Launch of the DIFC Mediation Service Centre

The launch follows the enactment of Dubai Law No. (2) of 2025, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The law provides the legislative foundation for the new services, including both the Mediation Centre and a newly introduced Notary Service.

This development is in keeping with a broader trend in the UAE of increasing engagement with settlement and alternative dispute resolution mechanisms. For example, this year has seen the Dubai Legal Advisors Department introduce mandatory mediation training as part of all legal advisor CLPD training.

Objectives

The DIFC Courts’ stated objectives are:

• Promote Alternative Dispute Resolution (ADR): Offering structured mediation services to resolve disputes amicably.  We see this as a key, positive development in increasing the understanding of the mediation process, which is quite different to conciliation or negotiation (see our global ADR guide for more information).
• Reduce Litigation Costs and Time: Provide a faster, more flexible resolution process. In our experience, mediation can be a very effective tool for resolving disputes in their entirety, or for narrowing the areas of dispute between parties.
• Enhance Judicial Efficiency: Support Dubai’s strategic goals in legal innovation and governance. Other jurisdictions, such as England and Wales, often expect parties to consider or attempt some form of ADR before issuing formal proceedings. We will continue to monitor whether the DIFC introduces any form of mandatory mediation, whether before or during litigation proceedings. 
• Broaden Access to Justice: Make dispute resolution more accessible to businesses and individuals.  Mediation, like other forms of alternative dispute resolution, offers a valuable opportunity to focus parties’ minds on the benefits of early settlement. In doing so, it can enhance access to justice by mitigating the risk of litigation outcomes being driven by financial imbalance or a “deepest pockets wins” dynamic.

The key features being promoted by the DIFC are: 

• Registered Mediators: Parties can select from a pool of DIFC-registered mediators, ensuring that suitably trained mediators are appointed, giving parties the most effective platform for resolution.
• Flexible Mediation Options: Sessions can be held in-person or online via an AI-enabled Court Management System (CMS). Virtual mediations bring with them further costs and convenience benefits and can prove equally effective in facilitating settlements. We therefore expect this modern-day aspect of the DIFC’s offering to be well received and widely adopted.
• Pre-agreed Terms: Parties can agree on fees and terms prior to mediation. This clarity around costs should help encourage greater uptake of the process and enhance its effectiveness by removing financial uncertainty.

Our conclusion

We welcome the DIFC’s evolution of its mediation offering. As a firm, we regularly advise clients to consider ADR, which can often deliver quicker, more efficient, and cost-effective outcomes. Mediation in particular, can offer clients increased flexibility in terms of remedies available, allowing parties to explore alternative solutions to preserve wider business interests and relationships.

Of course, there is a balance to be struck between cost savings and wider objectives. It will therefore be interesting to see how the concept of ADR is embraced more widely in the region.