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ADGM deepens push for mediated settlements

Abu Dhabi’s financial free zone courts have signed a strategic memorandum of understanding with The Mediation Hub MENA to widen the use of mediation across the UAE and the wider region, strengthening efforts to make commercial dispute resolution faster, less costly and more accessible for businesses.

The agreement creates a framework for cooperation between ADGM Courts and The Mediation Hub MENA, known as TMH, with a focus on improving access to qualified mediators, expanding awareness of mediation and encouraging businesses to consider negotiated settlements before litigation. It comes as the UAE continues to build a more structured alternative dispute resolution ecosystem for civil and commercial disputes, supported by legislative reforms and specialist centres.

Under the MoU, TMH will nominate suitably qualified mediators to support the ADGM Courts’ Court-Annexed Mediation Scheme. The arrangement is expected to strengthen the Pro Bono Mediators Panel, which gives parties access to experienced practitioners able to assist in confidential settlement discussions before or during court proceedings.

The partnership will also explore training programmes, stakeholder engagement sessions and joint initiatives designed to build professional capacity in the mediation field. One area of cooperation is the potential endorsement of the “UAE Mediation First Pledge”, an initiative that encourages businesses to choose mediation before litigation where appropriate.

Linda Fitz-Alan, Registrar and Chief Executive of ADGM Courts, said the collaboration reflected the court’s focus on mediation as a practical and effective part of dispute resolution. She said parties were increasingly seeking efficient and commercially sensible outcomes, making mediation central to the direction of dispute resolution.

Christine Maksoud, Founder and Executive Director of The Mediation Hub MENA, said mediation was moving from the margins of legal practice towards the centre of how the UAE resolves disputes and builds investor trust. She described the partnership as a step towards making amicable resolution the first option rather than the last resort.

ADGM Courts already operate within a legal system based on the direct application of English common law, a feature designed to give international businesses legal certainty. The courts have also positioned themselves as a technology-enabled forum, with digital systems supporting case management, remote hearings and dispute resolution services.

The Court-Annexed Mediation Scheme was launched in 2019 and has been promoted as one of the first initiatives of its kind in the region. It allows parties within ADGM Courts’ jurisdiction to use mediation either before legal proceedings begin or after a claim has been filed. The process remains confidential and non-binding unless parties reach a written settlement agreement.

The scheme has consistently achieved settlement rates of about 80 per cent year on year since launch, underscoring the commercial appetite for alternatives to full litigation. For companies, mediation can preserve commercial relationships, reduce legal costs and limit disruption to business operations, particularly in disputes involving contracts, finance, construction, real estate and cross-border services.

The MoU also fits into a broader national shift. Federal Decree-Law No. 40 of 2023 on Mediation and Conciliation in Civil and Commercial Disputes provides a statutory framework for consensual and court-referred mediation. It recognises written mediation agreements and settlement arrangements, including those concluded through electronic communications, helping to strengthen enforceability and legal certainty.

Further regulatory measures introduced in 2025 set out rules for private mediation centres and branches of foreign mediation centres operating in the UAE, excluding those licensed within financial free zones unless they conduct activity outside those zones. The framework requires licensed mediation service providers to comply with obligations governing mediators, oversight and disciplinary standards.

For Abu Dhabi, the ADGM-TMH partnership adds another layer to the emirate’s ambitions to compete as a regional centre for finance, investment and legal services. Efficient dispute resolution is a key consideration for investors deciding where to structure transactions, hold assets or resolve commercial disagreements. Mediation can play a supporting role by reducing court backlogs and offering parties more control over outcomes.

The deal also reflects stronger regional interest in professional mediation networks. TMH describes its mission as fostering a culture of mediation in the UAE and the MENA region, bringing together practitioners, legal professionals and businesses to expand the use of negotiated dispute resolution. Its involvement gives ADGM Courts access to a wider pool of mediation expertise while giving mediators a more visible institutional platform.
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