Mediation

Definition

A voluntary, non-binding dispute resolution process where an independent mediator facilitates negotiation between the parties to help them reach a mutually acceptable settlement. Unlike arbitration, the mediator does not impose a decision — the parties retain control of the outcome. Mediation is increasingly promoted in the GCC: the UAE introduced mandatory mediation for certain commercial disputes through Federal Decree-Law No. 40 of 2023 establishing the UAE Mediation Centre. DIFC Courts have had a court-annexed mediation programme since 2009. Mediation is attractive for its speed (typically days or weeks vs. months/years for arbitration), lower cost, confidentiality, and preservation of commercial relationships.