This blog post highlights the most important commercial laws that are fundamental for law graduates to learn about:

1. Commercial Companies Law:

The Commercial Companies Law determines the types of companies that may be registered in Oman, namely: general partnerships, limited partnerships, joint ventures, joint stock companies (public/closed), holding companies, limited liability companies, and one-person companies. The law provides the legal framework and requirements for establishing and forming these companies, the roles and responsibilities of company directors, the rights and obligations of shareholders, procedures for conversion, merger, dissolution, and liquidation of the company, as well as providing a concise legal framework for insolvency proceedings and company liquidation.

2. Labour Law:

The Labour Law governs the relationship between employers and employees and attempts to strike a balance for the legal protection of both parties. The law covers issues such as employment contracts, working hours, leaves, wages, occupational safety, termination of employment, and dispute resolution. A comprehensive understanding of labour law is crucial for law graduates aspiring to work in commercial law, as it enables them to advise on employment practices, compliance with Ministry of Labour directives, and managing workplace disputes.

3. Law of Arbitration in Civil and Commercial Disputes:

Given Oman’s growing focus on alternative dispute resolution, the Law of Arbitration in Civil and Commercial Disputes is critical as it provides the legal framework for arguably the most important mechanism for alternative dispute resolution: arbitration. Arbitration offers a flexible, confidential, and legally binding mechanism for settling disputes, making it an essential aspect of commercial practice in Oman, especially in sectors like construction, energy, and finance. The law outlines the rules and procedures governing arbitration agreements, the appointment of arbitrators, arbitration hearings, and the enforcement of arbitral awards. For law graduates, understanding arbitration laws is essential for advising clients on the most efficient and cost-effective dispute resolution mechanisms.

4. Personal Data Protection Law:

As Oman advances in digital transformation, the Personal Data Protection Law has become a crucial piece of legislation. This law sets regulations for the collection, processing, storage, and transfer of personal data. It imposes strict compliance requirements on businesses, including the need to obtain consent for data processing, implement security measures, and adhere to restrictions on cross-border data transfers. A solid grasp of the implications of this law is crucial for law graduates, especially those advising clients on data protection compliance and mitigating legal risks associated with data breaches or non-compliance with privacy regulations. The Personal Data Protection Law is particularly relevant in sectors such as banking, telecommunications, healthcare, and e-commerce that rely heavily on the processing of personal data.

Conclusion

The laws mentioned above are merely some of the key commercial laws that a commercial lawyer needs to know. The Omani legal system is continuously developing, and it is extremely important for all lawyers to stay up to date with new legal developments to be able to provide their clients with reliable legal advice. One of the easier ways to stay up to date with the latest updates in the Omani legal system is to simply follow Decree on LinkedIn and Instagram.

Written by:

Saja Al-Hosni

Saja is a legal intern at Decree. She has previously interned in an Omani law firm and in the University of Liverpool Law Clinic. She is interested in commercial, corporate, and international investment law. She holds an LLB from the University of Liverpool.

1. Free Trade Agreements:

Free Trade Agreements (FTAs) are treaties between countries that aim to reduce or eliminate barriers to trade, such as tariffs and quotas. These agreements also address non-tariff barriers, like regulatory standards, intellectual property protections, and services. FTAs play a significant role in fostering economic cooperation and increasing market access across borders. Oman is a member of several important FTAs, including the Oman-US FTA, which has been in effect since 2009.

2. Bilateral Investment Treaties:

Bilateral Investment Treaties (BITs) are agreements between two countries that outline the terms and conditions under which investments from one country will be protected when entering the other country. These treaties are crucial in promoting foreign investment by providing protections against expropriation, unfair treatment, and ensuring access to dispute resolution mechanisms like arbitration. In Oman, the government has signed multiple BITs to attract foreign investment and safeguard its economic interests, with the most recent being the Oman-Hungary BIT ratified in 2022. You can learn more about BITs by reading our blog post on the Key Provisions of Bilateral Investment Treaties.

3. Double Taxation Agreements:

Double Taxation Agreements (DTAs) are treaties between two or more countries designed to avoid the problem of double taxation on the same income. These agreements allocate taxing rights between countries and provide relief for taxpayers, typically through exemptions or tax credits. Oman has signed DTAs with several countries, such as the United Kingdom, France, and Germany, which help mitigate the risk of double taxation for individuals and businesses.

