Arbitration is one of the most popular types of alternative dispute resolution methods used by parties to resolve a dispute, both in the private and public sectors in Oman. An often-cited reason for selecting arbitration is to reach a final resolution of a dispute in a timely, inexpensive and less formal manner.
Under the Omani Arbitration Law issued by Royal Decree 47/1997 (as amended), Article 4 defines “Arbitration” as the arbitration agreed upon by both parties to the dispute at their own free will, irrespective of whether the body that would be attending to the arbitration proceedings, in accordance with the agreement between the parties, is an organization, a permanent arbitration centre, or otherwise.
To ensure that disputes are resolved expeditiously, the Omani Arbitration Law (Sultani Decree
47/1997) sets time limits within which an award must be issued.
- clearly record the date of commencement of the arbitration proceedings in writing at the start of the arbitration; and
- both parties should communicate their consent for an extension beyond the initial arbitration period plus the six-month extension period before expiration of the extension period to the arbitral tribunal.