TRW & Co · Disputes and settlement
Mediation and Settlement in the UAE
Mediation in the UAE can now produce settlements enforceable like court judgments. Federal Law No. 6 of 2021 covers court-referred and private mediation; Dubai's conciliation centre was reformed in 2025; and the DIFC Courts have a mediation centre. The UAE has also approved accession to the Singapore Convention, but only for parties who opt in.
Key pointA Dubai conciliation agreement with the executory formula can be challenged only for fraud or deception within five business days, so the drafting at the table is effectively final.
At a glance
Settlements become enforceable
Under the federal law, a mediated settlement affirmed by the court is a writ of execution with the same probative force as a judgment.
Three-month window
Federal mediation may not exceed three months from the mediator's appointment or acceptance, renewable once for a similar period.
Dubai reforms in 2025
Dubai Law No. 9 of 2025 updated the Centre for Amicable Settlement of Disputes at Dubai Courts and tightened challenges to conciliation agreements.
DIFC mediation centre
Dubai Law No. 2 of 2025 on the DIFC Courts established a mediation centre for civil, commercial and labour disputes.
Singapore Convention opt-in
The UAE approved accession in June 2026 with reservations: it excludes government parties and applies only where parties expressly opt in.
Swipe or scroll →
Mediation in the UAE: the short answer
As of October 2026. Mediation in the UAE is now a mainstream route to settling commercial disputes, not an informal courtesy before litigation. Onshore, Federal Law No. 6 of 2021 on Mediation for the Settlement of Civil and Commercial Disputes lets courts refer a case to mediation at any stage and lets parties mediate without going to court at all. A settlement affirmed by the court becomes a writ of execution with the same probative force as a judgment. Dubai runs its own court-annexed conciliation system, updated in 2025, and the DIFC Courts have a dedicated mediation centre.
The cross-border position is also changing. In June 2026 the UAE approved its accession to the Singapore Convention on Mediation, which will allow international mediated settlements to be enforced directly once it enters into force for the UAE, but only where the parties have expressly opted in.
The practical result: a well-run mediation can produce an enforceable outcome in weeks rather than years, provided the settlement is documented and approved through the right channel.
The legal framework
- Federal Mediation Law. Federal Law No. 6 of 2021 on Mediation for the Settlement of Civil and Commercial Disputes covers judicial mediation (court-referred) and extrajudicial mediation (agreed by the parties without proceedings). It applies to mediation administered in the UAE, and to international mediation abroad where the parties choose it. Mediation is possible for any dispute capable of settlement, provided this does not conflict with law, public order or morals.
- Dubai conciliation law. Dubai Law No. 9 of 2025 amended Dubai Law No. 18 of 2021 on the conciliation framework in Dubai. It governs the Centre for Amicable Settlement of Disputes (CASD) at Dubai Courts, the disputes that must or may go there, and how conciliation agreements become enforceable.
- DIFC. Dubai Law No. 2 of 2025 on the DIFC Courts established a mediation centre for civil, commercial and labour disputes within the DIFC Courts system and gives mediation a more prominent role.
- ADGM and other emirates. The ADGM Courts and the courts of the other emirates, including the Abu Dhabi Judicial Department, run their own settlement and conciliation arrangements, which should be checked case by case.
- Singapore Convention. Federal Decree-Law No. 85 of 2026 approved the UAE's accession to the UN Convention on International Settlement Agreements Resulting from Mediation, with reservations excluding settlements involving government entities and limiting it to cases where the parties opt in.