Conclusion

Understanding these three key international agreements is essential for law graduates seeking to navigate the complexities of global legal systems. Whether practising in international law or advising domestic clients on cross-border matters, a solid grasp of these treaties will enhance your legal expertise and open new career opportunities. For law graduates, knowledge of these agreements is particularly relevant in shaping Oman’s legal structure and ensuring its continued integration into the global legal landscape.

Written by:

Saja Al-Hosni

Saja is a legal intern at Decree. She has previously interned in an Omani law firm and in the University of Liverpool Law Clinic. She is interested in commercial, corporate, and international investment law. She holds an LLB from the University of Liverpool.

Formation and Framework

The Basic Statute of the State, often referred to as the Constitution of Oman, establishes the framework for forming the Council of Ministers and specifies its duties. It outlines the conditions for appointing the Prime Minister, deputy prime ministers, and other ministers, all of whom must be appointed by royal decree. While His Majesty Sultan Haitham Bin Tarik currently serves as the Prime Minister, the Basic Statute of the State provides a mechanism to appoint another individual to fulfil this role if necessary.

Key Duties of the Council of Ministers

As stipulated in article 51 of the Basic Statute of the State, the Council of Ministers is entrusted with a wide range of responsibilities, which can be categorised into three main areas:

Legislative Duties

One of the key responsibilities of the Council of Ministers is its legislative function. The Council of Ministers submits recommendations to the Sultan on matters of concern to the state, ensuring that key issues are addressed effectively. Additionally, it proposes draft laws and royal decrees, which are then issued by His Majesty after going through Majlis Oman. These legislative functions are fundamental in shaping the legal framework and maintaining the rule of law in Oman.

Setting State Policies

Another critical area of responsibility is setting state policies. The Council determines the general objectives and policies for comprehensive development, laying the groundwork for national progress. It also establishes the necessary procedures to implement these policies, ensuring their effectiveness. Furthermore, the Council debates development plans prepared by competent authorities, presenting them to Majlis Oman for review before submitting them to the Sultan for approval. Through these efforts, the Council of Ministers ensures that the policies are aligned with the public interest and national priorities.

Oversight Duties

Equally important are the Council of Minister’s oversight duties. The Council of Ministers oversees the functioning of the administrative apparatus of the state, ensuring that its various units perform their duties efficiently and in compliance with established laws and regulations. It monitors the implementation of laws, royal decrees, regulations, decisions, treaties, agreements, and court judgments, ensuring strict adherence to them. In addition, the Council of Ministers reviews proposals from ministries in their respective areas of competence, facilitating coordination and making informed decisions. These oversight responsibilities are crucial for maintaining efficiency, accountability, and transparency across the government.

These were some of the key duties of the Council of Ministers, you can read learn more about this extremely important government body by reading the Basic State of the State.

Written by:

Saja Al-Hosni

Saja is a legal intern at Decree. She has previously interned in an Omani law firm and in the University of Liverpool Law Clinic. She is interested in commercial, corporate, and international investment law. She holds an LLB from the University of Liverpool.

Entities subject to this regulation were originally required to comply with its provisions by February 2025, and this new amendment changes this deadline to February 2026.

Even though this technically relates to the Executive Regulation and not the actual Personal Data Protection Law, which in theory entered into force in February 2023, the extension of the deadline for complying with the executive regulation effectively means that neither the law or the regulation will not be enforced in Oman until February 2026.

You can read the consolidated version of the Executive Regulation of the Personal Data Protection Law by clicking on the link below:

The new amendment to article 71 of the Penal Law limits the ability of the court to choose not to implement a punishment by stipulating that this power of the court is only available in regard to punishments other than those relating to state security crimes, offenses that undermine the stature of the state, or terrorism and terrorism financing crimes.

This means that if someone is convicted in one of these newly listed crimes, the court has no choice but to implement the punishment imposed against them and the judge will not have the power to stay the execution of these punishments no matter the circumstances of the convict.

This new amendment will enter into force next week. You can read the full texts of Royal Decree 11/2025 in English on the link below: