Federal Decree-Law No. (40) of 2023 on Mediation and Conciliation in Civil and Commercial Disputes (justice and juiciary law)

Article (1) 
Definitions  
For the purpose of applying the provisions of this Decree -Law, the following words and 
expressions shall bear the meanings assigned thereto respectively, unless the context 
requires otherwise:  
State  : The United Arab Emirates.   
Federal Decree- Law of 2023 on Mediation and Conciliation in Civil and Commercial Disputes  2 
 Council  : The Federal Judicial Council.  
Department  : The Federal Judicial Inspection Department.  
Center  : A Mediation and Conciliation Center.  
Parties  : Parties to disputes referred to Mediation or Conciliation.  
Mediation  : An optional and alternative method for amicable settlement of 
civil and commercial disputes that have arisen or might arise 
between Parties to a legal contractual or non- contractual 
relationship, by engaging a neutral third party (Mediator), 
whether such M ediation is based on the mutual consent of the 
parties involved or a court order.  
Court -Ordered 
Mediation  : Mediation intended to resolve a dispute after having first resorted to litigation under a referral decision by the Competent 
Court and at any stage  of the case, whether at such court's 
proposal accompanied by the Parties' approval, or at the Parties' request.  
Consensual Mediation  : Mediation that is directly sought by the Parties involved to have a dispute resolved before resorting to litigation, in pursuance of the 
Mediation Agreement.  
Mediation 
Agreement  : A written agreement between the Parties to resort to Mediation 
to have their dispute resolved, whether such agreement takes 
place before or after the dispute.  
Mediator  : A natural or legal person engaged by the Parties or the Center to 
perform a mediation mission for amicable resolution of their 
dispute; provided that such Mediator is listed in the Center's 
Mediator List.   
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 Mediator List  : Lists created by the Department or a local judicial authority, as 
the case may be, and in which names of registered Mediators are listed.  
Private 
Mediator  : A natural or legal person engaged by the Parties to perform a 
mediation mission for amicable resolution of their dispute, 
without being listed in the M ediator Lists.  
Mediation Costs  : Administrative expenses for the Mediation and fees payable to the Mediator for the Mediation.  
Mediator's Fees  : The remuneration payable to the Mediator to perform their mission.  
Competent 
Court  : The trial court having the jurisdiction to hear the case.  
Supervising Judge  : The judge supervising the Center.  
Conciliation  : An alternative method for amicable resolution of disputes that must be sought before a case is registered in the instances 
defined under article (27) hereunder, or while the case is being 
heard before the court at the request of the Parties in the 
instances other than the above ones; where a neutral third party 
(Conciliator) is engaged in an attempt to reach a settlement 
agreem ent signed by, and binding on, the Parties.  
Conciliator  : A person appointed to, or assigned at the Center to settle a 
dispute by way of Conciliation.  
Settlement  : Reconciliation reached by the Parties through Mediation or 
Conciliation, and the minutes thereof shall be approved by the  
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 Supervising Judge.  
Settlement 
Agreement  : A document executed by the Mediator or Conciliator and signed 
by the Parties, and sets out the settlement reached by the Parties 
for amicable resolution of their dispute, in whole or in part.  
Mediation 
and 
Conciliation 
E-Platform  
 : An electronic system through which all Mediation and 
Conciliation procedures are made.

Article (2) 
Establishment of the Centers  
1. The Council or the president of the local judicial authority, as the case may be, may 
establish one or more Centers for Mediation and Conciliation within the jurisdiction of 
the courts of first instance. The establishment resolution shall determine the 
administrative subordination of the Center and the entity in charge of supervising and controlling the same.  
2. The chairman of the Council or the p resident of the local judicial authority, as the case 
may be, shall issue the regulations governing the operation of the Centers, including the 
territorial jurisdiction of each Center, in case of multiple Centers established within the 
jurisdiction of the court of first instance, or may entrust one Center with multiple 
jurisdictions, as the case may be.  
3. The Council or local judicial authority may create one or more Mediation and 
Conciliation E -Platforms, whose procedures and work system shall be determ ined by 
virtue of a resolution of the chairman of the Council or the president of the local judicial  
Federal Decree- Law of 2023 on Mediation and Conciliation in Civil and Commercial Disputes  5 
 authority, as the case may be.  
4. Private Mediation Centers may be established or Foreign Mediation Centers' branches 
may be licensed. The Cabinet shall issue a resolution, at the proposal of the Minister of 
Justice after coordinating with the local judicial authorities, determining their rules of 
procedure, license conditions, licensing authority and registration of Mediators in the 
same, as the case may be.  
5. The Department or local judicial authority, as the case may be, shall develop the general 
policies of the Mediation and Conciliation Centers, and may monitor their work.

