agreements, including the 1996 GCC Agreement on the Execution of Judgments and the Riyadh Arab Agreement for Judicial Cooperation (1983). This demonstrates a commitment to recognizing and enforcing foreign court judgments while safeguarding national legal sovereignty.
Beyond traditional litigation, Oman is also promoting commercial arbitration as a viable alternative for dispute resolution. The Oman Centre for Commercial Arbitration, established in 2018, provides a flexible, confidential, and speedy forum for resolving disputes, particularly in sectors like construction, energy, and information technology. The Centre’s rules are aligned with international standards, and recent updates incorporate electronic procedures to further enhance efficiency.
Looking Ahead: A Modern and Transparent Judiciary
Legal experts, such as Ziyad bin Ali Al-Balushi, believe Oman’s commercial judiciary has entered a new era of institutional development. The focus on specialization, speed, and digital transformation is creating a more modern and transparent system that inspires investor confidence. Complementary initiatives, like rental dispute committees, are also helping to reduce court congestion and provide quicker resolutions.
Recent legislative updates, including amendments to the Commercial Companies Law and the Bankruptcy Law, demonstrate a deep understanding of market needs and a commitment to enhancing legal protection for investors. These reforms, coupled with the ongoing efforts to modernize the judicial system, are expected to have a significant positive impact on Oman’s international investment and business environment indicators, solidifying its position as a preferred destination for businesses in the region and beyond. The continued development of the commercial judiciary is not just a legal imperative, but a cornerstone of Oman’s economic future.
