Saturday 27 / December / 2025
Muscat: In recent years, the Sultanate of Oman has intensified efforts to enhance its commercial judicial system by establishing a fair, efficient, and investor-friendly legal environment.
These efforts aim to strengthen investor confidence through the creation of specialised judicial mechanisms, most notably the establishment of the the Investment and Trade Court , which represents a key step taken by the Supreme Judicial Council to enhance legal stability and investment attractiveness.
These measures form part of broader efforts to modernise legislation in line with the objectives of Oman Vision 2040 and the requirements of sustainable development. The legal and judicial sector has witnessed notable improvements in litigation efficiency, cost reduction, and the strengthening of judicial independence and credibility.
Within this context, the Sultanate of Oman implemented institutional reforms that enhanced the reliability of the judicial system.
The Supreme Judicial Council was restructured under Royal Decree No. 35/2022 and placed under the direct supervision of His Majesty the Sultan. This restructuring established an independent judicial authority responsible for managing judicial affairs away from executive influence, while granting the Council expanded powers to oversee judges and courts, adopt objective selection mechanisms, and ensure continuous training and professional development.
These reforms aim to uphold judicial impartiality and credibility, reinforcing confidence among citizens and foreign investors alike that disputes will be resolved fairly and objectively, regardless of nationality or circumstances.
The Sultanate of Oman has also focused on improving the efficiency and speed of litigation, recognising its direct impact on the business environment.
New mechanisms have been adopted to accelerate dispute resolution through legislative updates, procedural reforms, and the use of modern digital technologies in case management.
Among the most prominent legislative developments is the Law on Simplifying Litigation Procedures for Certain Disputes, issued by Royal Decree No. 125/2020, which reduced procedural complexity in civil and commercial cases. In addition, the Investment and Trade Court Law, issued by Royal Decree No. 35/2025, established binding timeframes for each stage of commercial and investment litigation, including deadlines for submitting memoranda and responses, with the aim of delivering swift and effective resolutions.
The law also introduced the Case Preparation Office, comprising judges and legal assistants tasked with preparing case files, completing missing documentation—such as commercial registration records—and facilitating the exchange of pleadings before the first hearing. This mechanism has significantly reduced procedural delays and improved case readiness.
Regionally, Oman’s efforts to accelerate commercial litigation are aligned with prevailing trends among Gulf Cooperation Council (GCC) countries.
By adopting binding timelines and integrated digital systems, the Sultanate seeks to keep pace with international best practices, improve its ranking in global contract enforcement indicators, and position its judiciary as a preferred forum for dispute resolution over arbitration or foreign courts.
Alongside procedural efficiency, Oman has prioritised reducing litigation-related financial costs to ensure access to justice, particularly for small and medium-sized enterprises. In cooperation with the Ministry of Finance, the Supreme Judicial Council conducted a comprehensive review of judicial service fees, resulting in the reduction of 14 fees and the cancellation of 5 fees, thereby reinforcing freedom of litigation and improving the quality and accessibility of judicial services.
One of the most significant reforms was the introduction of a tiered lawsuit fee system, unifying fees across primary and appellate courts based on claim value. Some fees were reduced by more than 95 percent, encouraging small businesses to pursue their rights without financial burden.
Fayez bin Mubarak Al Maskari, Director of the Notary Public Affairs Department at the Supreme Judicial Council, explained that these reforms align with Oman’s strategy to improve the business environment and attract investment by offering high-quality judicial services at balanced and reasonable costs.
He noted that litigation efficiency, digital procedures, and shorter case durations have reduced legal expenses and overall dispute resolution costs, further enhancing investor confidence.
In terms of international legal openness, the Omani legislator has established a clear framework for recognising and enforcing foreign court judgments, ensuring a balance between respecting international rulings and preserving national legal sovereignty. Oman is a party to several regional and international agreements, including the 1996 GCC Agreement on the Execution of Judgments and the Riyadh Arab Agreement for Judicial Cooperation (1983), ratified in 1999.
Beyond formal litigation, the Sultanate actively promotes alternative dispute resolution, particularly commercial arbitration. Arbitration offers flexibility, confidentiality, and speed—features favored by investors in sectors such as construction, energy, and information technology.
To strengthen institutional infrastructure, the Oman Centre for Commercial Arbitration was established under Royal Decree No. 26/2018 as an independent, non-profit body supervised by the Oman Chamber of Commerce and Industry. The Centre has developed arbitration rules aligned with international best practices and recently completed an updated draft incorporating electronic procedures to enhance efficiency.
In March 2025, Royal Decree No. 35/2025 officially established the Investment and Trade Court as a specialized judicial entity, marking a major milestone in the development of Oman’s commercial judiciary. The court aims to resolve commercial and investment disputes efficiently through specialized judicial expertise, easing pressure on general courts and enhancing the precision of rulings.
Legal experts have noted that this step places Oman among GCC countries with specialized commercial courts, reinforcing investor confidence and supporting economic growth.
Ziyad bin Ali Al-Balushi, lawyer and legal consultant, stated that the commercial judiciary in Oman has entered a new phase of institutional development characterized by specialization, speed, and digital transformation. He emphasised that the Investment and Trade Court represents a qualitative leap toward specialized economic justice aligned with the scale of commercial and investment activity.
He highlighted the importance of expanding electronic case management systems and praised complementary initiatives such as rental dispute committees, which have reduced court congestion and provided swift resolutions.
Al-Balushi also underscored the growing role of the Oman Centre for Commercial Arbitration in promoting alternative dispute resolution mechanisms, noting that investor confidence depends not only on economic incentives but also on a modern, transparent, and efficient judicial system.
He concluded that legislative updates—including amendments to the Commercial Companies Law and the Bankruptcy Law—reflect a deep understanding of market needs, enhance legal protection for investors, and align with Oman Vision 2040, whose positive impact is increasingly reflected in international investment and business environment indicators.
