On 28 September 2023, the UAE has issued a new federal law that merges the existing laws on mediation and conciliation in civil and commercial disputes under a single legal framework. The law came into effect on 29 December 2023, it aims to streamline the processes and procedures for resolving disputes amicably, whether before or during legal proceedings.  

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The law provides for the establishment of mediation and conciliation centers within the courts of first instance, or online platforms, to facilitate the settlement of disputes through the intervention of a neutral third party. The law also allows for the creation of private mediation centers and branches of foreign mediation centers in the UAE.  

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The law distinguishes between mediation and conciliation, based on the role and degree of involvement of the neutral third party. In mediation, the mediator acts as a facilitator, helping the parties reach an agreement using mediation techniques; whereas, in conciliation, the conciliator is more interventionist, suggesting possible solutions to the parties for settling the dispute.  

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The law also sets out the criteria and procedures for the accreditation and qualification of mediators and conciliators. Mediators can be selected from the experts registered with the Ministry of Justice or the local judicial authority, or from professional mediators, including retired judges and lawyers. The Federal Judiciary or the president of the local judicial authority will establish the qualifications for appointment of conciliators. The law imposes specific restrictions and obligations on mediators and conciliators with regard to conflict of interest, confidentiality, and disciplinary measures.  

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The law regulates both contractual and judicial mediation, as well as mandatory and voluntary conciliation. Contractual mediation can be initiated by the parties through a written agreement before or after the dispute arises, and the supervisory judge of the mediation and conciliation center will oversee the process and affirm the settlement agreement. Judicial mediation can be referred by the competent court at any stage of the legal proceedings, upon the court's proposal or the parties' request or consent.  Mandatory conciliation is a prerequisite for certain types of disputes, such as those with a value not exceeding AED 5,000,000 or those involving family members, before litigation can proceed. Voluntary conciliation can be initiated by the parties or by court referral, subject to the parties' mutual consent.  

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The law also preserves some key principles that were upheld in the previous legal framework, such as the suspension of limitation periods, the possibility of seeking interim measures, and the concept of 'without prejudice communications' during the mediation and conciliation process. The law aims to enhance the efficiency and effectiveness of mediation and conciliation as alternative dispute resolution methods, and to foster trust and satisfaction among the users and the legal community.