Empowering Mediators in the MENA Region

Did you know that Walmart Inc. (USA), Volkswagen AG (Germany), Tata Group (India), LG Electronics Inc., Samsung Group (Korea) as many as other well-known companies are familybusinesses [1]? The biggest region for the share of family businesses in the world is Europe, with 43% in the world’s 750 family business ranking. According to “Family Capital”, the most family business countries are the United States and Germany. There is no statistics on the Kyrgyz Republic, but some of the known and successful companies such as “Shoro”, “Imarat Stroi”, “Kulikov”, and “Park Hotel Bishkek” are also family-owned businesses. In Sweden, over 60% of working-age population are occupied in family business. At first sight, family companies are the most sustainable entities, very often involving several generations and thriving for decades. At the same time, a family company is a quite risky enterprise in terms of conflict potential. In accordance with the Corporate Governance Professional Association, the vast majority of family businesses have a very short lifespan and only 5 (!) percent of family companies survive after the transition to the third generation of family owners [2]. The reasons for that are different and include contradicting business views, differing approaches, and unhealthy competition between family members. In some family companies, rivalry may appear simply because of psychological fear of the founder that he could be removed from the business scene by his close owners [3]. During ongoing crisis and unexpected economic, political and social changes, the position of family businesses is even more exacerbated. Corporate policies aimed at sustainability of family companies in fragile context are helpful but do not work for every case. Mediation is one of the anti-fragility mechanisms that is already used and undoubtedly should be utilized further by family business owners in all its three dimensions, including project mediation, deal mediation and mediation of disputes.

There is no better dispute resolution method than one that is applicable, reasonable and fits the nature of a dispute. But for family business disputes, mediation and mediation solely is highly recommended. Family business matters when personal and business relations are intertwined are very sensitive and, in addition to business knowledge, require empathy, creativity and a high level of emotional intelligence. In such cases, litigation may be even harmful. Sometimes disputes between siblings, children and parents, spouses turn into a battle of generations and war of the genders. When a dispute arises, it is challenging for parties to separate personal attitudes and business ones. Future of business is completely dependent on the showdown of personal relationships. Furthermore, the case can be even more complicated if family members are not only founders of the company but also occupy particular positions in it.

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Perhaps, the following recommendations, based on family business mediation experience, will be helpful or at least appear as food for thought for those who are starting or already have been running a family business for some time:

1) Be clear and honest when distributing the roles in the family business, so everybody knows what to expect and for what one is responsible.

2) Observe formalities and documentary requirements. In case of a dispute, gentlemen’s agreement will be a too weak argument to rely on.

3) Include independent directors in the Board of Directors, who are not affiliated neither with the owners nor with management.

4) If you live together with your relatives who are your business partners, make an effort not to discuss business issues at home, making your home place a space for pleasant time together with close ones.

5) Choose a dispute resolution method to be utilized in case of a dispute at the outset. When a dispute is already there and emotions are running high, it is quite difficult to agree on the mutually acceptable remedy method.

6) In case of a dispute, do not forget to ask yourself some very important questions: “What is most valuable and really matters for me?”, “How my decision will influence the relations with my relatives?”, “What will happen to the business itself and employees?” Honest answers may prevent from a short-lived and unwise decision.

7) Whether the disagreement is about business strategies, roles, responsibilities or some other related things within a family company, it is reasonable to apply for mediation at early stages. Do not wait until a disaster.

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Why to utilize mediation in family business?

Family business is not a case when business partners can simply split up in the occasion of disagreement. In family business issues, mediation deals with both relations and business interests. Even if parties decide to separate, mediation helps to preserve human relations. Mediation is confidential and for those who prefer home-business affairs are not talked publicly, mediation is a viable option. Last but not the least, in mediation, regardless of age, gender, point of view, role, and position, no one is criticized, judged, or ignored. In family business matters, the goal of mediation is to create enough space for every business-involved family member’s voice to be heard and valued.

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How does mediation provide anti-fragility to family business?

I am a vigorous proponent of differentiating mediation and conciliation. Mediation is not always about peace. Quite often, parties, especially business people, seek for a solution, not for peace. The goal of mediation is not to conciliate disputants, but to reconcile their interests and views, which, at the end of the day, bring sustainable outcome. At the same time, as it was mentioned above, mediation does not put aside the relationship part. Mediator helps family members to explore pros and cons of different approaches. Everyone feels comfortable and understands what is going on. A good example of how mediation can help, is demonstrated in the movie “Fairly Legal”: Kate, the mediator, is invited to facilitate disagreement between father and son regarding their clothing manufacture business because they were not able to reach an agreement on their own.

