Arbitration and Mediation

Arbitration and mediation are both forms of Alternative Dispute Resolution (ADR), but they differ in approach and outcome. Arbitration involves an arbitrator or panel of arbitrators who listen to both parties and make a binding decision, similar to a court judgment. Mediation, on the other hand, is a facilitated negotiation process where a mediator helps the parties reach a mutually acceptable agreement, but the outcome is not binding unless both parties agree to it. Arbitration is often chosen for more complex disputes, especially in commercial contexts, while mediation is preferred for its confidentiality and potential to preserve relationships.

The UAE’s new mediation law, enacted in 2023, introduces a comprehensive framework for both judicial and non-judicial mediation. Key features include the establishment of mediation centers, the ability of courts to refer cases to mediation, and strict confidentiality rules governing the mediation process. Mediators must meet specific accreditation requirements, and mediation agreements can be enforced similarly to court judgments. The law also supports the use of eMediation platforms, which facilitate online dispute resolution.

An arbitration agreement in the UAE must be in writing and can be part of a broader contract or a standalone agreement. The agreement should specify the scope of disputes covered, the arbitration rules to be applied, and the seat of arbitration. It must be signed by parties with the authority to enter into such agreements. The UAE’s Arbitration Law aligns with international standards, providing a detailed legal framework that supports the enforcement of both domestic and international arbitration awards.