The United Arab Emirates has placed significant emphasis on alternative dispute resolution (ADR) mechanisms, demonstrating a strong commitment to developing and enhancing these methods. This initiative aims to encourage disputing parties to resolve their conflicts amicably, given the advantages of ADR in ensuring the swift resolution of disputes, reducing costs, and minimising animosity between parties. This commitment is evident in the enactment of Federal Law No. 40 of 2023 on Mediation and Conciliation in Civil and Commercial Disputes, which reflects the UAE’s objectives in promoting mediation and conciliation as a means of amicable dispute resolution without the need for judicial intervention.
Under this law, two key mechanisms for amicable dispute resolution have been introduced:
- Mediation – where parties may opt for mediation at their discretion.
- Conciliation – applicable to certain disputes explicitly outlined in Article 27 of the law.
To incentivize parties to resort to these ADR methods, the law has introduced provisions such as the suspension of legal and judicial time limits, as well as the suspension or non-registration of pending court cases, thereby facilitating the success of amicable settlements. Furthermore, the law permits the appointment of private mediators and grants legal enforceability to mediation and conciliation agreements, treating them as executory instruments. This ensures that an agreement reached through mediation or conciliation can be enforced without the need to file a lawsuit if one party fails to comply.
Additionally, parties may recover court fees in full if a complete settlement is reached or a partial refund in the case of a partial settlement. Several other incentives have also been incorporated into the law to encourage parties to opt for mediation and conciliation as a preferred means of dispute resolution.
Mediation and Conciliation at Al Midfa & Associates
At Al Midfa & Associates, amicable dispute resolution remains at the core of our practice. It is one of the primary approaches we adopt to achieve our clients’ objectives—always with their consent, participation, and supervision. Our firm proactively engages with the opposing party or their legal representative to establish channels for amicable communication, facilitating the exchange of viewpoints and bringing them closer to an amicable resolution before initiating litigation or during court proceedings.
It is our firm’s experience that a substantial number of disputes are successfully resolved amicably, whether before or during litigation or even after a judgment has been rendered, sometimes contrary to the judgment itself. In numerous cases, we have observed a genuine willingness from our clients and their opponents to pursue amicable settlements due to their significant benefits—including time and cost savings, reduced litigation expenses, and the preservation of cordial relationships between parties. Ultimately, such resolutions benefit not only the disputing parties but also the judicial system by reducing the number of cases before the courts—aligning with the overarching goal of any efficient legal system.
If you have a dispute and wish to explore alternative dispute resolutions, please contact us here.