Investment and Trade Court to boost business environment

Observer

24-03-2025

The establishment of the Investment and Trade Court in Oman represents a significant advancement in the country's legal framework aimed at enhancing its business environment and attracting foreign investment.
This initiative, directed by His Majesty Sultan Haitham bin Tarik, is designed to address commercial disputes with efficiency and professionalism, thereby fostering investor confidence.
The primary objective of the Investment and Trade Court is to create a specialised legal body that can handle commercial disputes swiftly. This court will ensure that litigants' rights are protected while also aligning with international standards for dispute resolution. The need for such a court arises from the recognition that a transparent and efficient judicial system is crucial for boosting confidence among both local and foreign investors.
One of the most notable benefits of establishing this court is the expected reduction in case durations related to commercial disputes. By streamlining procedures, the court aims to deliver quicker verdicts, which will alleviate the financial burden on businesses involved in protracted legal battles. This efficiency is essential for maintaining a competitive business environment. According to the Supreme Judiciary Council (SJC), the establishment of the Investment and Trade Court also reflects the continued commitment of the judiciary to play its role and lay the foundations of justice and reinforce the rule of law in the Sultanate of Oman.
The SJC clarified that the Investment and Trade Court has jurisdiction to hear all lawsuits that involve a trader and are related to their commercial activities. It also hears disputes arising from investment contracts including lawsuits between partners or shareholders or between any of them and the company, as the case may be, in commercial companies including public shareholding companies listed in the stock market.
The SJC affirmed that the establishment of specialised courts represents one of the most important strategic objectives of the Supreme Judicial Council's long-term strategic plan for 2024-2040, which aims to develop the judicial system in the Sultanate of Oman and adopt the best judicial practices worldwide, including specialised judiciary.
This will make the Omani judiciary more efficient, given the speed with which specialised courts resolve disputes while enhancing performance and ensuring the legally mandated guarantees for litigants. This will achieve prompt justice, contribute to improving the business environment and accelerate economic development.
The new court reinforces Oman's commitment to protecting investors' rights. A well-structured legal system reassures potential investors about their investments' safety, making Oman a more attractive destination for capital inflows. It is also expected that this initiative could improve Oman's global rankings regarding ease of doing business.
By facilitating faster resolutions of trade-related disputes, the Investment and Trade Court will contribute to economic growth within Oman and a stable legal environment is vital for achieving these ambitious economic goals.
The court will be affiliated with the Supreme Judicial Council, ensuring that it operates under established judicial norms while focusing specifically on investment and trade matters. The Royal Decree No 35/2025 outlines its jurisdiction over lawsuits involving merchants and disputes arising from investment contracts.
The establishment of the Investment and Trade Court in Oman marks a pivotal step towards modernising its legal infrastructure to better accommodate foreign investments.
By prioritising swift dispute resolution and reinforcing investor protections, Oman positions itself as an increasingly attractive destination for international capital, ultimately contributing to sustainable economic development aligned with its Vision 2040 objectives.