Anti-fragile mindset considers any problem as an opportunity not only to resist, but to grow. In addition to sorting out misunderstandings, mediation provides family businesses with the unique opportunity to find creative solutions, to build momentum for family business to prosper for the benefit of a family, community, city and country.

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[1] Family Capital, "The World's Top 750 Family Businesses Ranking"// https://www.famcap.com/the-worlds-750-biggest-family-businesses/

[2] A. Okunev, "The Specifics of Corporate Governance in Family Companies"//https://cgpa.com.ua/

[3] Harry Levinson, "Conflicts that Plague Family Businesses"// https://hbr.org/1971/03/conflicts-that-plague-family-businesses

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The Mediation Summit 2026, held in Dubai, brought together over 250 participants and 26 expert speakers from across the region and internationally for a full day of dialogue, insight, and forward-looking discussion on the evolving role of mediation in the UAE and across the MENA region.

Organized by the Dubai International Arbitration Centre (DIAC) in partnership with the Mediation Hub MENA, the Summit reflected the growing institutional commitment to mediation as a cornerstone of modern dispute resolution and business governance.

Opening the Summit, Robert Stephen, Registrar of DIAC, and Dr. Ahmad Alozn, PhD, Founder of The Mediation Hub MENA, set the tone for a day focused on credibility, integration, and scale. Their remarks emphasized mediation's expanding role within legal systems, commercial frameworks, and public-sector projects.

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Global Perspectives and Institutional Leadership

The Summit featured three major keynote addresses and five dynamic discussion panels, creating a comprehensive program that balanced strategic vision with practical application. Keynote speakers included H.E. Eng. Maysarah Eid, Director General of the Abu Dhabi Projects and Infrastructure Centre, Sir Robin Knowles, Judge of the UK High Court (Commercial Division), and H.E. Sarah Shaw, CEO of the National CSR Fund (MAJRA). Their interventions highlighted mediation's increasing relevance within judicial ecosystems and large-scale infrastructure and government projects, and the increasing reliance on collaborative dispute prevention. Furthermore, the Summit featured important participation by key and leading justice regulatory bodies from the UAE public sector, such as a very generous delegation both from the UAE Ministry of Justice, and the Government of Dubai Legal Affairs Department.

Panel I: International Trends and Local Developments, moderated by Christine Maksoud, Founder and Executive Director of The Mediation Hub MENA, explored global best practices and regional adoption. Panelists included Ali Al Aidarous, Gary Birnberg, and Shaikha Al Qattan, who examined how mediation frameworks are being implemented in practice across jurisdictions.

This was followed by Panel II: The Dispute Resolution Spectrum – When Mediation Makes Sense, moderated by Dr. Ahmad Alozn, Founder of The Mediation Hub MENA, bringing together representatives from arbitration, government, and corporate sectors to discuss how mediation integrates within the wider legal, commercial and financial ecosystems. The morning sessions concluded with a dedicated focus on Mediation and ESG, featuring remarks by H.E. Sarah Shaw, CEO of the National CSR Fund (MAJRA), underscoring mediation's role in translating ESG commitments into measurable, credible behavior.

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From Frameworks to Practice

The afternoon sessions shifted the focus from policy to practice. Panel III: Sector-Specific Disputes Relevant to the Region addressed real-world applications of mediation in high-stakes sectors. Part I, moderated by Kim Rosenberg of Freshfields LLP, focused on Construction, Infrastructure, and Development Disputes, featuring experienced international mediators and arbitrators. Part II, moderated by Henrietta Jackson, Founder of IPOS Mediation, examined Family Business and SME Disputes, highlighting that mediation in these contexts protects not only capital, but legacy, identity, and trust. A forward-looking presentation by Fabiola Keramidas, President of the Chamber of Conciliation, Arbitration and Intercultural Mediation (Brazil), addressed digitalization, confidentiality, cultural considerations, security, and the responsible use of AI tools in mediation.

