IFLR 1000
The Guide to the World's Leading Financial Law Firms

Oman, like most of the smaller gulf jurisdictions, has felt the faint tremors and aftershocks of the global financial turmoil without being caught in its full fury. This country has to thank its size and the more sedate pace of its economic growth, which has allowed it to avoid the boom town issues seen in Dubai and elsewhere....

Oman, like most of the smaller gulf jurisdictions, has felt the faint tremors and aftershocks of the global financial turmoil without being caught in its full fury. This country has to thank its size and the more sedate pace of its economic growth, which has allowed it to avoid the boom town issues seen in Dubai and elsewhere. "Oman didn't have the heat in the economy of the other states and so was less affected," says one partner.

One of the clearest indicators of this contrast is in the real-estate sector, whose collapse in the last few years has crippled the advantage held by the more developed states. "Oman wasn't hit as badly as other countries in the gulf because certain sectors (real estate) are not as well developed," explains one partner.

Where impact has been felt most keenly is in the capital markets. "The last quarter of last year it was impacting," says one partner, "we have not seen any IPOs; activity has slowed down." In M&A, deals are still being done with interest and investment coming from overseas, however the level of work is still down compared to previous years.

Project finance remains a key source of work for most firms in the market as the country continues to pursue its twin goals of improved infrastructure and economic diversification. Significant projects include new airports in Duqm and Muskat and what will be the world's largest dry docks in Duqm. Promisingly the government is still pursuing these developments with no sign of slowdown.

A development which is likely to increase work across all areas in the next few years is the signing of a new trade agreement with the USA which will allow US companies to operate in Oman without the need to link up with a local partner. "There's a real keenness to get US investment into the country," says one partner. This should lead to a greater number of mandates for firms as US companies begin to act with more freedom.

Another interesting development which may be seen more clearly a few years down the line is the increasing number of lawyers trained in Oman itself. "They (law firms) are moving to reinforce the Oman-isation of the market," says one partner, "today the balance is far more to employ more Omani lawyers." Another partner explains: "In the next ten years they'll [law firms] be facing a far greater emphasis from clients who will expect lawyers to speak Arabic. Arabic is the expected language in the gulf."