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.)
that third-party funding arrangements are, in principle, assessed by reference to general contract law princi - ples and, where relevant, professional conduct con - siderations, rather than a dedicated funding-specific code. This is an evolving area of practice in Oman, and market use of third-party funding for arbitration remains relatively limited compared with more mature funding markets, although interest is increasing along - side the broader growth of high-value arbitration activ - ity in the Sultanate. In the absence of clear rules, par - ties considering funded arbitrations seated in Oman should exercise caution and ensure that the funding arrangement does not raise issues under general prin - ciples of Omani law, including as to champerty-like concerns, disclosure to the tribunal, and potential cost consequences. 13.4 Consolidation The Arbitration Law does not contain an express, general statutory power for either an Oman-seated tribunal or the Omani courts to order the consolidation of separate arbitral proceedings in the absence of the parties’ agreement. Consolidation is therefore gener - ally only available where the arbitration agreements in question, or the institutional rules the parties have adopted, expressly provide for it, or where all parties to the separate proceedings subsequently agree to consolidate them. Where parties anticipate the pos - sibility of related, multi-contract disputes, for exam - ple in complex construction or development projects involving a chain of related agreements, it is advisable
to address consolidation and the joinder of related proceedings expressly in the arbitration clauses, including through institutional rules, such as those of the Oman Commercial Arbitration Centre, that contain their own consolidation mechanisms, since the default statutory position under Omani law does not provide a court or tribunal with an independent power to compel consolidation without such agreement. 13.5 Binding of Third Parties An arbitration agreement, and consequently an award, generally binds only the parties to it, reflecting the consensual foundation of arbitration under Omani law. Third parties may, however, become bound in certain recognised circumstances, including through assign - ment or succession to a party’s rights and obligations under the underlying contract, through agency, or where their conduct demonstrates clear acceptance of, or reliance on, the arbitration agreement, such that it would be inequitable to allow them to disclaim it. Omani courts approach the binding of non-signatory third parties cautiously and require a clear legal or factual basis before extending the effect of an arbitra - tion agreement or award to a party that did not sign it. Where such a basis is established, Omani law does not draw a formal distinction between binding domes - tic and foreign third parties, and the same underlying principles of consent, assignment, agency or estoppel would in principle apply irrespective of the third party’s nationality or place of establishment.
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