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The Future of Mediation in the UAE

The Summit concluded with Panel IV: Mediation Challenges and Future Outlook, moderated by Zouhdi Yakan, with speakers examining innovation, data, technology, and market readiness. In her closing remarks, Christine Maksoud emphasized that while the UAE mediation ecosystem is rapidly taking shape – with laws, institutions, and trained professionals in place – legislation alone is not enough.

‍“The future of mediation will be shaped by the choices businesses make today,” she noted, echoing the Summit’s central message that mediation begins with listening – before positions harden and relationships break.

This message was reinforced through the launch of the UAE Mediation First Pledge, an initiative by The Mediation Hub MENA inviting businesses to commit to mediation before litigation, preserving value, protecting relationships, and resolving disputes efficiently without loss of time, control, or reputation.

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A Collective Effort

The Mediation Summit 2026 reaffirmed mediation's position as not only a legal mechanism, but a strategic business and governance tool, reflecting Winston Churchill's words cited during the Summit: “Courage is what it takes to stand up and speak. Courage is also what it takes to sit down and listen.”

As the UAE continues to position itself as a global dispute resolution hub, the Summit sent a clear message: choose mediation – before damage is done.

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Summit Statistics

The Summit drew strong participation from across the legal and business ecosystem, with 38% from legal services, 20% from regulatory authorities, and 10% from legal support sectors. The diverse audience also included representatives from consulting (9%), education (8%), and courts and dispute resolution centers (5%), underscoring mediation's relevance across professional sectors. Notably, 63% of attendees represented private sector organizations, with 27% from government and semi-government entities, reflecting the Summit's appeal to both private and public sectors. While 86% of participants are based in the UAE, 14% come from the MENA region, Europe, the Americas, highlighting the Summit's growing regional and international reach, and the international interest in the UAE as a hub of alternative dispute resolution services.

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The ESG Gap Is Real And Growing

Over the past decade, Environmental, Social, and Governance (ESG) criteria have evolved from voluntary guidelines into powerful legal frameworks and drivers of corporate behavior. Regulation is intensifying, stakeholder expectations are rising, and civil society is actively engaging in ESG disputes worldwide. Companies face growing pressure not only to prove profitability but also responsibility, with increasing demands for ESG risk metrics from investors and corporate entities. Yet, behind the surge of ESG reports, sustainability strategies, and ethical commitments lies a persistent gap, a growing mismatch between external promises and internal realities. The OECD’s recent report, Behind ESG Ratings: Unpacking Sustainability Metrics, highlights the complexity beneath the numbers.

Many organizations struggle to translate ESG from written policies to authentic practices, from a checklist of commitments to a true “speak-up” culture that delivers real value on the ground. Far from being perceived as an opportunity, this gap is turning into a growing source of disputes, polarizing essential debates around environmental protection and human rights. The ESG gap is not merely technical or legal, it is political, emotional, and operational. It breeds misunderstandings, polarized visions, and conflicts.

Tensions inevitably arise, of multiple nature:
• Between strategy and operations: “We can’t meet these goals and stay competitive.”

• Between generations: “You say climate matters, but your decisions say otherwise.”

• Between departments: “Operations says no; sustainability says yes.”

• Between headquarters and local communities, especially in complex or extractive sectors.

• Between countries and nations.

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ESG Tensions Are Structural, Not Incidental

In an era of climate urgency and rapid digital transformation, AI and high-speed technologies amplify societal fractures, reinforce like-minded silos, and often surface behaviors reminiscent of darker chapters in our history.

The ability to listen, facilitate, and co-create is becoming a key competitive and an ethical skill. The ESG agenda naturally creates friction because it pushes organizations to change: to reassess priorities, disrupt routines, and balance competing interests – money versus future generations, money versus equality etc.. It fundamentally challenges the very purpose of business, shifting from pure economic goals to broader, deeper responsibility and purpose, where actions speak louder than words and steps away from immediate rewards.

The Rana Plaza tragedy in 2013 provoked strong reactions worldwide, raising profound ethical questions: does corporate responsibility stop at borders, or does it extend alongside the global reach of products, technologies, and access to critical resources?
France’s pioneering Duty of Vigilance law (Loi n° 2017-39922) imposes obligations on large companies to prevent serious harm to human rights, health, safety, and the environment across their operations and value chains.
European directives now aim at building on this foundation, to extend vigilance obligations across value chains, including non-EU operations, aiming for harmonized sustainability due diligence, although the Omnibus package deal seriously hold back the movement.