Article (3) 
Service of Process  
The service of process methods set forth in the Federal Code of Civil Procedure shall apply to the Mediation procedures, unless otherwise agreed by the Parties.

Article (4) 
Remote Mediation and Conciliation  
The Mediator and the Conciliator may each conve ne Mediation and Conciliation meetings 
remotely using electronic and remote communication means, in accordance with the 
controls and procedures issued under a resolution of the Minister, upon the approval of the 
Council or the president of the local judicial authority, as the case may be.

Article (5) 
Confidentiality of Information  
1. The procedures of both the Mediation and the Conciliation shall be confidential. The  
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 Mediation and the Conciliation or the documents and information presented therein or 
the agreements or compromise made by the Parties involved may not be invoked before 
any court or any entity whatsoever. The Center, the Mediator, the Conciliator, the Parties 
and any person involved in the Mediation and Conciliation may not disclose any 
info rmation received during the Mediation and Conciliation procedures without the 
consent of all Parties involved or where the law requires reporting any crime within the 
scope of the Mediation or Conciliation mission undertaken by the same, as the case may 
be. 
2. The rules of confidentiality and invocation set forth in Clause (1) above shall not apply to the provisions of the Settlement Agreement and the documents necessary to enforce it.  
3. In the event that the Mediator or Conciliator v iolates the confidentiality rules, as set forth 
in this Article, the aggrieved party may resort to the Center to have the disciplinary 
penalties set forth in article (40) hereunder imposed, without prejudice to the provisions 
of civil and criminal liabilit y.

Article (6) 
Prohibitions for the Mediator and Conciliator  
It shall be prohibited for both the Mediator and the Conciliator to:  
1. Serve as an arbitrator or expert in the dispute, or to accept to be an attorney in litigation 
against any of the Partie s regarding the dispute under consideration in the Mediation or 
Conciliation or matters emanating from, even after the conclusion of the Mediation or Conciliation procedures, unless otherwise agreed by the Parties in relation to the 
Mediation;  
2. Give testimony against a Party to the dispute on the same subject of the dispute under consideration in the Mediation or Conciliation and matters emanating from, even after  
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 the conclusion of the Mediation or Conciliation procedures, unless the same is 
authorized by the stakeholder or otherwise agreed by the Parties, unless the testimony is 
related to a crime; and  
3. Perform the role of Mediation or Conciliation in a dispute to which one of the Parties is a 
spouse or a relative by blood or marriage up to t he fourth degree.

Article (7) 
Res Judicata  
1. Subject to the provisions of article (14) hereunder, no person may resort to Mediation in 
case of prior recourse to Conciliation, pursuant to the provisions of this Decree -Law.  
2. Notwithstanding the provisions of article (30) hereunder, a dispute may not be referred 
to Conciliation as long as the Mediation has been sought settle the subject thereof, 
pursuant to the provisions of this Decree -Law.  
  
Section  Two  
Mediation for Settlement of Civil and Commercia l Disputes  
Chapter One  
 Scope of Application

Article (8) 
1. The Mediation may be carried out in respect of all civil and commercial disputes in which the Settlement is possible, in such a manner that  does not contradict the 
applicable legislation, public order or public morals in the State, subject to the provisions of article (28) hereunder, without prejudice to the provisions of local laws governing the 
Mediation provisions.   
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 2. The Mediation may c over the subject of the dispute in whole or in part.  
3. The Mediation provisions set forth in this Chapter shall apply if:  
a. The Mediation procedures are initiated in the State; and  
b. The Mediation is related to an international commercial dispute outside the State 
and the Parties agree to have the same governed by the provisions of this 
Decree- Law.

