Oman Strengthens Commercial Judiciary to Boost Investor Confidence and Economic Growth

Muscat, The Gulf Observer: In recent years, the Sultanate of Oman has intensified efforts to modernize its commercial judicial system, establishing a fair, efficient, and investor-friendly legal environment aimed at strengthening investor confidence and supporting sustainable economic development.

Central to these reforms is the Investment and Trade Court, established under Royal Decree No. 35/2025, which represents a significant step by the Supreme Judicial Council to enhance legal stability, accelerate dispute resolution, and reinforce Oman’s investment attractiveness.

These measures align with the objectives of Oman Vision 2040 and broader sustainable development goals, encompassing improvements in litigation efficiency, cost reduction, judicial independence, and institutional credibility.

Judicial Reforms and Institutional Strengthening

Under Royal Decree No. 35/2022, the Supreme Judicial Council was restructured and placed under the direct supervision of His Majesty the Sultan, establishing an independent judicial authority responsible for managing judicial affairs free from executive influence. The Council now has expanded powers to oversee judges and courts, implement objective selection mechanisms, and ensure continuous professional development.

These reforms are aimed at upholding judicial impartiality, ensuring disputes are resolved fairly and objectively, and reinforcing confidence among citizens and foreign investors alike.

Enhancing Litigation Efficiency

Oman has adopted legislative and procedural reforms, including the Law on Simplifying Litigation Procedures for Certain Disputes (Royal Decree No. 125/2020) and the Investment and Trade Court Law, which introduced binding timeframes for commercial and investment cases. The law also established a Case Preparation Office to organize case files, complete missing documentation, and facilitate the exchange of pleadings prior to hearings, significantly reducing procedural delays.

These initiatives place Oman in line with regional and international best practices, enhancing its global ranking in contract enforcement indicators and positioning its judiciary as a preferred forum for dispute resolution.

Reducing Litigation Costs and Improving Access to Justice

In cooperation with the Ministry of Finance, the Supreme Judicial Council reviewed judicial service fees, reducing 14 fees and canceling 5 fees, while introducing a tiered lawsuit fee system based on claim value. Some fees were reduced by over 95%, particularly benefiting small and medium-sized enterprises by lowering financial barriers to justice.

Fayez bin Mubarak Al Maskari, Director of the Notary Public Affairs Department at the Supreme Judicial Council, highlighted that these reforms strengthen Oman’s business environment and attract investment by providing high-quality judicial services at reasonable costs, while reducing legal expenses and overall dispute resolution costs.

International Legal Openness and Alternative Dispute Resolution

Oman has established a framework for recognizing and enforcing foreign court judgments, balancing respect for international rulings with national legal sovereignty. The Sultanate 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).

Alongside formal litigation, Oman actively promotes alternative dispute resolution, particularly commercial arbitration. The Oman Centre for Commercial Arbitration, established under Royal Decree No. 26/2018, operates as an independent body under the supervision of the Oman Chamber of Commerce and Industry, developing arbitration rules in line with international best practices and incorporating electronic procedures to improve efficiency.

Specialized Commercial Judiciary

The establishment of the Investment and Trade Court in March 2025 marks a major milestone in Oman’s commercial judiciary, enabling efficient resolution of disputes through specialized judicial expertise and reducing pressure on general courts. Legal experts note that this positions 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 Oman’s commercial judiciary has entered a new phase characterized by specialization, speed, and digital transformation. He emphasized the importance of expanding electronic case management systems and praised initiatives such as rental dispute committees, which reduce court congestion and provide swift resolutions.

Blalushi also highlighted the Oman Centre for Commercial Arbitration’s growing role in promoting alternative dispute resolution, noting that investor confidence depends on a modern, transparent, and efficient judicial system. Legislative updates, including amendments to the Commercial Companies Law and the Bankruptcy Law, further strengthen legal protection for investors and reflect Oman Vision 2040’s positive impact on the business environment.

Conclusion

Oman’s ongoing reforms in the commercial judiciary demonstrate a strategic commitment to enhancing legal stability, reducing procedural delays, and fostering an investor-friendly environment, ensuring that the Sultanate continues to be a preferred destination for investment and economic activity in the region.