The specialized court in Paris’s Pôle, Chambre 12, clarify recently some of the law’s substance application. The June 17, 2025 ruling in La Poste v. Syndicat SUD PTT4 stated that:

• Risk mapping must be precise, not generic.

• Companies are not required to implement detailed measures unilaterally but must co-design effective actions with stakeholders.

• Genuine consultation is mandatory with proven opportunity to elaborate the plan collectively.

• Business secrecy limits disclosure of sensitive data about the value chain, but does not preclude transparency on methodology used and risk mapping Stakeholder engagement and effective grievance mechanisms lie at the heart of duty of vigilance strategy and processes that must be both genuine and participatory on both sides.

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What Mediation Offers Beyond Conflict Resolution

Why is mediation suited to a strategic, results-driven approach to ESG challenges?

Mediation is a vital resource in defining and structuring vigilance duties, especially when authentic stakeholders’ engagement and structured dialogue are required. Identifying key stakeholders and managing complex dialogue rounds is challenging for companies, for many reasons, lack of time, distrust, misunderstanding, difficulty to identify interlocutory. This contradicts the viral spread of unverified information, fake news, and hasty judgments that dominate public discourse. Time matters. Mediation procedures are structured and proactive. But they create appropriate timing to process, digest, understand, evaluate information without jumping to conclusion immediately. A neutral third-party expert is a resource to design the process, agenda, timing, priorities and negotiation steps with the parties’ consent and active participation. It is a voluntary process, all along.

As such, mediation can be used as a governance and engagement tool to:

• Surface diverging interests before escalation

• Build trust

• Reframe disagreements

• Enable co-creation beyond win/lose binaries visions

• Provide safe space for internal dissent or community voices

• Reduce litigation risk and reputational harm

This “ESG mediation project” is non- contentious but ensures robust, interest- based, realistic negotiations toward achievable plans with milestones. It relies heavily on William Ury’s four pillars from Getting to Yes book:

1. Be soft on the people, hard on the problem.

2. Focus on interests, not positions.

3. Use objective criteria.

4. Work together for fair and creative solutions.

In contentious matters including Investor-State disputes, the process increasingly relies on conciliation mechanisms (e.g., ICSID, World Bank, OECD Grievance mechanism) to preserve investments and local development, emphasizing the fundamental element of relationships, expectations and needs in the context of financial investments and settlement of disputes. This is never just about money.

Case In Point: Environmental Contamination And Constructive Stakeholder Engagement

A recent confidential case involving long-term environmental contamination, stemming from industrial practices halted 30 years ago and passed through successive owners of the site illustrates these challenges. Successive owners were entrenched in distrust and blame for years, with strong legal postures focused on liability limits. Litigation risk, delay, and reputational damage loomed large. While discussion was ongoing about the potentialities, the actual assessment of the risk was not progressing because, truth be told, no one wanted to spend the money on it.

Legally though, each party held a share, the proportionality could be debated, but this would find no grace to the public opinion. A turning point came when a toxicology report revealed serious potential human health risks. More investigations were needed, and the time to act was now. With the involvement of environmental engineers from both sides, the dynamics changed, the perspective was no more risk-based or legally driven. Negotiations shifted from positional stances to interest-based dialogue. Parties agreed to jointly investigate, clarify risks, implement preventive measures, and remediate jointly the potential damage.

A collaborative stakeholders engagement process emerged, featuring:

• Clear dialogue protocols & steps ensuring confidentiality and equality

• Mutual and equal funding

• Expert vetting and involvement milestones

• Coordinated communication procedures

• Regular adaptive decision-making

• Clear investigation and remediations milestones involving the local authorities

• Transparency

What began as a conflict with potential for prolonged private litigation became a platform for accountability, innovation, and trust-building. The outcome of the investigation/remediation procedures resulted on a 100% risk mitigation for people and the environment around the site. A clear win on every sides. This case demonstrates that mediation is not about evading responsibility, but in long terms issues, where liability allocation is not that obvious, surfacing the issues in a structured manner creates ownership. Resolution begins with how we choose to look at the problem and with involving the right people at the discussion table who can challenge views and bring different perspectives.