Article (9) 
Mediation Agreement  
1. The Mediation Agreement may be executed in any of the following forms:  
a. Prior to the occurrence of the disput e, whether the agreement is standalone or is 
included in a particular contract on all or part of the disputes that may arise out between the Parties; or  
b. Subsequent to the occurrence of the dispute, even if a case has been instituted  in 
respect of which.  
2. The Mediation Agreement may be entered into only by a natural person who is legally 
capacitated to dispose of rights, or by a representative of a legal person who is duly 
authorized to enter into the Mediation Agreement; otherwis e, the Mediation Agreement 
shall be null and void. The Mediation Agreement shall not cease to exist upon the death of a Party or termination of its legal personality, in which case, the Mediation Agreement 
may be implemented by or vis -à-vis the legal succe ssor of such Party, unless otherwise 
agreed by the Parties.  
3. The Mediation Agreement shall be executed in writing and signed by the Parties thereto, 
whether under a private or public agreement, contained in messages or other means of 
written communicat ions, made under an electronic communication, pursuant to the  
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 provisions of the legislation governing electronic transactions in the State, or recorded in 
court transcripts, whether the document thereof is in a hard or soft copy format; otherwise it shall be null and void.  
4. An explicit reference in a written contract to the provisions of a standard contract or to 
any other document that includes a Mediation clause shall serve as a written Mediation 
Agreement if suc h reference expressly incorporate such clause into the contract.  
5. The Mediation Agreement shall define the subject of the dispute under consideration in 
the Mediation and shall also indicate the appointment or appointment method of the 
Mediator. The ag reement may also provide that the Mediation procedures are to be 
conducted in a language other than Arabic. In such case, the documents and statements submitted shall be translated into Arabic, pursuant to the provisions of the federal law regulating the t ranslation profession.

Article (10) 
Mediator Lists  
1. The Department or the local judicial authority shall create lists for listing Mediators from amongst those listed in the expert rosters of the Ministry of Justice or local judicial 
authorities, as t he case may be. Such lists may contain (experienced Mediators) to be 
nominated based on a resolution of the Council or the president of the local judicial authority, as the case may be. They shall be selected from amongst retired members of 
the judicial au thority, lawyers enrolled in the rosters of practicing and non -practicing 
lawyers who practiced the profession for at least (5) five years prior to the enrollment in 
the roster of non -practicing lawyers and other high- caliber professionals and 
international experts in the legal and business field, who are known for their expertise, integrity and neutrality.   
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 2. The conditions, procedures and durations of listing and renewal of listing in the 
Mediator Lists and selection and delisting of Mediators shall be established under a 
resolution of the Council or president of the local judicial authority.  
  
Chapter Two  
Consensual Mediation

Article (11) 
Recourse to Consensual Mediation  
1. In order to enforce the Mediation Agree ment, the Parties may directly resort to the 
Center to settle their dispute before a case is instituted.  
2. Subject to the provisions of article (9) above, the Mediation Agreement shall provide for the Mediation language, subject of the Mediation, appointment of, or stipulating the 
method of appointment of Mediator(s) and determining their remunerations and who 
should pay the same; otherwise the agreement shall be null and void.  
3. The commencement of the Consensual Mediation procedures shall suspend le gal and 
judicial time limits, which shall take effect again only upon the conclusion of the 
Mediation, unless the same is concluded by signing the settlement agreement by the 
Parties.

Article (12) 
Procedures of the Consensual Mediation  
1. The application shall be submitted on the designated form to the Supervising Judge, accompanied by the Mediation Agreement and any documents related to the subject of 
the dispute.   
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 2. The application shall include the following:  
a. The desire of one or all of the Parties to resort to the Mediation, an undertaking by 
the Mediation applicant to appear at the scheduled Mediation sessions, and 
providing the appointed Mediator with the necessary information and documents on 
the referred d ispute;  
b. Subject of the Mediation;  
c. Appointment of a Private Mediator under the Mediation Agreement, and may be 
from among those listed in the Mediator Lists; and  
d. The agreed Mediation duration, which may not exceed three (3) months from the date of the mediator's acceptance of the mission, and is renewable for a similar 
duration, but only once, under a decision by the Supervising Judge based on an 
agreement to be concluded by the Parties, in accordance with the same conditions 
set forth in article (9) above.  
3. Subject to the provisions of article (3) above, the Center shall serve upon the rest of the Parties involved the application to implement the Mediation Agreement, and also the 
Private Mediator if they are appointed by agreement.  
4. The Supervising Judge shall have the same powers as the Competent Court in terms of assessing the Mediation Costs, appointment of the Mediator, receiving the Mediator's reports and approving the Settlement Agreement, as set out in Chapter III of Part II 
hereunder.  
5. Where no particular provision is provided in this Chapter, the provisions and procedures 
set forth in Chapter III of Part II hereunder apply to the Consensual Mediation.  
  
