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how to start court‑referred mediation in the UAE 2026

How to Start Court‑referred Mediation in the UAE (step‑by‑step), 2026

By Global Law Experts
– posted 1 hour ago

Understanding how to start court‑referred mediation in the UAE in 2026 is essential for any party involved in civil or commercial litigation before a federal court, the DIFC Courts, or an Abu Dhabi Judicial Department (ADJD) court. Federal Decree‑Law No. 40 of 2023 on Mediation and Conciliation in Civil and Commercial Disputes provides the unified statutory framework governing this process, and the Federal Judiciary Council’s integrated legislative framework announced on 23 January 2026 has introduced material changes to referral mechanics, panel appointments, and default commencement timelines.

This guide sets out the complete mediation procedure UAE practitioners and international parties need to follow, from the moment a court issues a referral order through to converting a signed settlement into an enforceable instrument. Whether you are in‑house counsel acting on a referral notice received this week or external counsel preparing a referral application, the step‑by‑step procedure, documents checklist, timeline table, and costs breakdown below will give you a single, actionable reference point for the International Mediation, United Arab Emirates process.

Overview of Court‑Referred Mediation in the UAE and Who It Applies To

Court‑referred mediation occurs when a judge directs the parties in pending litigation to attempt resolution through a neutral mediator before (or alongside) continued court proceedings. It is distinct from voluntary mediation, where parties agree to mediate independently, without a court order. Under Federal Decree‑Law No. 40 of 2023, mediation is expressly recognised as an optional and alternative method for the amicable settlement of civil and commercial disputes, whether arising from contractual or non‑contractual relationships.

The court‑referred mediation pathway applies across several jurisdictions in the UAE. Federal courts operating under the Ministry of Justice framework can refer disputes at the pre‑trial or interim stage. The DIFC Courts maintain their own practice directions and a dedicated panel of mediators through the DIFC mediation service. The ADJD operates Mediation and Conciliation Centres that accept referrals from Abu Dhabi courts under the Abu Dhabi mediation rules 2026 updates. Local emirate courts in Dubai, Sharjah, and other emirates may also issue referral orders under the federal statute.

A referral can be triggered in two ways: the presiding judge may order the parties to attend mediation on the court’s own motion, or a party (through counsel) may file an application requesting that the court refer the matter. Once mediation concludes successfully and a settlement agreement is reached, Federal Decree‑Law No. 40 of 2023 allows that settlement to be converted into an enforceable instrument, giving it the same force as a court judgment. This mediated settlement enforceability mechanism is a significant incentive for parties to engage with the process in good faith.

Eligibility and Prerequisites for Court‑Referred Mediation

The mediation procedure UAE courts apply is broad in scope. Under Federal Decree‑Law No. 40 of 2023, mediation may be carried out in respect of all civil and commercial disputes in which settlement is possible, provided the settlement does not contradict applicable legislation, public order, or public morals. This covers contract disputes, construction claims, commercial agency matters, insurance subrogation, joint venture disagreements, and a wide range of other civil and commercial causes of action.

Before a court will refer a matter, certain prerequisites should be in place. The dispute must fall within the court’s jurisdiction. Both parties must have legal capacity and, where a company is involved, the representative attending must hold valid authority to negotiate and settle (typically a board resolution or power of attorney). If the contract contains a prior ADR clause requiring mediation before arbitration or litigation, the court will generally expect compliance with that clause before referral. International parties should note that service of the referral notice must comply with UAE procedural rules, and any foreign‑language documents will require certified Arabic translation.

Exclusions and Non‑Compellable Disputes

  • Criminal matters. Disputes that are criminal in nature fall outside the scope of Federal Decree‑Law No. 40 of 2023.
  • Personal status and family law. These are typically governed by separate legislation and specialised courts, and are generally excluded from the civil and commercial mediation framework.
  • Disputes contrary to public order. Any claim where settlement would contravene public policy or public morals cannot be referred to mediation.
  • Injunctive or preservation matters. While a referral to mediation does not automatically discharge urgent injunctive relief, the court will assess whether interim measures need to remain in place during the mediation period.