Judicial, court-annexed and private mediation compared
| Route | How it starts | Outcome if settled | Best for |
|---|---|---|---|
| Judicial mediation (federal law) | Court refers a pending case, on the parties' proposal or under a mediation agreement | Court affirms the settlement; it becomes a writ of execution | Cases already in onshore courts |
| Extrajudicial mediation (federal law) | Parties apply to a mediation centre under a mediation agreement | Settlement can be affirmed and enforced through the court | Pre-action disputes where both sides want a binding result |
| Dubai CASD conciliation | Referral by Dubai Courts, parties' agreement, or mandatory categories | Conciliation agreement with the executory formula has the force of a writ of execution | Disputes within Dubai Courts' jurisdiction |
| DIFC Courts mediation | Agreement or court encouragement in DIFC proceedings | Settlement recorded and enforced within the DIFC system | DIFC-connected commercial disputes |
| Private ad hoc mediation | Contract clause or later agreement, with a mediator of the parties' choice | Binding as a contract; enforcement needs a further step unless formalised | Cross-border and confidential commercial disputes |
Key features of the federal law
- Time limits. Judicial mediation may not exceed three months from notifying the mediator, renewable once for a similar period by the court with all parties' approval. Extrajudicial mediation has the same three-month cap, renewable once.
- Limitation and court deadlines. Legal and judicial time limits are interrupted once the court's referral decision is issued and resume when the mediation ends.
- Confidentiality. Information and concessions made in mediation cannot be used in court without the parties' consent; the settlement agreement itself is not confidential for enforcement purposes.
- Mediator independence. A mediator may not later act as arbitrator or expert against a party in the same dispute.
- Fees. A privately appointed mediator's fees are agreed with the parties but may not exceed 5% of the value of the dispute.
Dubai's 2025 conciliation reforms
Dubai Law No. 9 of 2025, published in July 2025, replaced ten articles of the 2021 conciliation law. Disputes registered in the Dubai Courts' electronic system and sent to the CASD are handled by a conciliator under a supervising judge. Categories that go to the CASD include disputes referred by the President of Dubai Courts, disputes the parties agree to refer, and cases referred under a prior agreement between the litigants. Personal status disputes go to the family guidance and reconciliation committee.
Several categories are excluded, including interim and urgent matters, disputes outside Dubai Courts' jurisdiction and disputes where conciliation is prohibited. The CASD may appoint experts, with the decision setting the scope, timetable, fees and who pays. Where a claim requires prior conciliation, Dubai Courts apply criteria for accepting the lawsuit afterwards, so skipping the CASD stage can delay the claim rather than speed it up.
A Dubai conciliation agreement approved by the conciliator and carrying the executory formula has the force of a writ of execution. It can be challenged only for fraud or deception, within five business days of approval, and the judge's ruling on that challenge is final. Read every term before signing: there is very little room to revisit it.
When mediation in the UAE is the right choice
Mediation in the UAE works best where the parties have a continuing relationship, where the dispute turns on commercial judgement rather than a single point of law, or where both sides face real cost and delay in court or arbitration. Typical examples include shareholder and co-founder disputes, construction variations and delay claims, distribution and agency terminations, and employment disputes involving senior executives. See our guide to shareholder and co-founder disputes for one of the most common settings.
It is less suitable where one party needs a binding precedent, where urgent injunctive relief is the priority, or where there is evidence of fraud that requires disclosure orders and court scrutiny. Even then, mediation in the UAE can run in parallel with proceedings: a court can refer a pending case to mediation at any stage, and parties can seek interim relief first and mediate afterwards.
Timing matters. Mediating too early, before the key documents and the quantum are understood, often leads to a stalemate. Mediating too late, after heavy legal costs, reduces the room to compromise. A good moment is usually after an exchange of position papers and core documents, and before expert reports and full disclosure.
How a commercial mediation works
- Check the contract. Look for a mediation or tiered dispute resolution clause: it may require mediation before arbitration or litigation, set a timetable and name an institution.
- Choose the route. Decide between court-annexed mediation, a mediation centre or a private mediator, considering enforceability, confidentiality and where any later proceedings would be heard.
- Appoint the mediator. Agree a mediator with relevant sector experience and language skills, or accept the court's or centre's appointment; object promptly if there is a conflict.
- Prepare a position paper. Summarise the facts, key documents, legal position, quantum and what a realistic settlement looks like. Identify who has authority to settle.
