OMAN Law and Practice Contributed by: Sultan Al Ghafri, Nasser Al Riyami, Abdullah Al Aufi and Joud Lashko, Al Khalili, Al Ghailani & Co. LLP (K&Co.)
ments, joint operating agreements, EPC contracts, drilling and services contracts, and long-term supply arrangements. Similar trends may be observed in the power and utilities sector, particularly as Oman con - tinues to expand its investment in renewable energy and green hydrogen projects pursuant to Vision 2040. Banking and finance, real estate development, and shareholder or joint venture disputes are also increas - ingly arbitrated. The prevalence of arbitration within these industries is unsurprising. Their projects typically involve substan - tial capital expenditure, extended contractual relation - ships, multiple contractors and subcontractors, com - plex technical issues and, in many instances, foreign investors, lenders or contractors who insist upon arbitration clauses. Arbitration offers a neutral forum capable of accommodating these features, keeps technical, high-value and often confidential matters out of public court proceedings, and ensures that any resulting award is readily enforceable across jurisdic - tions. The incorporation of arbitration clauses into internationally recognised standard forms, particularly the FIDIC suite of contracts, has further entrenched arbitration as the default mechanism for resolving dis - putes in these sectors. Beyond these traditional industries, arbitration is becoming increasingly common in technology, tele - communications and digital infrastructure projects as Oman continues to diversify its economy under Vision 2040. Indeed, arbitration is now encountered in almost every sector, although the intensity of arbitral activity varies considerably from one sector to another: share - holders’ agreements, joint venture arrangements and even contracts concluded between individuals fre - quently contain arbitration clauses, adopted in large part so that the parties may take advantage of the near-worldwide enforceability of arbitral awards under the New York Convention. 1.3 Arbitration Institutions The International Chamber of Commerce (ICC) remains the arbitral institution most frequently select - ed to administer international commercial arbitrations connected with Oman. Its prominence reflects the nature of the disputes typically arising in the Sultanate, being high-value construction, infrastructure, energy
and industrial projects involving international con - tractors, lenders and investors, and the fact that the FIDIC General Conditions commonly used on major Omani projects themselves provide for arbitration under the ICC Rules unless the Particular Conditions provide otherwise. International contractors, consult - ants and financiers active in Oman are accordingly well acquainted with the ICC Rules, and parties value the institution’s established procedural framework, its experienced case management and the international recognition of its awards. The London Court of International Arbitration (LCIA), the Singapore International Arbitration Centre (SIAC) and the Dubai International Arbitration Centre (DIAC) are likewise encountered with some frequency. The choice between them is generally driven less by the nature of the dispute than by the commercial back - ground of the transaction, the location of the parties and their financiers, and the seat agreed in the con - tract: LCIA arbitration has traditionally been favoured where English law and a London seat are chosen; SIAC is regularly encountered in transactions involving Asian investors or financing; and DIAC remains a com - mon choice for projects with a broader GCC dimen - sion. Ad hoc arbitration, most commonly under the UNCITRAL Arbitration Rules, also continues to feature in certain government and state-related contracts, although institutional arbitration remains the prevail - ing approach for complex international disputes. Within Oman itself, the Oman Commercial Arbitration Centre, established under Royal Decree No. 26/2018 and affiliated with the Oman Chamber of Commerce and Industry, is the Sultanate’s sole dedicated arbitral institution. The Centre has assumed an increasingly prominent role in the domestic arbitration landscape and has become the prevailing choice in arbitration clauses agreed by government and government- related companies and, increasingly, by local pri - vate companies. It is also favoured where the cost of the proceedings is a material consideration, since the Centre’s fees are lower than those charged by regional and other international arbitration centres. In June 2026, the Centre unveiled a new corporate identity together with a revised set of Arbitration Rules for 2026, alongside its 2025 Annual Report, reflect - ing a broader institutional modernisation effort aimed
674 CHAMBERS.COM
Powered by FlippingBook