A local partner fails to contribute its share, a government authority terminates a usufruct early, a contractor refuses to hand over the project, or investors fall out over how the company is run. These are typical investment contract disputes: usually high in value, with several parties and interlocking contracts. Since October 2025 they have had a specialised judge, the Court of Investment and Commerce. This article explains where these disputes are heard, how they are brought, the alternatives, and how investors can protect their position before a dispute arises.
Common investment disputes
- Disputes between investors: over shares, management, profits and a partner's exit.
- Disputes with contracting authorities: usufruct and long-term lease agreements, investment agreements and public-private partnership contracts.
- Project delivery disputes: with contractors, suppliers and consultants, close to construction disputes.
- Finance disputes: with banks and lenders over loans and security.
- Licensing and administrative decisions affecting the project.
Where are investment contract disputes heard?
Under Article 11 of the Court of Investment and Commerce Law issued by Royal Decree 35/2025, the Court hears disputes arising from investment contracts, as well as cases where one party is a trader and the dispute relates to its commercial business, including disputes between partners or shareholders. The Court's guide classifies a case as "investment" where one of the companies involved is subject to foreign investment according to its commercial registration, and the circuit depends on value:
- A single judge where the claim does not exceed OMR 100,000.
- A three-judge circuit above that or where the claim is unvalued.
Purely administrative decisions, such as refusing a licence, may follow their own grievance and challenge routes depending on the decision, which needs case-by-case review.
Core documents for an investment claim
The guide lists the commercial registration of one of the companies showing it is subject to foreign investment and any documents proving the claim. In practice you will also need the investment or usufruct agreement and annexes, notices and correspondence, the approved feasibility study and timetable, and financial documents. Foreign documents must be filed with Arabic translations.
Court or arbitration?
Many investment contracts contain an arbitration clause, in which case the dispute goes to arbitration, and the appellate circuits of the Court of Investment and Commerce hear actions to annul arbitral awards.
- Court: relatively low fees, set procedural periods and three levels of court.
- Arbitration: confidentiality, specialist arbitrators, flexible language and procedure, and international enforcement under the New York Convention. See commercial arbitration in Oman.
Handling an investment dispute
- Review all the contracts together: investment, shareholder, finance and construction, to identify obligations, the dispute clause and governing law.
- Preserve rights and deadlines: serve formal notices on time, since many contracts require notice within a set period.
- Try to settle: by negotiation or mediation, especially in long-term relationships.
- Interim measures where needed: precautionary attachment or stays of enforcement to protect assets pending the outcome.
- File the claim or request arbitration with a complete file; see filing a case online.
- Enforce the judgment in Oman or abroad; see enforcing foreign judgments and arbitral awards.
Protecting your investment before a dispute
- Draft the dispute resolution clause carefully: forum, governing law and language.
- Use a shareholders' agreement covering exit, valuation and deadlock.
- Align the investment agreement with finance and construction contracts.
- Document every change, approval and delay in writing at the time.
- Know the guarantees the law gives investors, including that a project cannot be seized or its funds frozen except by a court judgment.
Frequently asked questions
Which court hears investment contract disputes in Oman?
The Court of Investment and Commerce, established by Royal Decree 35/2025, unless the parties agreed to arbitration.
Do I need a lawyer?
Under the Court's guide, a company claiming more than OMR 10,000 or an individual claiming more than OMR 30,000 must file through a lawyer, which covers most investment disputes. See when you need a lawyer.
Can a foreign investor who does not live in Oman bring a claim?
Yes, through a lawyer under a notarised power of attorney, with the case followed online through the Court platform.
How long does an investment case take?
It follows the Court's procedural periods, such as fifteen days to reply and ninety days for judgment, extendable, and longer if an expert is needed. See how long a commercial case takes.
Sources: the Court of Investment and Commerce Law issued by Royal Decree 35/2025 and the Unified Guide to Litigation Procedures before the Court issued by the Supreme Judicial Council, as at the date of publication.
If you are involved in an investment dispute, see our commercial and investment litigation service or contact Dr. Abdullah Al Rashdi Office on WhatsApp or +968 92000841.