- Hold the sessions. Joint and private sessions explore interests, risks and options. Keep the three-month statutory window in mind if the federal law applies.
- Document the settlement. Draft precise terms: amounts, dates, security, releases, confidentiality, costs and what happens on default. Ambiguity is the main cause of later disputes.
- Make it enforceable. Have the settlement affirmed by the court or approved by the conciliator, or formalised as a consent award or judgment, so it can be enforced without a new claim.
If mediation fails, the dispute returns to court or moves to arbitration. See our guides to commercial litigation in the onshore courts and arbitration in the UAE.
Drafting mediation clauses that work
Many disputes about mediation in the UAE are really disputes about the clause. A tiered clause that says the parties "shall attempt to resolve" a dispute amicably before arbitration can be argued to be a condition precedent, delaying the main proceedings. A clause that is too vague may be treated as unenforceable.
- Name the institution or the appointment method for the mediator.
- Set a clear trigger, such as a written notice of dispute, and a fixed period after which either party may start proceedings.
- Preserve the right to seek urgent interim relief from a court at any time.
- State the language, seat or location of the mediation and who bears the costs.
- For international contracts, record whether the parties opt in to the Singapore Convention, since the UAE applies it only where the parties have agreed.
For contracts in the DIFC or with a DIFC link, consider the DIFC Courts' mediation offering and the courts' jurisdiction; see DIFC Courts jurisdiction and enforcement.
Illustrative scenario
Illustrative only; generic parties. A Dubai mainland contractor and a free zone developer disagree over variations and delay on a fit-out project worth several million dirhams. The contract provides for mediation before arbitration. The developer has stopped paying and the contractor is considering a claim.
Both sides agree to mediate with an engineer-mediator experienced in construction disputes. Each prepares a short position paper and a quantum summary. After two sessions they agree a payment schedule, a release of retention against a defects warranty, and mutual releases. Because the developer's finances are uncertain, the contractor insists that the settlement be affirmed so that it is enforceable as a writ of execution. Had mediation failed, the parties would have proceeded to arbitration under the contract. For more on these disputes, see construction and energy disputes.
Risks and common mistakes
Signing a settlement that is not enforceable
A private settlement signed outside the statutory process is binding as a contract, but if the other side does not pay you may have to sue on it, which defeats much of the purpose. Under the federal law, a settlement affirmed by the court becomes a writ of execution; in Dubai, a conciliation agreement with the executory formula has the same force. For cross-border deals, a consent award in arbitration or a court-recorded settlement may be better. Decide the enforcement route before the final session, not after.
Ignoring time limits
Mediation under the federal law has a three-month limit, renewable once. Limitation periods are interrupted by a court referral, but a purely private mediation may not stop time running unless the parties agree a standstill. Diary limitation dates and, where necessary, sign a standstill agreement before starting. Our guide to limitation periods in the UAE explains the deadlines.
Sending people without authority to settle
Mediations fail when the people in the room cannot agree a deal. Senior decision-makers with genuine authority, and access to finance and legal advisers, should attend. For group companies and government-related entities, confirm in advance what approvals are needed for a settlement and how quickly they can be obtained.
Loose drafting of the settlement terms
Vague phrases such as "full and final settlement of all claims" without specifying which claims, which parties and which projects lead to new disputes. So does a payment schedule without a default mechanism. Draft the settlement as carefully as the original contract: define the released claims, payment dates, security, interest on late payment, confidentiality and the forum for any enforcement.
Cross-border settlements and the Singapore Convention
For international disputes, the UAE's accession to the Singapore Convention is significant. Once in force for the UAE, which happens six months after the instrument of accession is deposited with the United Nations, a mediated settlement of an international commercial dispute can be enforced in the UAE and other contracting states without relitigating the merits, subject to the limited refusal grounds in the Convention. Because of the UAE's opt-in reservation, the settlement agreement must record that the parties agree to the Convention applying.
