The importance of commercial arbitration centres is increasing with the expansion of economic and commercial activities and initiatives in any society enjoying a free economy. It is well known that the commercial sector in the Sultanate, which follows free-market approach, has witnessed many positive developments over the last five decades.
According to data by the Ministry of Commerce and Industry, the number of registered commercial enterprises and activities in the various governorates of Oman exceeded 267,000. A large number of these Omani enterprises and companies practice different business activities that sometimes require prompt decisions on trade issues in the event of any trade disagreement or dispute with other parties.
The ministry seeks to encourage the private sector and strengthen its efforts to contribute to the development of the national economy. It also seeks to attract foreign direct investment in line with the strategic plans for reviving the economy and continue the development in these areas as well as in the development and activation of areas of cooperation with regional and international organisations and institutions.
Accordingly Royal Decree No 26/2018 established a special centre named “Oman Commercial Arbitration Centre” to be affiliated to Oman Chamber of Commerce and Industry, and enjoys legal status and financial and administrative independence. This centre is one of the important pillars for building a national economy as it encourages investment, and it is a tool for trust and confidence in economic and financial transactions.
In the event of any trade disputes, businesspeople resort to arbitration through judicial system in the country, thus the establishment of the centre is an addition to the judicial system, through which conflicts that occur between institutions and companies can be resolved, both in the country and abroad. Such centres are known to provide a number of facilities suitable for business enterprises at all times, following the rules of arbitration for fair and speedy disposition in decision-making.
The centre also gives parties the freedom to resolve disputes through an individual arbitrator or more in matters of trade, banking, finance, contracts and others. There are several world-renowned commercial arbitration centres, such as CIA and LCIA, and parties have to bear the high expenses of lawyers, experts and others when seeking their services. Once issued by the arbitrators, the decisions of these centres are considered final with no possibility of appeal.
Moreover, these centres practice confidentiality in the cases they handle.
The establishment of Oman Commercial Arbitration Centre is a necessity to breathe life into the economy and an alternative for filing cases and disputes and facilitating matters. This is done by designating venues for meetings and providing communication, translation and deliberation services, along with promoting services in countries to attract more investments. The centre can also provide training for Omanis to become future arbitrators, in addition to organising events, conferences, seminars, training programmes and other activities of interest to litigants.
Moreover, the establishment of the centre came from the belief of the important role of the private sector in the overall development process, which will increase during the next phase and attract more investment.
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