Dispute Resolution Clauses in Oman

A party must ensure that any final judgment granted in its favour is readily enforceable in all relevant foreign jurisdictions.  This is especially true where the opposing side is a foreign entity with assets vested offshore.  The 1996 Treaty for the Enforcement of Judgments, Judicial Delegation, and Courts Summons has made all Omani court judgments readily enforceable throughout the Gulf Cooperation Council (“GCC”).  If the opposing side has considerable assets in a neighbouring GCC country, a final binding Omani court judgment will be valuable, as it will be honoured and readily enforceable.  However, recognition and enforceability of an Omani court judgment in other foreign jurisdictions may vary, or perhaps be unclear.  All dispute resolution clauses should specify (i) the venue (i.e., the courts of a selected country or the seat of arbitration) and (ii) the substantive law which governs the underlying contract.  In instances where the parties grant jurisdiction to the domestic courts of a specific country, issues of venue and applicable law are invariably interlinked.