Counterparties from Saudi Arabia, Singapore, China and India will look for the same clarity. Where the other side's home country is not a party to the Convention, consider recording the settlement as a consent award or a court judgment that can be enforced under other treaties; see enforcing foreign judgments in the UAE.
Checklist before mediation in the UAE
- Read the dispute resolution clause and any condition-precedent wording.
- Diary limitation periods and agree a standstill if needed.
- Choose between court-annexed, centre-administered and private mediation.
- Prepare a position paper, key documents and a realistic settlement range.
- Confirm who has authority to settle and what approvals are needed.
- Decide in advance how the settlement will be made enforceable.
- For international parties, record any opt-in to the Singapore Convention.
TRW & Co prepares clients for mediation in the UAE, advises on strategy and settlement terms, and coordinates enforcement. Where representation before the onshore courts or the DIFC or ADGM Courts is required, we work alongside locally licensed advocates and registered practitioners. To discuss a dispute, contact our Dubai team at info@trw.co or +971 58 942 1012.
Frequently asked questions
01Is a mediated settlement legally binding in the UAE?
Yes. Any signed settlement is binding as a contract. Under Federal Law No. 6 of 2021, a settlement reached in judicial or extrajudicial mediation and affirmed by the court becomes a writ of execution with the same probative force as a court judgment, so it can be enforced without a new lawsuit. In Dubai, a conciliation agreement approved by the conciliator at the Centre for Amicable Settlement of Disputes and carrying the executory formula has the force of a writ of execution. Private settlements outside these routes may need a further step to enforce.
02How long does mediation take in the UAE?
Under the federal law, mediation may not exceed three months, counted from notification of the mediator in court-referred cases or from the mediator's acceptance in extrajudicial cases. The period can be renewed once for a similar duration. Many commercial mediations settle in one or two sessions once both sides have prepared properly. Private mediation outside the statute follows whatever timetable the parties agree, which is why a fixed period in the contract clause is helpful.
03Is mediation mandatory before going to court in Dubai?
For some disputes. Under Dubai's conciliation law as amended in 2025, certain categories go to the Centre for Amicable Settlement of Disputes, including disputes referred by the President of Dubai Courts, disputes the parties agree to refer, and cases referred under a prior agreement between the litigants. Personal status matters go to the family guidance committee. Interim and urgent matters and several other categories are excluded. Check the current categories with Dubai Courts before filing a claim.
04Does the Singapore Convention apply in the UAE?
The UAE approved its accession by Federal Decree-Law No. 85 of 2026 in June 2026. The Convention enters into force for the UAE six months after the instrument of accession is deposited with the United Nations. The UAE made both permitted reservations: it does not apply to settlements involving the government or government agencies, and it applies only where the parties have expressly agreed that it will. International parties should therefore include an opt-in clause in their settlement agreements.
05Can information from a failed mediation be used in court?
Generally no. Under the federal law, mediation is confidential, and information submitted or concessions made during mediation cannot be relied on before a court without the parties' consent. The mediator also may not act as an arbitrator or expert against a party in the same dispute. The settlement agreement itself is not confidential for enforcement purposes. If confidentiality is critical, set out the rules in a mediation agreement signed before the sessions begin.
06What does a mediator cost in the UAE?
Court-annexed and centre-based mediation involves fees set by the court or centre, paid before the mediation starts. Where the parties appoint their own mediator under the federal law, the fees are agreed with the mediator but may not exceed 5% of the value of the dispute. Private mediators outside the statutory framework charge by agreement, usually daily or hourly. Compare the cost with the time and expense of litigation or arbitration when deciding whether to mediate.
Sources and official materials
- Federal Law No. 6 of 2021 on Mediation for the Settlement of Civil and Commercial Disputes — Judicial and extrajudicial mediation, enforcement of settlements
- Dubai Courts — Centre for Amicable Settlement of Disputes
- DIFC Courts — DIFC Courts mediation and proceedings
- Abu Dhabi Judicial Department — Abu Dhabi courts and settlement services
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