 
  
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Article (13) 
Effects of Recourse to the Consensual Mediation  
1. The court, with which a case is filed regarding a dispute already referred to the Mediator 
pursuant to the Mediation Agreement, shall decide that the case be suspended until the 
Mediation Procedures are completed, provided that the defendant invokes the same  
before filing any motion or plea on the case merits, unless the court finds that the 
Mediation Agreement is null and void and is impossible to be implemented.  
2. Instituting the case referred to in Clause (1) above shall not preclude the commencement or continuation of the Consensual Mediation procedures.  
  
Chapter Three  
Court -Ordered Mediation

Article (14) 
Decision on Referral to Mediation  
1. Notwithstanding article (7) above, the Competent Court may issue a decision to refer a 
dispute to Mediation at any stage of the case, based on the court's proposal coupled with 
the approval of the Parties, based on the request of the Parties or pursuant to the 
Mediation Agreement.  
2. The Competent Court shall mention the following details in the decision of referral to 
Mediation:  
a. The Parties' approval to resort to Mediation, their undertaking to appear at the 
scheduled hearings and providing the appointed Mediator with the information and 
documents relating to the dispute  referred to Mediation;  
b. Subject of Mediation;   
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 c. Mediation duration, which may not exceed (3) three months from the date of 
notifying the appointed Mediator of the mission, renewable for a similar duration, only once, under a decision by the Competent Court at the request of the appointed 
Mediator and subject to the approval of all Parties; and  
d. Initial Mediation Costs and how they are divided between the Parties.  
3. Referral decisions issued by the Competent Cour t may not be challenged by any of the 
ordinary or extraordinary methods of challenge.  
4. All legal and judicial time limits shall be suspended once the referral decision is issued 
and shall take effect again after the Mediation is closed. In addition, during the 
Mediation period, the Competent Court may take necessary measures and actions to 
safeguard the rights of the Parties and issue urgent or interim decisions it deems necessary.  
5. Upon the conclusion of the Mediation, the Competent Court shall sch edule a hearing to 
hear the case.

Article (15) 
Appointment of Private Mediator  
1. If the Mediation Agreement designates a Private Mediator, the Competent Court shall 
observe such designation upon issuing the referral decision, and the Center shall notify 
such Mediator of the referral decision within (5) five days from the date of issuing  the 
decision.  
2. The Private Mediator shall sign a document proving their acceptance of the Mediation 
mission, and a document proving their neutrality and independence towards the Parties 
and the subject of the dispute, and that they had not expressed an opinion on the subject 
of the dispute, within three (3) business days starting from the notification date. In the  
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 course of the Mediation, the Mediator shall notify the Center in writing, via an electronic 
means or by hand of any facts or circumstances t hat have arisen or may arise that would 
cause either Party to cast doubts on their neutrality or independence. In which a case, 
the procedures set out in Clause (2) of article (16) hereunder shall be applicable.  
3. The Private Mediator may determine their fees in agreement with the Parties to the dispute. In case the dispute is concluded by a settlement agreement, the plaintiff shall be 
refunded the legal fees paid by the same, as set out in Clause (2) of article (26) 
hereunder.

Article (16) 
Appointment of Mediator from Mediator Lists  
1. In case the Mediation Agreement does not designate a Private Mediator or where the Private Mediator rejects the mission, the Competent Court shall order the Parties to 
appoint a substitute Mediator within th e time limit set by the same. If such appointment 
is impossible, the Competent Court may assign one or more Mediators from among the names listed in the Mediator Lists, and the Parties shall be notified of the same not later than five (5) business days following the issuance date of the referral decision, and the 
Parties shall agree with the appointed Mediator on the latter's fees within (3) three 
business days following the date of being notified of the referral decision.  
2. In case either Party objects to, and requests the disqualification of the appointed 
Mediator, or where the Mediator is removed, steps down, passes away or fails to keep 
performing their mission for any reason whatsoever at any stage of the Mediation, the 
Competent Court shall appoint a substitute Mediator from the ones listed in the 
Mediator Lists, within five (5) business days following the approval date of the Mediator 
disqualification, the date of the Mediator's removal, recusal, death or notification of  
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 being unable to resume their  mission.  
3. In all cases, the appointed Mediator shall abide by the rules of neutrality and 
independence towards the Parties and the subject of the dispute.