Step‑by‑Step Procedure: How to Start Court‑Referred Mediation in the UAE (2026 Mediation Steps)

The following six steps outline the complete mediation steps UAE parties and counsel must follow once a court referral is made or requested. The timeline table immediately below summarises who is responsible for each action and the typical duration involved.

Step Who Does It Typical Duration
1. Court issues referral order or party requests referral Judge or party counsel (file application) Same day to 7 days from hearing or application
2. Parties notified and mediation commenced Court registry sends referral notice; counsel to acknowledge 1–7 days from order
3. Mediator appointment (court panel, party nominated, or administered) Court (panel), parties (agreement), or ADR centre 3–21 days depending on appointment route
4. Pre‑mediation exchange (position papers and documents) Parties and counsel 7–21 days as directed by mediator or court
5. First mediation session Mediator and parties (in person or virtual) Within 14–30 days of appointment
6. Settlement signed and filed for conversion to enforceable instrument Parties, mediator, counsel; court registry for enforcement filing Signed at session; court filing within 1–7 days

Step 1, Court Issues Referral Order or Party Requests Referral

The process begins either when the presiding judge issues a referral order on the court’s own motion or when a party files a written application requesting referral. In practice, judges in the UAE federal courts and ADJD courts may propose mediation during a case management hearing, particularly when the dispute appears commercially motivated and amenable to compromise. The referral order will specify the case number, the names of the parties, the subject matter to be mediated, and any time limits for commencing the mediation. Party counsel should obtain a certified copy of the referral order immediately, as this document is required by the mediator and any ADR centre involved.

Step 2, Notice to Parties and Mediation Commencement

Once the referral order is issued, the court registry sends a formal notice of mediation to all parties. The notice sets out the obligation to participate, the deadline for acknowledging the referral, and any directions regarding the language of the mediation or the appointment method. Each party’s counsel must file an acknowledgement with the court registry within the timeframe stated, typically 3 to 7 days. At this stage, counsel should also notify the relevant ADR centre (if the mediation is to be administered by the DIFC Courts, DIAC, or the ADJD Mediation and Conciliation Centre) and provide initial contact details, representative names, and availability.

Step 3, Choose Mediator and Complete Appointment

The appointment of the mediator is one of the most consequential steps. There are three principal routes. First, the court may appoint a mediator from its own approved panel, a process that typically takes 7 to 14 days. Second, the parties may agree on a mediator by joint nomination, which can be completed in as few as 3 to 7 days if both sides cooperate.

Third, where the mediation is administered by an institution such as the DIFC mediation service, DIAC, or the ADJD centre, the institution will appoint a mediator from its own roster following receipt of the intake form and registration fee; this administered route may take 7 to 21 days depending on centre processing times and mediator availability.

The DIFC Courts maintain a dedicated Panel of Mediators under their published practice direction. Parties seeking mediation in the DIFC should consult the practice direction for panel registration criteria and appointment procedures. For Abu Dhabi referrals, the ADJD Mediation and Conciliation Centre operates its own appointment mechanism, and parties should file the centre’s intake form directly. If the parties fail to nominate a mediator within the deadline set by the court, the court will appoint one from the panel, a safeguard that prevents the process from stalling.

Step 4, Pre‑Mediation Documents and Joint Case Management

Before the first session, each party must prepare and exchange position papers. A position paper is typically 5 to 10 pages and should set out the claims or defences, the key evidence relied upon, the relief sought, and a realistic settlement range. Counsel should also assemble a core documentary evidence bundle (contracts, invoices, key correspondence) with certified copies and, where foreign‑language originals are involved, authorised Arabic or English translations. The mediator may issue directions for a pre‑mediation conference call or written case management exercise, including agreeing a confidentiality protocol, a critical step given that Federal Decree‑Law No. 40 of 2023 imposes obligations regarding the confidentiality of mediation communications.

Step 5, First Mediation Session

The first mediation session usually takes place within 14 to 30 days of the mediator’s appointment. Sessions may be held at the court premises, a dedicated mediation centre (DIFC, DIAC, or ADJD facility), or virtually if the parties and mediator agree. Each party must be represented by a person with full authority to settle. If a translator is required, arrangements should be confirmed in advance with the mediator. Counsel typically attend to advise their clients but allow the mediator to lead the discussion.

