Commercial Arbitration in Oman: The Basics and Enforcing the Award

Arbitration in Oman is an alternative to the courts for resolving civil and commercial disputes: the parties agree that arbitrators they choose will decide their dispute, ending in a binding, enforceable award, under the Law of Arbitration in Civil and Commercial Disputes, Royal Decree 47/97. Said Ibrahim Ambusaidi Advocates (SIA), based in Al Khoudh, Muscat, drafts arbitration clauses, represents parties in the proceedings, and enforces awards.

What is arbitration, and when is it used?

Arbitration is an agreement to put a dispute before an arbitral tribunal instead of the courts. It rests on the will of the parties: there is no arbitration without agreement. That agreement takes two forms: an arbitration clause inserted in the contract itself before any dispute arises, or a submission agreement concluded after the dispute has arisen. The agreement must be in writing, and its subject must be one on which settlement is permitted.

Parties choose arbitration for its advantages: relative speed, confidentiality, the freedom to appoint arbitrators experienced in the subject of the dispute, and its suitability for commercial and international relationships. In return, the parties bear the arbitrators’ fees and the costs of the arbitration, so it should be weighed against litigation according to the nature and value of the dispute.

How do arbitration proceedings run?

The arbitral proceedings begin with a notice of the request for arbitration to the other party. The tribunal is then formed, a single arbitrator or an odd number agreed by the parties, or appointed by the court where they disagree. The tribunal, in consultation with the parties, fixes the seat, language, procedure, and the law applicable to the merits.

The procedure guarantees each party an equal opportunity to present its claim and defence: memoranda and documents are exchanged, testimony is heard, and expert reports are examined. The tribunal then issues a reasoned, signed award within the agreed period or the period set by law. An arbitral award has the authority of res judicata within the limits of what it decided.

What is the award’s authority, and how is it enforced?

An arbitral award binds the parties and cannot be challenged by the ordinary means available against court judgments. It can be attacked only by an action to set it aside, in a limited and exhaustive set of cases, such as the absence of a valid arbitration agreement, a breach of the right of defence, or the award’s conflict with public order in Oman. Outside those cases, the award stands.

To enforce the award, an order for its enforcement is sought from the competent court, which verifies that the conditions are met and then orders enforcement. Foreign awards are enforced in Oman under the rules of recognition and enforcement and the international conventions Oman has acceded to in this field, including the New York Convention on the enforcement of foreign arbitral awards.

Key facts

• Arbitration in Oman is governed by the Law of Arbitration in Civil and Commercial Disputes, Royal Decree 47/97.
• There is no arbitration without a written agreement, a clause in the contract or a submission after the dispute.
• The tribunal is formed of an odd number of arbitrators, and each party is guaranteed an equal right of defence.
• An arbitral award has the authority of res judicata and can be challenged only by an action to set it aside, in limited cases.
• The award is enforced by order of the competent court after its conditions are verified.
• Foreign awards are enforced under the rules of recognition and international conventions, including the New York Convention.

When to involve a lawyer

Involve a lawyer when drafting the arbitration clause in your contract, because a defective clause can void it or open a dispute over jurisdiction. You need one still more when a dispute actually arises: in appointing the arbitrator, preparing the claim and defence memoranda, examining the evidence, and then enforcing the award or seeking to set it aside where a ground exists.

At Said Ibrahim Ambusaidi Advocates (SIA) we draft arbitration agreements, represent clients before arbitral tribunals, and handle set-aside actions and enforcement applications before the courts across Oman. The first consultation is free by phone or WhatsApp on +968 9706 3030. We are based in Al Khoudh, Seeb, Muscat, and work Sunday to Thursday, 9:00 to 13:00 and 14:00 to 17:00, in Arabic and English.

This article is general legal information, not legal advice.