Article (17) 
Recusal, Removal and Disqualification of Mediator  
1. The Mediator shall, sua sponte, step down or recuse from proceeding with the 
Mediation procedures if there is any cause between them and either Party to the dispute 
that would make them sense embarrassment, or cause the inability to proceed with the settlement procedures without bias in favor of either Party, unless otherwise agreed.  
2. Both Parties may request the Competent Court to remove the Mediator in any of the following cases:  
a. If the Mediator has a reason that would compromise their neutrality, integrity or independence towards any of the Parties or on the subject of the dispute;  
b. If the Mediator fails or ceases to perform their mission in such a manner that would give rise to unnecessary procedural delay, or the Mediator is found disqualified; and  
c. If the Mediator breaches the confidentiality obligation set out in article (5) above.  
3. The decision issued by the Competent Court shall be unchallengeable by any channel o f 
challenge.

Article (18) 
Mediation Procedures  
1. The Mediator shall notify the Parties to the dispute of the Mediation sessions, and shall notify them or their legal representatives of dates and venues of the Mediation sessions 
through any of the legally prescribed means of notification, including electronic means.   
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 2. The Parties to the dispute shall attend the Mediation sessions e ither in person or through 
their legal representatives under a special power of attorney. If either party is a legal 
person, its legal representative or attorney -in-fact shall attend. In addition, the Parties 
may engage advisors to attend the sessions with  them. The Mediator may determine the 
number of attendees accompanying each Party, as they deem appropriate, for facilitating 
the Mediation depending on the circumstances and nature of the dispute. Persons other 
than those involved in the dispute may atten d the Mediation sessions only with the 
approval of all Parties.  
3. Before the convention of the first meeting, as scheduled by the Mediator, each party to 
the dispute shall, before a reasonable time, furnish to the Mediator a brief statement 
containing a summary of their claims or pleas, accompanied by the supporting 
documents and evidence. Such statements and documents may not be exchanged 
between the Parties.

Article (19) 
Mediation Sessions  
1. In the course of Mediation sessions, the Mediator may ho ld discussions collectively with 
all the Parties involved, discuss with them the subject of the dispute and their claims and 
pleas, and take whatever actions they deem appropriate to bring their points of view 
closer to each other in order to reach an amic able resolution. To that end, the Mediator 
may express their opinion if requested by the Parties, evaluate the documents and evidence furnished by the Parties and introduce judicial principles relating to the dispute 
... etc. for facilitating the Mediation . 
2. The Mediator may hold private sessions with each Party involved in the Mediation, but may not disclose to the other Party any information that comes to their knowledge at  
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 such sessions without the prior approval of the disclosing Party.  
3. As for multiparty disputes, the Parties may, subject to the Competent Court's approval, 
agree that the Mediation procedures continue although a Party abstains, in whatever 
way, from involvement, unless such abstention would adversely impact the proper 
admi nistration of the Mediation and the settlement of their dispute.

Article (20) 
Powers of Mediator  
1. The  Mediator shall have no investigation power. The Mediator may, in agreement with 
all Parties and for the purposes of the Mediation, hear third parties, subject to the latter's 
consent.  
2. Subject to the provisions of article (3) above, in order to perfor m their mission, the 
Mediator may access to papers, documents, records and other evidence and to accept 
any evidence furnished by the Parties, unless the same contradicts the public order or 
morals, without being bound by the Laws of Civil Procedure, Legal Profession and 
Evidence, and without being bound by the normal business hours.  
3. The Mediator may engage the experts recorded in the expert rosters of the Ministry of Justice or local judicial authorities, as the case may be, or any other experts to be  agreed 
by the Parties for providing technical and technological consultancy. The Mediator shall determine the expert's fees and the functions to be performed by him and shall give an 
opinion in respect thereof. The Competent Court shall decide on the expe rt's fees if the 
same is a matter of dispute, in conformity with the provisions of the Law of Evidence on 
Civil and Commercial Transactions.  
  
