International Commercial Arbitration at Oman
Sure! Here’s a comprehensive overview of International Commercial Arbitration in Oman:
🇴🇲 International Commercial Arbitration in Oman
🔷 Legal Framework
1. Arbitration Law (Royal Decree No. 47/1997)
Oman’s Arbitration Law is primarily governed by Royal Decree No. 47/1997, based on the UNCITRAL Model Law with some local adaptations.
This law applies to both domestic and international arbitration unless parties agree otherwise.
The law supports party autonomy, finality of awards, and limited court intervention.
2. International Treaties
Oman is a signatory to the New York Convention (1958) on Recognition and Enforcement of Foreign Arbitral Awards.
Oman is also a party to the ICSID Convention (Convention on the Settlement of Investment Disputes between States and Nationals of Other States), providing a framework for investor-state dispute arbitration.
It has various bilateral investment treaties (BITs) with arbitration provisions.
🔷 Arbitration Institutions in Oman
1. Omani Commercial Arbitration Centre (OCAC)
Established to promote arbitration in Oman.
Provides a framework for institutional arbitration under its own rules.
Offers services such as:
Arbitrator appointments.
Case management.
Mediation and conciliation services.
OCAC’s rules are aligned with international standards and UNCITRAL principles.
2. Ad Hoc Arbitration
Allowed under the Omani Arbitration Law.
Parties can choose to conduct arbitration without institutional involvement.
UNCITRAL Arbitration Rules are commonly used for ad hoc arbitration.
🔷 Seat of Arbitration and Procedural Aspects
Oman can be chosen as the seat of arbitration, meaning Omani law governs the arbitration procedure and courts have supervisory jurisdiction.
Arbitration hearings can take place inside or outside Oman.
The official language of proceedings is typically Arabic, but parties may agree to use English or another language.
🔷 Judicial Support and Enforcement
1. Role of Omani Courts
Courts in Oman have a supportive but limited role in arbitration:
Assistance with the appointment of arbitrators if parties cannot agree.
Granting interim measures upon request.
Enforcement of arbitral awards.
2. Enforcement of Arbitral Awards
Oman enforces foreign arbitral awards under the New York Convention.
Enforcement procedures are set out in the Arbitration Law.
Awards are generally recognized unless grounds such as invalid arbitration agreements or public policy violations apply.
🔷 Advantages of Arbitration in Oman
| Feature | Description |
|---|---|
| Modern Arbitration Law | UNCITRAL-based legislation promotes international best practices |
| Institutional Arbitration | Availability of OCAC and other centers |
| Treaty Network | Signatory to New York and ICSID Conventions |
| Judicial Support | Courts are arbitration-friendly and provide necessary assistance |
| Language | Arabic primary, with flexibility to use English |
| Strategic Location | Gateway to the Middle East and Gulf Cooperation Council (GCC) region |
🔷 Typical Arbitration Clause for Oman
“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration administered by the Omani Commercial Arbitration Centre (OCAC) under its Arbitration Rules. The seat of arbitration shall be Muscat, Oman. The language of the arbitration shall be [Arabic/English].”
🔷 Summary
| Aspect | Details |
|---|---|
| Governing Law | Royal Decree No. 47/1997 (based on UNCITRAL Model Law) |
| Key Arbitration Institution | Omani Commercial Arbitration Centre (OCAC) |
| International Treaties | New York Convention, ICSID Convention |
| Judicial Role | Limited and arbitration supportive |
| Language | Arabic (primary), English (commonly used) |
| Enforcement | Effective under New York Convention |
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