No One-Size-Fits-All ESG – The Multicultural Dimension in ESG Mediation

ESG is a global language spoken with diverse accents. What “responsibility” means in Paris differs from Nairobi, Mumbai, or Houston. Culture, history, regulation, and power dynamics shape perceptions of fairness and sustainability. The success of projects involving multicultural parties across different regions depends heavily on the parties’ ability to mutually understand cultural realities from both sides, ethics, and frameworks. Many ESG frameworks assume universality that doesn’t exist. Global companies are caught between conflicting norms and invisible cultural assumptions. Mediation uncovers and works with these differences, not erasing them but honoring pluralism. It questions dominant narratives, recognizes cultural specificity, and finds complementary perspectives. In a fractured world, connection is the most pragmatic and achievable goal we can aim for. Mediation offers this safe space: slowing down, translating expectations and needs, and building bridges.

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Conclusion: Don’t Manage ESG Challenge. Mediate It.

The transition to sustainable enterprise is complex and conflictual by nature. But conflict is not failure, it is a signal that a change is needed. Companies that embrace proactive conflict engagement, using mediation, shift from reactive dispute management to shaping shared futures. Mediation offers a human-centered, rigorous path that embodies Humankind: building bridges, where law alone falls short, turning conflict into opportunity.

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Construction projects are inherently complex and structured, often involving diverse parties, tight timelines, and substantial budgets. In today’s high-stakes construction projects, disputes are inevitable; however, how they are handled can determine the success or failure of multi-million-dollar ventures. To manage inevitable conflicts, the FIDIC (Fédération Internationale des Ingénieurs-Conseils) agreements have evolved dramatically, from litigation towards collaborative processes like adjudication and finally toward mediation. This shift reflects a growing emphasis on resolving disputes efficiently, maintaining project momentum, and preserving long-term relationships. Below, we trace this evolution, presenting Sub-Clause 21 in its entirety, before demonstrating how mediation naturally integrates into the FIDIC framework.

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To understand how mediation emerged, it is essential to revisit the early mechanisms of disputes management. Historically, under the 1999 FIDIC editions, a Dispute Adjudication Board (DAB) was introduced to deliver fast, interim decisions during project execution, reducing obstruction and reliance on costly arbitration. These boards often encouraged settlement before formal rulings, introducing a conciliation-like element informally into proceedings.

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By 2017, the Dispute Adjudication Board became a Dispute Avoidance/Adjudication Board (DAAB). The DAAB role was explicitly expanded to include helping parties avoid disputes. This shift signified FIDIC’s intention to proactively manage differences through dialogue, creating space for structured collaboration—like mediation—before matters escalate. The 2017 amendments introduced, through the Clause21, a structured reference for dispute resolution procedures, creating a clear pathway from notice to adjudication, “amicable settlement”, and ultimately arbitration.

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The text of Sub-Clause 21.3 and Sub-Clause 21.4 (summarized for clarity) reads as follows:

Sub-Clause21.3 [Dispute Avoidance/Adjudication Board]: The DAAB shall be in place from the beginning of the contract. Its role is not limited to adjudication but also includes dispute avoidance. The DAAB may invite the Parties to attempt to resolve issues amicably before rendering a decision.

Sub-Clause21.4 [Amicable Settlement]: If a Party is dissatisfied with the DAAB’s decision, it may issue a Notice of Dissatisfaction. In such case, the Parties shall attempt to settle the dispute amicably before referring it to arbitration.

In summary, Clause 21 of the FIDIC 2017 Red Book sets out a comprehensive Ulti-tiered approach to dispute resolution. It begins with the notification of claims, followed by the proactive role of the Dispute Avoidance/Adjudication Board (DAAB) to either prevent disputes from arising or to adjudicate them swiftly when they do. If disagreements persist, the clause insists on a phase of amicable settlement before moving forward to arbitration. This layered structure reflects FIDIC’s philosophy of balancing efficiency with fairness, ensuring that disputes are addressed early and constructively.

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Here lies the missing link: while Sub-Clause 21.3 introduces the DAAB’s facilitative and preventive role, Sub-Clause 21.4 institutionalizes the obligation for the parties to attempt “amicable settlement.” Although FIDIC does not explicitly name mediation, this structured and confidential process where a neutral third party facilitates dialogue, and negotiation serves as the perfect entry point for resolving disputes. This amicable settlement phase essentially acts as a mandatory cooling-off period, requiring parties to attempt resolution before escalation.