  
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Article (21) 
Termination of Court -Ordered Mediation  
1. The Mediation shall terminate in any of the following cases:  
a. The Parties sign a settlement agreement;  
b. The Parties agree to terminate the Mediation before reaching a settlement agreement 
for any reason whatsoever;  
c. A Party notifies the Mediator  or the Center that they are not desirous to be involved 
or to continue in the Mediation;  
d. The Mediator notifies the Center, in writing or electronically, that the Mediation is 
infeasible and that there is no possibility to reach a resolution of the dispute;  
e. The Mediator notifies the Center, in writing or electronically, of termination of the Mediation due to the absence of a Party for two consecutive Mediation sessions 
without an excuse; and  
f. Where the Mediation duration expires without renewal.  
2. In all cases, upon the termination of the Mediation, the Mediator shall deliver to each 
Party the stat ements and documents submitted by the same, and may not keep them or 
a copy thereof. The Mediator shall send to the Center a written or electronic report of the 
outcome of the Mediation, within three (3) business days from the date of the 
termination of th e Mediation for any reason. The Center shall provide the Parties and the 
Competent Court, within (3) three days, of the report and the outcome of the Mediation.

Article (22) 
Failure to Reach Settlement  
If the Mediator fails to reach a settlement of the dispute for any reason whatsoever within 
the timeframe specified in the referral decision, the Mediator shall furnish a report to the  
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 Center stating the failure to reach a settlement and describing how far  the parties and their 
attorneys are committed to attending the scheduled sessions. The Parties shall be given a 
statement on the actions taken on the same, and the dispute file shall be referred to the 
Competent Court. In which case, the Competent Court s hall assign the case to hearings for 
reconsideration, with no need for new service of process.

Article (23) 
Ratification of Settlement Agreement  
1. If, upon the conclusion of the Mediation, the Parties reach a settlement of the dispute, in 
whole or in part, the Mediator shall furnish a report to the Center accompanied by the 
settlement agreement signed by the Parties for ratification. In turn, the Center shall 
submit both the report and the agreement to the Competent Court within (3) three 
business days.  
2. The Competent Court shall ratify such agreement and issue a decision terminating the dispute, in whole or in part, as the case may be, at a hearing to be scheduled within (7) 
seven business days from the date of receiving the settlement agreement. A fter the 
ratification, the agreement shall serve as a writ of execution and may be appended by 
the writ of execution, at the request of all Parties or one of them, in the light of the 
provisions of the settlement agreement submitted to the Court. In addition, the ratified 
agreement shall be executed according to the procedures set out in the Federal Law of 
Civil Procedure.

Article (24) 
Objection to Settlement Agreement  
1. The objection to both a ratified settlement agreement and a judicial dispute termination  
Federal Decree- Law of 2023 on Mediation and Conciliation in Civil and Commercial Disputes  20 
 decision may be accepted only by way of filing a case for, or invoking nullity in the 
course of examining the agreement ratification application. In addition, the nullity applicant shall prove any of the following grounds:  
a. If a party to the settlement agreement is incapacitated or with reduced capacity at the 
time of concluding the agreement;  
b. If there is no settlement agreement, the agreement is void or voidable or is made 
after the expiration of the Mediation term; or  
c. If either party fails to present defense due to invalid notification of the Mediation 
procedures or being unaware of the same for any other reason beyond their 
reasonable control.  
2. A judgment rendered by the Court on the nullity case shall be final and is challengeable 
only by way of cassation.  
3. The nullity case may not be heard following the lapse of thirty (30) days following the date on which the judicial dispute termination decision is served to the nullity applicant.  
4. The judgment of n ullity shall terminate the ratified settlement agreement, in whole or in 
part, depending on whether the nullity is full or partial. If a judgment is rendered to 
interpret the part declared null, such judgment shall also be null.  
5. Unless otherwise agreed by the Parties, the Mediation Agreement shall remain effective, 
pursuant the provisions of this Decree -Law, after the ratified settlement agreement is 
nullified.

Article (25) 
Probative Force of Ratified Settlement Agreement  
Subject to article (24) above, a ratified settlement agreement shall be binding on, and 
irrevocable by the Parties, and shall have the same probative force of court judgments.  
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 Hence, the merits and grounds of the same dispute between the same Parties may n ot be 
brought again to the Court, and the Court shall order such probative force sua sponte.

