Investment and Trade Court

In line with its Vision 2040, the Sultanate of Oman issued Royal Decree No. 35/2025 ("the Law"), Establishing the Investment and Trade Court ("the Court") on 23 March 2025, aiming to modernise the judicial system and foster an encouraging environment for investment.

This article aims to highlight the newly introduced provisions, the significance of the Law, and its impact on the investment climate in the Omani market.

The Law outlines the Court's jurisdiction, structure, and procedures for managing commercial and investment-related disputes. The Court`s objective is to streamline and improve the efficiency of dispute resolution within the relevant sectors, thereby creating a more favourable environment for business and investment in Oman.

The Law confirms that the existing courts will continue to handle lawsuits, orders, and requests that fall under the jurisdiction of the Court, provided they were filed before the new Law's enforcement date being 1 October 2025.

Establishment and Jurisdiction of the Court

The Court is established under the Supreme Judicial Council (“the Council”), with its headquarters in the Governorate of Muscat .

With the exception of administrative, labour, and rental disputes, the Court has exclusive jurisdiction over commercial disputes involving businesses and disputes arising from investment contracts. This includes disputes between partners or shareholders, disputes related to commercial assets, foreign capital investment, maritime sales, banking operations, bankruptcy, arbitration, intellectual property rights, competition protection, electronic commercial transactions, and public-private partnership contracts.

The Court is also responsible for issuing all orders and ruling on grievances related to these orders.

Court Structure and Administration

The Court is headed by a president, appointed by the Vice-Chairman of the Council with the Council's approval. The president must hold a position not lower than that of a Supreme Court Judge.

The Court comprises first-instance and appeal circuits, which may be established outside Muscat Governorate by a decision of the Vice-Chairman with the Council's approval.

Judges are selected from among the Judges of the Supreme Court, Courts of Appeal, and Courts of First Instance, and are assigned by the Vice-Chairman with the Council's approval.

General Assembly and Committee for Temporary Affairs

The Court has a General Assembly consisting of all its judges, which is responsible for matters related to the Court's system and internal affairs, including the formation of circuits, distribution of cases, and assignment of judges.

A Committee for Temporary Affairs, headed by the president of the Court, assumes the competencies of the General Assembly in urgent matters during judicial vacations.

Legal Proceedings and Electronic System

A dedicated electronic system is established for registering lawsuits, submitting requests for the issuance of orders on petitions, orders of specific performance, and handling all related procedures, appeals, and grievances.

All applications and related requests are filed electronically, and notifications are made to addresses recorded in in the civil register for individuals, according to the Royal Oman Police (ROP) register, or in the commercial register for businesses, according to the Ministry of Commerce, Industry and Investment Promotion (MOCIIP) register.

The Law has introduced a new department to initially review the case submitted by the plaintiff, the Case Preparation Office (the “CPO”). The CPO is headed by a judge, and its function is to verify the payment of fees, initiate case preparation procedures, and ensures the completeness of necessary case documents submitted by the plaintiff within three working days of electronic registration.

Procedural Timelines and Case Management

The defendant has fifteen days to submit a response to a case electronically, and the plaintiff may comment on the response within fifteen days.

The Court must adjudicate cases within ninety days of referral, with a possible extension of forty-five days for valid reasons.

Hearings and Expert Reports

The Law allows for the hearings to be conducted through electronic visual communication, and the Court may request additional documents or data electronically. Additionally, parties may submit expert reports electronically whilst the Court retains the right to appoint experts if necessary.

Execution of Judgements

The execution of judgements is supervised by an Execution Judge, appointed by the Council for a renewable one-year term. The Execution Judge resolves all disputes related to execution of judgements, and appeals against their decisions are heard by the appeal circuits of the Court.

Fees and Final Provisions

Fees for cases, requests, and guarantees are determined by the Council with the Ministry of Finance's approval.

The Civil and Commercial Procedure Law applies to procedures not specifically addressed in this Law.

Digital Transformation in the Omani Judiciary

The Law places substantial emphasis on electronic communication between the Court and the involved parties, enabling them to interact via the available electronic platform. This includes the introduction of an electronic system for the registration of lawsuits, issuance of orders, and management of Court procedures, appeals, and grievances. All lawsuits and related actions must be filed electronically, with notifications sent to recorded addresses or through other suitable means.

Judgements and decisions will be notified electronically to the parties involved, providing a quick and efficient means of communication. However, there remains an option to request hard copies if needed, serving those who may require physical documentation. Furthermore, debtors can now inquire about and settle execution requests electronically, with decisions being automatically revoked upon full execution.

Key Benefits of the Law:

The Law offers numerous benefits, including:

• The establishment of a specialised court dedicated to trade and investment disputes ensures that such cases are handled by judges with expertise in these areas, leading to more informed and accurate judgements.
• The Law introduces an electronic system for filing lawsuits, issuing orders, and handling all related procedures, which significantly reduces paperwork and administrative delays, in addition to enhancing the efficiency and speed of the judicial process.
• The establishment of the Case Preparation Office ensures that cases are thoroughly prepared before being heard, reducing the likelihood of delays due to incomplete documentation or procedural errors.
• The Law sets timelines for various stages of the legal process, including the submission of responses, comments, and the adjudication of cases which will ensure that cases are resolved in a timely manner, providing quicker relief to the parties involved.
• Introducing the electronic systems for filing, notifications, and hearings modernises the judicial process and makes it more accessible.  This is particularly beneficial in a globalised business environment where parties may be located in different jurisdictions.
• The appointment of an Execution Judge to oversee the execution of judgements ensures that the enforcement process is closely monitored and disputes related to execution are promptly resolved.
• By focusing on investment and trade disputes, the Court will help alleviate the burden on the general judicial system, leading to more efficient case management in the general judicial system.

Conclusion

To conclude, we believe that the Law marks a significant advancement in modernising and enhancing the efficiency of Oman's judicial system, particularly concerning investment and trade disputes. The establishment of the Court, with its specialised jurisdiction, streamlined procedures, and use of technology, offers numerous benefits for businesses and investors.

The Law aims to contribute to a more stable and predictable legal environment, which is crucial for fostering economic growth and attracting investment. This specialised and efficient forum for resolving commercial and investment disputes should create a more favourable business and investment climate in Oman, potentially attracting more foreign investment and promoting economic growth.