Step 6, Settlement, Documentation, and Conversion into Enforceable Instrument

If the mediation results in agreement, the parties sign a settlement agreement, ideally at the session itself, with assistance from the mediator and counsel. The settlement must be signed by authorised signatories (verified against the powers of attorney and board resolutions lodged earlier). Under Federal Decree‑Law No. 40 of 2023, a properly executed settlement can then be filed with the referring court for conversion into an enforceable instrument. This application is typically submitted to the court registry within 1 to 7 days of signature. Once the court ratifies the settlement, it acquires the same binding force as a court judgment, enabling direct enforcement through UAE execution courts.

Documents Needed for Mediation in the UAE

Assembling the correct documents at the right stage prevents delays and preserves negotiating credibility. The table below lists every document typically required during court‑referred mediation in the UAE, together with notes on who issues it, the required format, and key validity considerations.

Document Notes (Issuing Authority, Format, Validity)
Court referral order (certified copy) Issued by the court registry. Provide PDF or scanned certified copy to the mediator and ADR centre. Must include case number and presiding judge’s name.
Notice of mediation / response to referral Prepared by party counsel. Contains contact details, representative names, preferred language, and availability. File with court registry and share with mediator or ADR centre.
Position paper (summary of dispute and issues) Prepared by each party (typically 5–10 pages). States claims or defences, key evidence, relief sought, and suggested settlement range.
Core documentary evidence bundle Certified copies of key contracts, invoices, and communications. Translate into Arabic or English using an authorised translator if required by the court or mediator.
Power of Attorney / proof of authority to settle Companies: board resolution or POA identifying the authorised signatory. Individuals: passport or national ID copy. Legalise or apostille as required for foreign‑issued documents.
Mediator appointment form / ADR centre intake form Issued by the court panel or ADR centre (DIFC, DIAC, ADJD, or other). Complete and return with applicable registration fee.
Confidentiality / mediation agreement If parties have a pre‑existing confidentiality agreement, attach it. Otherwise, the mediator will typically provide a standard confidentiality protocol for signing before the first session.
Translation and legalisation documents Required for foreign‑language evidence. Consular legalisation or apostille may be necessary. The DIFC Courts and ADJD may accept certified translations without additional consular steps, confirm with the relevant registry.
Settlement agreement (final, signed) Signed by all authorised parties at or following the mediation session. If enforcement is sought, accompany with a request to the court to convert to an enforceable instrument.

Parties involving foreign entities should pay particular attention to powers of attorney and documentary legalisation. A POA issued abroad typically needs consular attestation or an apostille (if the issuing country is party to the Hague Apostille Convention) followed by attestation by the UAE Ministry of Foreign Affairs. Failure to present properly legalised authority documents is one of the most common causes of adjournment.

Mediation Timeline UAE: Key Deadlines and Consequences

Court‑referred mediation operates within relatively compressed timelines. The table below highlights the critical deadlines that parties must meet and the practical consequences of missing them. Where DIFC Courts practice directions or ADJD rules specify maximum periods, those maxima should be treated as hard deadlines rather than aspirational targets.

Action Typical Deadline Consequence of Missing
Acknowledge mediation referral notice 3–7 days from receipt of notice Court may proceed with scheduling or record the party’s non‑cooperation, which can influence costs orders.
Nominate or agree on mediator 7–14 days from referral order Court appoints a mediator from its panel at its discretion. The parties lose input into the selection.
Exchange position papers and evidence bundles 7–21 days before the first session (as directed) Session may proceed without the non‑complying party’s full position. Negotiating credibility is diminished.
File settlement for court conversion 1–7 days after signature Delay to enforcement. If the filing period lapses, parties may need to reapply or risk the settlement being treated as a contractual agreement only, without the force of a court judgment.

Preserving urgent rights during the mediation timeline is essential. A referral to mediation does not automatically stay injunctive or preservation proceedings. If interim relief is in place, counsel should confirm with the court whether it survives the referral order, and if not, apply for its continuation separately.