Article (26) 
Mediation Costs  
1. Notwithstanding the provisions of article (29) hereunder, the Parties shall directly pay 
initial Mediation Costs, in full, to t he Center before proceeding with the Mediation 
procedures, as described in the referral decision.  
2. When the Mediator's mission is over and the dispute is fully settled, all Parties may be 
refunded the legal fees paid, and they may be refunded half of t he legal fees paid in case 
the dispute is partially settled.  
3. Subject to Clause (3) of article (15) and Clause (1) of article (16) above, in all cases, the 
Competent Court shall assess the non- agreed final Mediation Costs binding on the 
Parties under an order on petition. Such costs shall be divided and distributed between the Parties either equally or in proportion to their respective interests in the case, at the 
discretion of the Court. The Co urt may also order either or both parties to bear such costs 
in full, and shall authorize the Private Mediator to receive the fees due to them deposited 
in the Court's treasury.  
4. If the Mediator fails to reach a settlement for the dispute, the Competen t Court shall 
issue an Order on Petition obligating the Parties to pay the final Mediation Costs, as 
mentioned in the Mediation Agreement and the referral decision. The order on petition 
shall be issued at the request of the Parties or the Mediator and shall be filed in the same 
Mediation File. The Competent Court may also order the party causing the Mediation to 
be failed, due to their absence of the Mediation sessions, to pay the Mediation costs in 
full.   
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 5. The Parties and the Mediator may each file a g rievance against the costs assessment 
decision, within five (5) business days following the decision notification date. Such 
grievance shall be based on a report to be filed with the case management office and 
shall give rise to the stay of execution of th e costs assessment decision. The grievance 
shall be decided on by a different judge or chamber of the competent court after hearing 
the Grievant's evidence, within a time limit not exceeding (7) seven business days from 
the date of the grievance report. Th e decision made on the grievance shall be final and 
unchallengeable by any channel of challenge.  
  
Section Three  
Conciliation in Civil and Commercial Disputes  
Chapter One

Article (27) 
Scope of Application  
1. Subject to the provisions of article (28) here under, the Center shall be obligatorily 
competent to conciliate the following civil and commercial disputes:  
a. Disputes whose value does not exceed (AED 5,000,000) five million dirhams; and  
b. Disputes to which Parties are spouses or relatives up to the fourth degree, regardless 
of their value.  
2. Litigants may agree to resort to the Center for conciliation in civil and commercial disputes whose value exceeds (AED 5,000,000) five million dirhams, whether before the case is instituted or in the course of hearing thereof.  
  
  
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Article (28) 
Disputes that May not be Settled through Conciliation  
The following disputes do not fall within the Center's competence:  
1. Summary and interim orders and cases;  
2. Cases to which the Government is a party;  
3. Rental cases heard by rental dispute committees;  
4. Labor cases;  
5. Personal status cases; and  
6. Any other cases decided to be heard before a center, committee  or other body with 
similar competence

Article (29) 
Fees  
No fees are payable for disputes and applications submitted to the Center.

Article (30)  
Implications of the Center's Competence of Conciliation  
1. No case may be registered in courts where a Center has been established for cases that 
obligatorily fall within the Center's competence, pursuant to the provisions of Clause (1) of article (27) above without being referred thereto, and a statement of actio ns made 
thereon is issued.  
2. If the Competent Court refers a case heard before it to the Center, based on the 
agreement of the litigants, and the case value exceeds (AED 5,000,000) five million 
dirhams, the chief judge may return the fee paid before it in the event that the dispute is  
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 concluded by Conciliation. If the Center decides to refer the case again to the court, the 
previously paid fee shall be sufficient.  
3. All legal and judicial time limits set forth in laws in force in the State shall be su spended 
from the date of the dispute registration in the Center, and shall take effect again only 
upon the conciliation conclusion.  
 
Chapter Two  
Practicing as Conciliators and Conciliators' Functions and Obligations

Article (31) 
Conditions for Practicing as Conciliators 
By virtue of a resolution by the chairman of the Council or the president of the local judicial 
authority, as the case may be, the conditions for practicing as Conciliators and their 
qualification shall be determin ed, and shall include the following:  
1. Must have not lost his capacity, and must have never been convicted in a crime 
involving moral turpitude or dishonesty, even if he has been rehabilitated;  
2. Must be a person known for his integrity, impartiality  and expertise; and  
3. Must have successfully passed the prescribed courses and tests established by a 
resolution of the Council or the president of the local judicial authority, as the case may 
be.

Article (32) 
Resolution for Practicing as Conciliators 
1. A resolution for appointment or assignment of Conciliators shall be issued by the Minister or the president of the local judicial authority, as the case may be.   
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 2. The Cabinet or the competent local authorit y shall issue a special regulation for salaries 
of appointed and assigned Conciliators, at the proposal of the Council or the president of 
the local judicial authority.  
3. The appointed or assigned conciliator shall take the legal oath of office to perfo rm his 
job with honesty and faithfulness before the president of the chamber of the competent 
judicial authority or his delegate.

