The legal system of Oman
A civil-law system with Sharia personal status, distinctive in the region for the Ibadi school of Islam which shapes both its jurisprudence and its historically consensual approach to authority. The civil code follows the Egyptian Civil Code of 1949, which transmitted French civil-law structure into the Arab world, while personal status, succession and family matters remain governed by Sharia as applied by the courts. Oman codified its civil law comparatively late, enacting a Civil Transactions Law in 2013, and has since replaced its commercial companies law (2019), foreign investment law (2019) and labour law (2023). A 2021 Basic Law revision created the office of Crown Prince for the first time, replacing the previous mechanism in which the ruling family selected a successor after the Sultan's death.
Legal tradition
Oman belongs to the mixed (civil law and islamic law) tradition. A civil-law system with Sharia personal status, distinctive in the region for the Ibadi school of Islam which shapes both its jurisprudence and its historically consensual approach to authority. The civil code follows the Egyptian Civil Code of 1949, which transmitted French civil-law structure into the Arab world, while personal status, succession and family matters remain governed by Sharia as applied by the courts. Oman codified its civil law comparatively late, enacting a Civil Transactions Law in 2013, and has since replaced its commercial companies law (2019), foreign investment law (2019) and labour law (2023). A 2021 Basic Law revision created the office of Crown Prince for the first time, replacing the previous mechanism in which the ruling family selected a successor after the Sultan's death.
How power is divided
Unitary. Eleven governorates headed by appointed governors, with municipal councils holding advisory functions over local services. No legislative competence exists below the national level.
Where law comes from
- The Basic Law of the State 1996
- As revised in 2021; Sharia is the basis of legislation.
- Royal decrees
- The instrument for all legislation; there is no independent legislative power.
- Civil Transactions Law 2013
- Codified obligations, contract and property on the Egyptian model.
- Sharia, Ibadi school
- Governs personal status, family and succession.
- Ministerial decisions
- Detailed regulation under enabling decrees.
The legal profession
Advocacy is regulated by the Ministry of Justice and Legal Affairs; Omani nationality is required for rights of audience, and foreign lawyers practise as consultants within licensed firms. Pleadings are in Arabic. Judges are appointed by royal decree on the recommendation of the Supreme Judicial Council. Notarisation is required for real property dispositions, and land registration is administered by the Ministry of Housing and Urban Planning.
Law by topic in Oman
- Business & CorporateForeign Capital Investment Law allowing full foreign ownershipRoyal Decree 50 of 2019 removed the minimum capital requirement and the general need for an Omani partner, permitting full foreign ownership in most activities.
- Constitutional LawA 2021 Basic Law that finally settled the successionThe Basic Law of 1996 was replaced in 2021 by a new statute that created the office of Crown Prince and codified the succession for the first time.
- Civil ProcedureA 2013 civil transactions code with conventional three-tier appealsThe Civil Transactions Law of 2013 codified obligations and property. Litigation runs through first instance, appeal and the Supreme Court.
- Family LawPersonal Status Law 1997 based on Ibadi and Sunni fiqhThe Personal Status Law of 1997 codifies marriage, divorce, custody and inheritance, drawing on Ibadi jurisprudence alongside Sunni schools.
- Tax LawFifteen per cent corporate tax, five per cent VAT, no income tax yetCorporate income tax is fifteen per cent and VAT five per cent. Oman has legislated a personal income tax to begin in 2028, the first in the Gulf.
- Immigration & NationalitySponsored residence with an investor residency programmeResidence is normally employer-sponsored. The Investor Residency Programme launched in 2021 offers five and ten year self-sponsored residence.
- Criminal LawA 2018 penal code replacing the 1974 statuteRoyal Decree 7 of 2018 issued a new Penal Code, modernising the 1974 code while retaining sharia-derived offences and penalties in some areas.
- Property & LandForeign freehold limited to integrated tourism complexesNon-GCC foreign nationals can own freehold only within Integrated Tourism Complexes. Elsewhere ownership is restricted to Omanis and, more narrowly, GCC nationals.
- Employment & LabourA new Labour Law in 2023 with Omanisation quotasRoyal Decree 53 of 2023 replaced the 2003 Labour Law, adding flexible work models and revising termination and end-of-service provisions.
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