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By agreeing to appoint a neutral mediator within the amicable settlement window (commonly 28 to 56 days), parties can structure the process, fulfill their obligation and maximize the chance of resolving the dispute without escalation. In this sense, Sub-Clause 21.4 provides legal grounding to mediation within the FIDIC hierarchy, turning what could otherwise be a passive obligation into an active and results-oriented procedure.

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When carefully examined, Sub-Clause 21.3 represents more than a procedural step; it is a subtle but deliberate gateway to consensual dispute resolution. The DAAB role is to issue a decision that is binding but not final, which means parties must comply immediately, yet they retain the right to challenge the outcome. This creates an intermediate space between compliance and final resolution, a space that is uniquely suited for mediation.

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Together, Sub-Clause 21.3 and 21.4 form a continuum: the DAAB first encourages resolution through dialogue, and if its decision is contested, the “amicable settlement” obligation seamlessly opens the door to mediation as the natural next step.

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In practice, this structured approach often prevents disputes from escalating unnecessarily. A party dissatisfied with a DAAB decision may hesitate to move directly to arbitration because of its costs, length, and adversarial nature. In this context, mediation emerges as a pragmatic alternative, allowing parties to reassess their positions, preserve confidentiality, and negotiate a mutually beneficial solution without jeopardizing the project timeline.

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For example, consider a dispute where a contractor claims additional costs due to unforeseen ground conditions. The DAAB might issue a binding but not final decision awarding part of the claim. The employer, dissatisfied, issues a Notice of Dissatisfaction under Sub-Clause 21.4. Rather than rushing to arbitration, both parties agree to mediation. In just few sessions, they reach a creative settlement covering payment terms and project adjustments, preserving the project’s timeline and saving millions in arbitration costs. This example illustrates how mediation gives real substance to the “amicable settlement” requirement and is increasingly recognized as best practice in large-scale international projects.

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This is particularly relevant in international construction projects, where disputes often revolve around variations, delays, or unforeseen site conditions. Instead of litigating technical disagreements through formal channels, parties can move toward a facilitated dialogue with the DAAB’s encouragement. Many practitioners now view this sub-clause as the hinge that operationalizes mediation within the FIDIC framework, making it an essential feature of modern project dispute management and not an optional accessory.

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The insertion of mediation in the FIDIC dispute resolution ladder is not merely symbolic; it produces tangible value for all stakeholders. First and foremost, mediation helps preserve commercial and contractual relationships, restores trust and fosters cooperative problem-solving, which is indispensable when contractors and employers must continue working together until project completion.

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Mediation also significantly reduces costs and delays compared to arbitration or litigation. By resolving disagreements in weeks rather than years, parties avoid project stagnation and financial drain. This efficiency is fully aligned with FIDIC’s philosophy of ensuring that disputes do not derail the works.

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Moreover, mediation enhances the legitimacy of outcomes. Unlike arbitral awards, which impose a solution, mediated agreements are co-created by the parties themselves. This voluntary character increases compliance rates and reduces the risk of future disputes over the same issues. Within the FIDIC structure, mediation complement the DAAB’s preventive and adjudicative roles rather than competing with them.

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Ultimately, by embracing mediation at the stage opened by Sub-Clause 21.3 and solidified by Sub-Clause 21.4, FIDIC users are not simply following a procedure; they are adopting a culture of proactive dispute management. This represents a decisive step toward a more collaborative and sustainable future in the global construction industry.

The evolution from litigation and arbitration to negotiation, adjudication, and ultimately mediation reflects a broader shift in the construction industry: one toward collaboration, efficiency, and dispute prevention. Clause 21, particularly through the interplay of Sub-Clauses 21.3 and 21.4, serves as the pivotal mechanism enabling this transformation. By understanding and leveraging the DAAB and the mediation pathway, project stakeholders can not only resolve disputes effectively while fostering long-term relationships and project success. FIDIC’s approach demonstrates that the future of dispute resolution lies not in adversarial battles, but in structured, cooperative, and creative problem-solving. In this way, FIDIC not only manages disputes, but it also redefines them. The journey from dispute boards to mediation shows that in construction, collaboration is no longer just a choice; it is the new standard for success.

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