Mediation Costs UAE: Fees and Tax Considerations

The costs of court‑referred mediation in the UAE vary by jurisdiction, ADR centre, and the complexity of the dispute. The table below provides indicative ranges. Parties should verify exact figures with the relevant court registry or ADR centre before the mediation commences, as fee schedules are updated periodically.

Item Typical Range Notes
Court referral / administrative fee Varies, often nominal Many courts do not charge a separate referral fee. Confirm with the court registry handling your case.
ADR centre administration / registration fee (DIAC, DIFC, ADJD) AED 1,000 – AED 10,000+ Centres use tiered fee schedules based on claim value. Check the published schedule of the relevant centre.
Mediator professional fees AED 3,000 – AED 30,000+ per day Senior international mediators may charge higher rates. Travel, preparation time, and reading fees are typically charged separately.
Filing to convert settlement to enforceable instrument AED 500 – AED 5,000 Court registry fees apply. Additional stamp or registration fees may be payable depending on the court.
Translation / legalisation / notarisation AED 500 – AED 5,000 Costs depend on document volume and whether consular legalisation or apostille is required.
Legal counsel (party) AED 5,000 – AED 100,000+ Depends on the extent of counsel involvement. Some parties engage counsel only for settlement drafting and the court conversion application.
UAE VAT 5% on applicable professional services UAE VAT may apply to mediator fees and ADR centre charges. Parties should confirm the VAT treatment with their tax adviser and request VAT invoices.

Cost‑sharing is common. Parties typically split the mediator’s fees and the ADR centre’s administration fee equally, unless the referral order or a prior agreement specifies otherwise. It is good practice to agree on cost allocation in writing before the first session and to pay any required deposit or security for the mediator’s fees promptly, unpaid deposits are a frequent cause of scheduling delays.

What Changes in 2026: Regulatory and Practice Direction Updates

The mediation landscape in the UAE underwent significant development in early 2026. On 23 January 2026, the Federal Judiciary Council announced an integrated legislative framework for mediation and conciliation. This framework aims to standardise court referral procedures across federal courts, establish clearer criteria for mediator panel registration, and set default commencement timelines that courts are expected to apply when issuing referral orders. Industry observers expect the likely practical effect to be shorter intervals between referral and the first mediation session, with courts taking a more active role in scheduling.

The DIFC Courts have also updated their practice directions governing the DIFC mediation service and the Panel of Mediators. The updates address panel registration requirements, intake timelines, and the circumstances in which a DIFC judge may direct parties to mediation. Early indications suggest that the DIFC is moving toward more structured pre‑mediation case management, including mandatory exchange of position papers before the first session.

In Abu Dhabi, the ADJD has refined procedures at its Mediation and Conciliation Centres. Updated intake forms, revised fee structures, and enhanced online filing options are among the changes that took effect in early 2026 under the Abu Dhabi mediation rules 2026 framework. Practitioners handling ADJD referrals should obtain the current intake form directly from the centre and confirm any new administrative fees before filing.

The combined effect of these 2026 changes is a more formalised, institution‑driven court‑referred mediation process. Counsel should review any referral order carefully against the current practice directions of the issuing court and confirm compliance with any new registration or documentation requirements introduced after January 2026.

Common Pitfalls and How to Avoid Them

  • Missing the acknowledgement deadline. Failing to acknowledge the referral notice within 3 to 7 days can result in the court recording non‑cooperation, which may influence future costs orders. Diarise the deadline immediately upon receipt.
  • Failing to appoint a mediator in time. If the parties do not agree on or nominate a mediator within the court’s deadline, the court will appoint one from its panel without party input. Begin discussions with the other side on mediator selection as soon as the referral order is received.
  • Inadequate authority to settle. A representative who attends the mediation without a valid power of attorney or board resolution cannot bind the party to a settlement. Secure and legalise authority documents well before the first session.
  • Weak or late position papers. A position paper filed late, or one that fails to articulate a realistic settlement range, undermines the party’s credibility and may cause the mediator to question good faith. Prepare the paper within the first week of the referral period.
  • No confidentiality agreement in place. Proceeding without a signed confidentiality protocol risks disclosure of mediation communications in subsequent proceedings. Insist on a signed agreement before substantive discussions begin.
  • Ignoring translation and legalisation requirements. Foreign‑language documents that have not been translated by an authorised translator, or foreign‑issued POAs that lack consular attestation, will be rejected. Address these requirements at the outset, they can take weeks to complete.
  • Delaying the court conversion application. A signed settlement agreement that is not promptly filed with the court for conversion may lose its procedural window or be treated as a private contract rather than an enforceable instrument. File within days of signature.
  • Not engaging counsel early enough. Parties who wait until the mediation session to instruct a lawyer often find themselves unprepared on procedural requirements. Engage qualified counsel as soon as the referral order is issued, or earlier, if a referral application is being considered.

