ADR offers a range of efficient and flexible approaches to dispute resolution ranging from mediation through adjudication to arbitration. Over recent decades, the UAE has established itself as a hub for ADR. It offers a robust legal framework which supports the enforcement of ADR determinations whilst several regional institutions assist parties with the procedural aspects of ADR throughout the process.

What is Alternative Dispute Resolution?

ADR is a wide range of mechanisms available to parties to resolve disputes outside the traditional court system. These mechanisms allow parties to discuss,tailor and agree on the most suitable dispute resolution mechanism contracutally and in advance thereby promotingh cost-effective, efficient and confidential outcomes.

The Key ADR Mechanisms

Negotiation: Negotiation allows parties to resolve disputes through dialogue but is predicated on a willingness on the part of both parties to compromise. This is often the first step in any dispute resolution process.

Mediation: In mediation, a neutral mediator will facilitate discussions between the parties with the aim of guiding a collaborative approach to finding a mutually acceptable resolution of a given conflict. Mediation is often chosen where an ongoing business relationship is envisaged as the method encourages collaboration over confrontation.

Arbitration: In arbitration a neutral third party individual or a tribunal nominated by the parties and appointed by the regulating institution will deliver a binding and legally enforceable award based on the evidence and arguments presented. This method is especially common in commercial and international disputes, offering a structured yet private alternative to court proceedings.

Why ADR

ADR offers several key advantages to parties:

Cost Efficiency: ADR is often cheaper than litigation.

Procedural Efficiency: ADR processes can be expedited by agreement and may reach resolution within months rather than years.

Confidentiality: ADR proceedings are private and confidential thereby ensuring that sensitive information remains protected and out of the public domain.

Flexibility: Parties to ADR generally control the dispute resolution process and this may include the right to choose an arbitrator and to agree a procedural timeline and the applicable procedural rules.

Business Continuity: Collaborative ADR mechanisms can help maintain positive working relationships and support ongoing commercial partnerships.

ADR in the UAE

The UAE is well-established itself as a global leader in ADR through progressive developments in arbitration and mediation. The Federal Arbitration Law (2018) governs domestic and international arbitration, incorporating principles from the UNCITRAL Model Law. It provides clarity on critical aspects such as the enforcement of awards and the conduct of arbitration proceedings and aligns the UAE’s arbitration framework with international standards and reinforced the enforceability of awards under the New York Convention. 

The introduction of the DIAC Rules 2022 expedited arbitration procedures and the introduction of  and specialised digital courts confirm the UAE’s commitment to a cutting-edge modern ADR infrastructure. 

The enactment of the Mediation Law in provides a robust parallel framework for the cooperative resolution of disputes which is further supported by centres including the DIFC-LCIA Mediation Centre and the Mediation Hub. 

These legislative and structual reforms described confirm the strategic vision of the UAE to provide efficient, technology-driven and globally competitive dispute resolution services and will position the jurisdiction as a as a leading hub for ADR in both the Middle East and in international markets.

Arbitration in the UAE - Key Consideration

A key factor in, and advantage of, arbitration in the UAE is the selection of the right arbitrator for nomination and subsequent appointment in proceedings. 

The selection of an arbitrator is one of the most important decisions made in an arbitration.  Parties often ask what factors to consider and how to find information that may assist them in assessing a candidate for nomination to a Tribunal.

Parties consider numerous factors in selecting an arbitrator for a dispute.  Among the most important are: 

1. the expertise of the arbitrator in the sector in which the dispute arises;
2. the arbitrator's experience in arbitration in the region an in particular with DIAC or other regional institutions;
3. the arbitrator's experience in the subject matter or specific area of law raised by the case;
4. language capability, including the ability to read documents relevant to the proceeding, the ability to communicate with counsel and the parties, witnesses and experts, and the capacity to write clear reasons for decisions and awards; 
5. an absence of conflict of interest, and full disclosure of any matter that might be relevant to assessing potential conflicts.  It should be remembered that party-appointed arbitrators are not advocates of the position of the party that appointed them and they must remain independent and impartial at all times;
6. ability to work well with the other Tribunal members; and
7. availability to address the case expeditiously, including the capacity to travel to hearings and to issue rulings in short order.

Parties and their counsel consider a wide variety of sources when selecting a potential arbitrator. These include: 

1. the arbitrator's curriculum vitae, and in particular their education and work experience;
2. decisions and awards issued by the arbitrator; and 
3. the views of counsel who have appeared before the arbitrator under consideration.

Contact Bolz Arbitration for Effective Arbitration Advice in the MENA Region

Anja Bolz is an independent chartered arbitrator has been involved in arbitration cases in construction, real estate, and commercial disputes since 2009 across the MENA region and internationally.

For a consultation or more information on arbitration in the UAE, contact Bolz Arbitration today.