In recent years, the United Arab Emirates (UAE) has made significant strides in Alternative Dispute Resolution (ADR) methods. In the past, ADR, particularly mediation, was not a commonly used method in this region. Commercial disputes were generally resolved through arbitration, while mediation was often overlooked. However, recently, the importance of ADR has become more widely recognized, and significant developments have occurred in this area.
Past: Arbitration and Majlis
In the past, arbitration (the resolution of disputes through binding decisions by a neutral arbitration panel) was typically the preferred method of resolving disputes in the UAE. Institutions such as the ICC (International Chamber of Commerce) and LCIA (London Court of International Arbitration) were prominent in resolving international trade disputes. However, for local and community disputes, the UAE’s cultural tradition of Majlis (traditional meetings where community leaders would negotiate and resolve disputes) played an important role. Majlis, aimed at maintaining relationships and ensuring peace between parties, formed the cultural foundation of the modern ADR system in the UAE.
Present: The Rise of Mediation
In recent years, mediation (a method where parties work towards finding their own solutions with the help of a neutral third party) has rapidly gained traction in the UAE. With the influence of international agreements like the Singapore Mediation Convention, mediation is now accepted as a reliable dispute resolution method. Institutions like the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC) have supported this method through new regulations and practices that promote mediation. Additionally, our founder, Ferda Canözer Paksoy, has been invited as the only mediator from our country to participate in high-level international mediation panels. The Federal Law No. 6 of 2021 and the Federal Decree Law No. 40 of 2023 have strengthened the legal basis for mediation processes, and today, mediation has become mandatory for small-scale commercial disputes.
Future: The UAE’s Vision for ADR
In the future, ADR in the UAE is expected to be increasingly used, particularly in family businesses (companies managed by family members) and investor-state disputes (disputes between investors and the state). Moreover, in the culturally relationship-driven Middle East, the influence of the Majlis tradition will continue to be felt in mediation processes. Alongside modern methods such as mediation and arbitration, traditional relationship-oriented and negotiation-based methods like Majlis will continue to have a place in the region’s ADR culture. Additionally, the need for expert mediators who understand the local language and cultural sensitivities is clearly expected to rise.
The growing trend of ADR in the UAE, combined with the development of systems that meet global standards for its effective use, will play an important role in positioning the country as a stronger and more reliable hub for dispute resolution, both in local and international trade. Experts agree that while Dubai is already positioned as an international arbitration center, Abu Dhabi is expected to follow this path in ADR as well.
*Majlis: In the Arab world, a Majlis refers to a traditional council or meeting. It is known as a forum where community leaders come together to negotiate and resolve disputes. Majlis serves as an important cultural dispute resolution mechanism aimed at maintaining relationships and ensuring peace, and it continues to play a significant role in countries like the UAE from past to present.