Need Legal Advice?

This article was produced by Global Law Experts. For specialist advice on this topic, contact Elsie Habib at Ambition Legal Consultancy, a member of the Global Law Experts network.

Sources

  1. UAE Legislation Portal, Federal Decree‑Law No. (40) of 2023 on Mediation and Conciliation in Civil and Commercial Disputes
  2. Ministry of Justice / Federal Judiciary Council, Integrated Legislative Framework (23 January 2026)
  3. Official UAE Government Portal, Mediation Overview
  4. DIFC Courts, Practice Direction / Panel of Mediators
  5. Abu Dhabi Judiciary Department, Mediation and Conciliation Centres
  6. Al Tamimi & Company, New Federal Law on Mediation and Conciliation
  7. Clyde & Co, Mediation in the UAE: A Guide
  8. Global Law Experts, Mediated Settlement Enforceability UAE

FAQs

How do you start a mediation in the UAE?
Mediation in the UAE can be started voluntarily by agreement between the parties or through a court referral. For court‑referred mediation, the process begins when a judge issues a referral order or when a party files an application requesting referral. Once the order is made, parties must acknowledge the notice, appoint a mediator, exchange position papers, and attend the mediation session. The step‑by‑step procedure and documents checklist above provide the complete sequence.
A party initiates the court‑referred route by filing a written application with the presiding court requesting that the dispute be referred to mediation. Alternatively, the judge may refer the matter on the court’s own motion. The court then issues a formal referral order and the registry sends notice to all parties, triggering the appointment and pre‑mediation preparation steps outlined in this guide.
The core documents include a certified copy of the court referral order, a notice of mediation or response to referral, a position paper summarising each party’s case and settlement position, a documentary evidence bundle, a power of attorney or board resolution proving authority to settle, the ADR centre’s intake form (where applicable), and a confidentiality agreement. The full documents checklist with notes on format and validity appears in the required documents section above.
There are three appointment routes. The court may appoint a mediator from its approved panel. The parties may jointly nominate a mediator by agreement. Or, where the mediation is administered by an institution such as the DIFC Courts, DIAC, or the ADJD centre, the institution appoints a mediator from its roster upon receipt of the intake form and registration fee. If the parties fail to nominate within the court’s deadline, the court appoints from the panel at its discretion.
Yes. Federal Decree‑Law No. 40 of 2023 does not restrict mediation to UAE nationals or residents. Foreign parties can both request referral and be subject to a court‑issued referral order. However, foreign parties must ensure that all documents are properly translated into Arabic (or English, depending on the court), that powers of attorney and corporate authority documents are legalised through consular attestation or apostille, and that service of notices complies with UAE procedural rules. The DIFC Courts, which operate in English, may have less onerous translation requirements.
Missing a deadline can have immediate procedural consequences. If a party fails to acknowledge the referral notice, the court may record non‑cooperation. If the mediator nomination deadline passes, the court appoints from its own panel without party input. If position papers are not exchanged in time, the session may proceed without them, placing the non‑complying party at a disadvantage. If the settlement conversion application is filed late, enforcement may be delayed and the settlement could be treated as a private contract only. In all cases, the recommended response is to apply immediately to the court for an extension, explain the reason for the delay, and comply at the earliest opportunity.

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How to Start Court‑referred Mediation in the UAE (step‑by‑step), 2026

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