Alternate Dispute Resolution Law at Oman
Oman has developed a comprehensive legal framework for Alternative Dispute Resolution (ADR), encompassing arbitration and mediation, to facilitate efficient and amicable resolution of disputes.
⚖️ Legal Framework for ADR in Oman
1. Arbitration Law (Royal Decree No. 47/1997)
Oman's Arbitration Law, enacted in 1997 and based on the UNCITRAL Model Law, governs arbitration proceedings. It provides a flexible and internationally recognized structure for resolving disputes, allowing parties to choose their arbitrators and procedural rules. Notably, the law mandates that arbitral awards be issued within 12 months of commencement, extendable by six months upon court approval. Proceedings are typically conducted in Arabic unless otherwise agreed .
2. Oman Commercial Arbitration Centre (OCAC)
Established by Royal Decree No. 26/2018, the OCAC is an independent entity affiliated with the Oman Chamber of Commerce and Industry. It provides arbitration, mediation, and other ADR services for local, regional, and international disputes. The OCAC's Arbitration Rules, issued in 2020, align with international standards and offer a structured process for dispute resolution .
3. Mediation Rules (Decision No. 8/2021)
In July 2021, the OCAC introduced Mediation Rules to formalize and encourage the use of mediation in dispute resolution. These rules require mediations to conclude within three months unless extended by mutual agreement. They emphasize confidentiality, neutrality, and the mediator's role in facilitating settlement without imposing decisions. The rules also provide for the termination of proceedings if no settlement is reached or if a party withdraws .
🔑 Key Features of Oman's ADR System
Flexibility and Party Autonomy: Parties have the freedom to choose their ADR mechanisms, arbitrators, and procedural rules, promoting tailored dispute resolution.
Confidentiality: Both arbitration and mediation proceedings are confidential, protecting sensitive information and encouraging candid discussions.
Efficiency: The structured timelines for arbitration and mediation aim to resolve disputes promptly, reducing the burden on courts.
Integration with International Standards: Oman's ADR framework aligns with international norms, enhancing its attractiveness for global business and investment.
✅ Conclusion
Oman's ADR laws provide a robust and flexible framework for resolving disputes efficiently and amicably. The establishment of the OCAC and the introduction of formal arbitration and mediation rules reflect the country's commitment to modernizing its legal infrastructure and promoting a favorable environment for business and investment.
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