In-Brief:
- On 12 October 2026, the Abu Dhabi Judicial Department (“ADJD”) announced that sixty-one mediators for civil and commercial disputes had taken the legal oath, marking the commencement of their duties.
- The applicable framework includes Federal Decree-Law No. (40) of 2023 on Mediation and Conciliation in Civil and Commercial Disputes (hereinafter referred to as the “Law”) and the Chairman of the ADJD’s Decision No. (39) of 2023 concerning the Regulation Governing the Operation of Mediation and Conciliation Centres in Civil and Commercial Disputes.
- The expansion reflects continued efforts to ensure more efficient use of the courts’ time and parties’ resources, while providing an opportunity to reach an agreed outcome and preserve commercial relationships.
Over the past year, the Abu Dhabi Judicial Department has taken significant strides in expanding access to alternative dispute resolution through accredited mediators. The Chairman of the ADJD’s Decisions Nos. 48 and 49 of 2025, 10 of 2026 and, most recently, 50 of 2026 collectively confirm that 171 individuals are registered as mediators. The swearing-in of sixty-one mediators, announced on 12 October 2026, marks a further step in this development.
The Department’s expansion of mediation supports a broader commitment to efficient justice and the preservation of commercial relationships. However, given the nature of disputes and the urgency that often prompts legal action, some claimants may regard the conciliation centre as another hurdle to filing proceedings. Nevertheless, if approached constructively, the process can offer an opportunity to achieve a favourable commercial outcome before committing further time and resources to litigation.
It is useful here to distinguish between mediation and conciliation under the Law. Mediation is a voluntary process, whereas conciliation is a mandatory preliminary step for specified categories of disputes. Neither process requires parties to accept a settlement they do not agree to.
Under Article 27, and subject to the exclusions in Article 28, mandatory conciliation applies to civil and commercial disputes valued at no more than AED 5 million. It also applies to civil and commercial disputes between spouses or relatives up to the fourth degree, regardless of value. Outside that latter category, parties to disputes exceeding AED 5 million may agree to conciliation before or during court proceedings.
Further, Article 28 excludes the following from the Centre’s conciliation jurisdiction:
- Urgent and interim orders and proceedings;
- Cases to which the Government is a party;
- Rental cases heard by specialised rental dispute committees;
- Labour cases;
- Personal status cases; and
- Other cases assigned to a centre, committee, or other body with similar jurisdiction.
Therefore, a sizable number of disputes submitted before the Abu Dhabi Court of First Instance can expect to engage in conciliation. Resolving disputes through mediation or conciliation can offer both parties several benefits, including the potential to reduce the overall cost of resolving the dispute. By comparison, the basic filing fee for a quantified civil or commercial claim before the Abu Dhabi Court of First Instance is generally 5% of the claim value, subject to a minimum of AED 100 and a maximum of AED 40,000 with other possible costs of litigation such as translation and expert fees. Mediation may itself involve fees and expenses, but an early settlement can limit the further costs incurred as proceedings develop.
Other favourable aspects include greater control over the outcome, confidentiality, and the preservation of relations between business partners. Parties can agree to practical terms that reflect their commercial priorities, including payment arrangements or a compromise between the parties which may make other forms of equitable remedies or performance possible. The Law also protects the confidentiality of the process, subject to specified exceptions, including those relating to the settlement agreement and documents needed for its enforcement.
A properly documented and ratified settlement can also provide an enforceable outcome. Article 23 addresses ratification of settlements reached through judicial mediation, while Article 38 provides for approval of conciliation settlement records by the supervising judge and gives them the force of an executory instrument.
However, reaching agreement alone does not guarantee straightforward enforcement. Settlement terms should clearly identify the parties’ obligations, payment deadlines and the consequences of non-compliance, and the applicable signature and ratification requirements should be completed.
It is also important for litigants to note that a subsequent change of mind does not necessarily give a party an unrestricted right to undo the settlement. Article 24 provides specified grounds for challenging a mediated settlement, including issues concerning capacity, validity and procedural notification which must be established to nullify a ratified settlement agreement. Article 25 confirms that, subject to those grounds, a ratified mediated settlement binds the parties and prevents the same dispute from being brought before the courts again.
Conclusion:
The expansion of Abu Dhabi’s pool of accredited mediators represents an important development in the Emirate’s approach to resolving civil and commercial disputes efficiently, confidentially and having regard to the parties’ commercial relationships.
Considering this development, businesses should consider opportunities for mediation at an early stage of a dispute and approach any required conciliation process as an opportunity to reach an acceptable resolution. Careful preparation and clearly drafted settlement terms can help turn an agreement in principle into a practical and enforceable outcome.
Hadef & Partners’ Dispute Resolution team advises on civil and commercial disputes, settlement negotiations, and the enforcement of settlement agreements. If you would like to discuss how mediation or conciliation may assist in resolving a current or potential dispute, please contact Mohamed Eissa at m.eissa@hadefpartners.com, or your usual Hadef & Partners contact.