Mediation in UAE is a process that allows disputing parties to shift their focus from legal intricacies to the practical aspects of their disagreement. It applies to most disputed matters, with just a few exceptions. In recent times, there has been a remarkable surge in the adoption of mediation. This approach is increasingly embraced not only in common law jurisdictions but also, more notably, in the civil law system of the UAE.

Although many in our jurisdiction are aware of and investigate the advantages of Alternative Dispute Resolution (“ADR”), mediation’s benefits are occasionally disregarded. This error may have resulted from a lack of process understanding, which can breed mistrust. Even though the UAE is making progress in investigating and applying the mediation process, it takes time for people’s perceptions to change and accept a settlement idea that they may not have previously given much thought to. We at Khairallah Law Firm actively participate in promoting mediation as a means of conflict resolution in the United Arab Emirates.

Mediation in UAE: A Path to Resolution

First, the Law specifies what needs to be included in a mediation agreement’s drafting. Mediation agreements need to be signed by a company representative or by people who are willing to participate in mediation, just like other contracts. The mediation in law agreement is nullified if this condition is not met. The field of mediation law highlights how crucial it is to carry out mediation agreements correctly to guarantee their efficacy and legality.

The mediation agreement must include the following provisions:

• It should be very clear what the disagreement is about.
• It must name a mediator or specify how the mediator will be chosen.
• The language used in the mediation should be specified in the agreement.

Arabic is the main language in the legal system in the United Arab Emirates, as opposed to English, which is the language of the DIFC and ADGM. The parties shall make sure that all documents are translated into Arabic if the mediation is held in a language other than Arabic.

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Mediators

Mediators can be appointed either by parties in the Mediation Agreement, known as a Special Mediator, or by a Judge from a List of Mediators, who are registered and preapproved with the Centre. If a party objects to the Court-appointed mediator, the Court will designate an alternate.

To ensure fair and due process for parties, mediators must adhere to strict impartiality rules and are prohibited from:

• Acting as arbitrator or expert, or accepting a power of attorney in litigation against any party involved in the mediation, even after termination of the mediation.
• Providing testimony against a party to the mediation regarding the subject matter of the dispute, except in cases related to a crime.
• Serving as a mediator when any party is a spouse or relative up to the fourth degree.

Administrative sanctions and penalties will be imposed if a mediator breaches their obligations under the Law.

Termination of Mediation in UAE: Understanding the Conclusion of Mediation Processes

Mediator appointments may be terminated in any of the following instances, amongst others:

• So a Settlement Agreement is reached.
• The parties and mediator mutually agree to terminate before resolving.
• If any party decides not to continue with the mediation.
• If the mediation deadline expires.
  

Settlement is not reached within the stipulated duration of time in the Court’s referral decision, the mediator must submit a report explaining the reason for the failure to settle, and the case will then return to the Court. Meditation in court procedures underscores the importance of timely settlement efforts and reporting in unresolved cases.

Once the parties settle, the mediator will submit a report to the Court, along with the signed Settlement Agreement, for ratification. Subsequently, the Court will issue a report regarding the complete or partial resolution of the dispute, and the Settlement Agreement will be treated as a writ of execution. This agreement, binding and irrevocable for the parties, holds equal authenticity to judicial judgments.

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Centers for Mediation

Both the licensing of foreign mediation centers and the creation of independent mediation in UAE are permitted by law. A Cabinet Decision will be made at a later date to disclose additional information about the licensing requirements and operational procedures of the centers. In addition, the relevant Minister will release a Code of Business Conduct for Mediators.

Without Prejudice Communications in UAE Mediation

Previously, mediations in Dubai as a whole faced an issue with the lack of protection for ‘without prejudice communications’. However, the Law has rectified this problem, ensuring that mediations are conducted confidentially. Any information provided, along with agreements or concessions made by the parties during the mediation process, cannot be used in any Court proceedings.

Information may only be disclosed with the approval of the involved parties. However, the rules on confidentiality do not extend to the provisions of the Settlement Agreement, which must ultimately be enforceable through a Court process. This aspect is crucial in the realm of mediation business law.

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FAQ

1- What are the three rules for the mediation?

1: Decision makers must actively participate.

2: Ensure that important documents are physically present.

3: Be accurate, but within reasonable limits.

2- What is the mediation of the law?

In mediation, an impartial third party, referred to as a mediator, steps in to assist the parties in reaching a mutually agreeable resolution to their disagreements. The mediator meets with the parties in an impartial setting to facilitate dialogue regarding the conflict and look into potential resolutions.

3- What are ICC mediation rules?

With the help of an impartial facilitator, mediation is a flexible process intended to produce a negotiated settlement under the ICC Mediation Rules.

4- What is the time limit for mediation?

By this Act, mediation must be completed within one hundred and twenty days of the date of the first appearance before the mediator, regardless of any provisions in other laws that are currently in effect.

 

Conclusion

The other mediation problems that we are the best at solving include but are not limited to; At Khairallah Law Firm, we shall also help in the UAE mediation to ensure our paperwork is right with our lawyer in Dubai at your service. Feel free to call us for any inquiries regarding the services we provide.