Introduction
The UAE government has promoted mediation-related solutions for commercial and civil disputes by enacting legislation to promote mediation. In 2023, the UAE government passed the Federal Decree-Law No. 40 of 2023 on Mediation and Conciliation in Civil and Commercial Disputes. The Law offered comprehensive provisions for the process of Mediation and Conciliation and even regulated the actions of the Mediators to make the process trustworthy for the litigants.
In furtherance of the same objective, the UAE government has issued a Cabinet Resolution No. (56) of 2025 Regarding Private Mediation Centers and Branches of Foreign Mediation Centers. This Resolution shall apply to private mediation centers and branches of foreign mediation centers in the State that are licensed to provide mediation services in civil and commercial disputes.
Licensing and Legal Forms of Private Mediation Centers
The Cabinet Resolution prohibits a private mediation center or a branch of a foreign mediation center from being established or managed without obtaining a license.
A mediation center should be established in one of the following forms to be granted a license:
• Sole Proprietorship
• General Partnership
• Limited Liability Company
• One Person company with Limited Liability
In addition to the above, the private mediation center must have an independent and suitable premises to host the disputants and provide mediation services, equipped with office furnishings and electronic systems, including an electronic information system and necessary IT tools.
Branches of the Foreign Mediation Center
In order for a branch of a foreign mediation center to be licensed, they must have a valid license for the headquarters outside the country. Further, there is a need to provide proof that the headquarters has provided mediation services for not less than five (5) years at the time of submitting the licensing request in the UAE. The Licensee must also submit the headquarters’ overall operations and achievements in the field of mediation services.
Obligations of mediation centers
Both the private mediation centers and branches of foreign mediation centers comply with the following:
• Display their license at a conspicuous and easily accessible location,
• Notify the government-appointed committee of the mediators working at the center,
• Establish an electronic database of dispute-related information,
• Refrain from assigning mediation services to anyone other than the mediators listed in the center’s or branch’s register.
• Setting clear procedures for the mediation process and complying with the communication requirements of the parties involved, and
• Providing the local judicial department with all required documents, records, data, and information.
Conclusion
Both of these mediation centers shall be subject to the supervision and oversight of the local judicial department or authority. Such authority shall also maintain a register of such centers in the country. The UAE government, by providing licensing requirements for the private mediation centers and branches of foreign mediation centers, has showcased its willingness to promote alternate dispute resolution measures in the country. Branches of foreign mediation centers in the country will add trust for the foreign entities resolving disputes in the country.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Fauzia Khan
