Arbitration and mediation in the UAE are methods used to resolve disputes without litigation, allowing the parties to settle their issues without court intervention. However, each method has its own conditions, advantages, and procedures. In this article, we will provide you with the key information you need to know about arbitration and mediation services.
Arbitration in the UAE
Arbitration is a process for resolving legal disputes between two or more parties as an alternative to litigation. This process is conducted by an arbitrator or a panel of arbitrators who make a decision in the dispute. Arbitration consists of a set of conditions and procedures, which we will outline now:
Conditions of Arbitration:
The main conditions for arbitration include:
- Agreement to Arbitrate: The parties involved in the contractual relationship must agree to arbitration.
- Arbitrability: The issue must be subject to arbitration.
- Capacity: The agreement to arbitrate can only be concluded by a natural person with the legal capacity to manage their rights.
- Independent Arbitration Panel: There must be an independent arbitration panel with the expertise and ability to adjudicate the legal dispute.
- Additionally, the matter to be arbitrated must be capable of being resolved through conciliation for it to be acceptable for arbitration.
Advantages of Arbitration:
Arbitration is a highly advantageous solution for the contracting parties due to several benefits:
- Speed: Judgments are issued faster compared to litigation procedures.
- Confidentiality: The entire process is kept confidential and under complete control.
- Finality: One of the main attractions for individuals, especially commercial companies, is that the judgment is final without the need for prolonged waiting periods due to appeals and objections.
Arbitration Steps:
Arbitration begins with the occurrence of a dispute that the contracting parties agree to resolve through arbitration. This is followed by the appointment of the arbitrator or panel of arbitrators. The parties then present the full details of the case and the available evidence for review. The arbitrators conduct sufficient arbitration sessions and then issue a judgment based on justice and equality among all parties.
Arbitration Centers in the UAE:
The UAE is home to some of the best arbitration centers in the region and the world. Among the most renowned centers are:
- Dubai International Arbitration Centre (DIAC)
- Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC)
- Fujairah International Arbitration Centre (FIAC)
Mediation in the UAE
Mediation is another means of resolving disputes without resorting to the judicial system. It involves appointing a conciliator to mediate between the disputing parties and help them reach a suitable solution outside of the courts.
the Types of Disputes Eligible for Conciliation, including disputes where the value does not exceed five million UAE Dirhams and disputes involving parties related by marriage or kinship up to the fourth degree, regardless of the monetary value of the conflict. Additionally, parties can agree to resolve their civil or commercial disputes valued over five million Dirhams through conciliation either before or during the initiation of legal proceedings.
Conditions of Mediation:
To resolve disputes through Mediation, the following conditions must be met:
Mutual Agreement: The parties must initially agree to conciliation.
Mediation: The case must be inherently capable of being resolved through Mediation. Certain legal disputes cannot be settled this way, such as cases involving the government, rental disputes handled by special rental dispute committees, labor disputes, personal status cases, urgent and temporary cases, and any other cases specified by law.
Advantages of Mediation:
Similar to arbitration, conciliation offers several key benefits:
Speed: It provides a faster resolution compared to lengthy litigation procedures.
Cost-Efficiency: It reduces costs for all parties throughout the duration of the dispute.
Amicable Resolution: It allows for a friendly settlement, preserving relationships, such as family ties, by avoiding court proceedings and ensuring confidentiality and satisfaction for all parties involved.
Mediation Steps:
The Mediation process begins with identifying the participating parties and verifying the legal feasibility of this resolution method for the dispute. Then, a qualified conciliator is appointed to initiate the resolution efforts, conduct and manage sessions involving the disputing parties to discuss possible solutions, and eventually draft a Mediation agreement based on the reached consensus.
Role of the Mediator:
The Mediator plays a crucial and fundamental role in resolving the dispute through Mediation. Their importance lies in bringing viewpoints closer, presenting solutions, and maintaining the parties’ willingness for an amicable resolution, ensuring the desired and satisfactory outcomes for all involved.
Comparison Between Arbitration And Mediation Services in the UAE
Similarities:
Both Arbitration And Mediation are considered alternative means of dispute resolution outside the judicial system. They share advantages such as expediting the resolution process, avoiding lengthy procedures, and maintaining better relationships compared to those strained by prolonged court cases.
Differences:
The primary difference lies in the outcome and formality of each method. Arbitration results in a binding decision issued by a panel of arbitrators, whereas Mediation involves the parties agreeing on a mutually acceptable solution and signing an agreement to resolve their dispute. Arbitration is generally more formal and tends to be more costly compared to Mediation.
Tips for Choosing a Dispute Resolution Method
Choosing the method for resolving a dispute is a strategic decision for all parties involved in the legal conflict. The choice of method often significantly affects the outcome itself:
- It is recommended to opt for arbitration in contractual disputes to save time, effort, and money compared to resorting to the courts. Arbitration helps to alleviate the intensity of the conflict by delegating the decision to a panel whose judgment is accepted by the contracting parties. It provides a swift resolution with confidential procedures that do not harm the reputation of companies and individuals.
- It is advisable to choose Mediation for legal disputes that arise directly among family members to reach amicable solutions and agree upon them without going to court. This method is also suitable for any dispute that can be legally resolved through Mediation. It’s better to avoid prolonged disputes and their associated costs by sitting down for discussion and negotiation to find the most appropriate solutions.
We remind you that you can contact us directly through the WhatsApp button at the bottom of the screen to receive legal advice on the best way to resolve your legal disputes, drawing on the extensive experience of our lawyers in finding solutions and offer arbitration and mediation Services in UAE.
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Senior Legal Consultant with extensive experience in providing specialized legal advice in various fields within the United Arab Emirates. He specializes in commercial, criminal and personal status law cases, and works on representing individuals and companies in complex cases and legal disputes.