Article (33) 
Operating Procedures of Conciliators  
1. The Parties shall attend Conciliation sessions in person or through t heir legal 
representatives. The Conciliator shall schedule the date of each session, and shall notify 
the Parties to the dispute or their representatives of the session date and venue.  
2. The Conciliator shall meet  the Parties at the scheduled sessions and discuss with the 
them the subject of the dispute and their requests and pleas, and may take whatever 
actions he deems appropriate to bring their points of view closer to each other in order 
to reach an amicable re solution. To that end, the Conciliator may express his opinion, 
evaluate the documents and evidence furnished by the Parties and invoke judicial 
principles and other measures that facilitate the Mediation.  
3. Subject to the provisions of article (3) abov e, in order to perform his mission, the 
Conciliator may access to papers, documents, records and other evidence and may take 
actions he deems appropriate, without being bound by the Law of Civil Procedure, the 
Legal Profession Law and the Law of Evidence in civil and commercial transactions, and 
without being bound by the normal business hours.  
4. The Conciliator shall have no investigation power; however, the Mediator may, in 
agreement with all Parties and for the purposes of the Conciliation, hear third  parties,  
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 subject to the latter's consent.  
5. Subject to the agreement of the Parties, the Conciliator may engage the experts recorded 
in the expert rosters or those who are agreed by the litigants to settle the disputes 
presented thereto for providing t echnical and technological consultancy. The Mediator 
shall determine the expert's fees and functions to be performed by him and shall give an opinion in respect thereof, pursuant to the provisions of the Law of Evidence on Civil and 
Commercial Transactions .

Article (34) 
Recusal, Removal and Replacement of Conciliator  
1. The Conciliator shall recuse himself from the mission if he feels embarrassment or is a blood relative of a party up to the fourth degree.  
2. The Supervising Judge may remove and replace the Conciliator, at the request of either Party, and the decision shall be decided on within (3) business days following the date of 
submission, in any of the following cases:  
a. If the Conciliator fails to pe rform his mission;  
b. If the Conciliator fails or ceases to perform his mission in such a manner that would give rise to unnecessary procedural delay, and fails to recuse; and  
c. If the Conciliator has a relationship to either Party that may raise doub ts on his 
neutrality or independence, whether before or during the Conciliation.  
3. The Supervising Judge may, sua sponte, decide to remove and replace the Conciliator 
where any cases of disqualification set out in Clause (2) above is found.  
4. In all cases, the decision issued by the Supervising Judge on the removal or replacement of the Conciliator is unchallengeable by any channel of challenge.  
   
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Article (35) 
Conciliation Timeframe 
The Center shall resolve the dispute by Conciliation within at  most (21) twenty -one business 
days from the date one which the Parties appear before him, and may be extended for 
further similar timeframe under a reasoned decision by the Conciliator, unless the Parties 
agree on a further similar timeframe.  
  
Chapter Three 
Termination of Conciliation Procedures

Article (36) 
Cases of Conciliation Termination  
The Conciliation procedures shall terminate in any of the following cases:  
1. The Parties approve the settlement agreement;  
2. A party or all the Parties involved notify the Conciliator that they have no desire to 
continue in the Conciliation procedures;  
3. The Conciliator notifies the Parties that the continuation of the Conciliation procedures 
is unfeasible for being unserious  or for another reason; or  
4. Expiry of the Conciliation timeframe.

Article (37) 
Failure of Conciliation  
If the dispute fails to be resolved by Conciliation due to the absence of a party or for any 
reason whatsoever or for failure to reach a settlement , the Parties shall be given a statement 
on actions made thereon, and the file shall be referred to the Competent Court.   
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Article (38) 
Settlement Established Before the Conciliator  
1. If the settlement is established between the Parties, in whol e or in part, the same shall be 
recorded in a minutes to be signed by the Parties and the Conciliator. Such minutes shall 
be approved by the Supervising Judge, and shall have the legal force of the writ of 
execution and the probative force of court judgeme nts, and shall not be challenged 
through any channel of challenge.  
2. Upon the request of all Parties or any of them, the minutes may be accompanied by the writ of execution, at no charge, and shall be enforced according to the procedures set out 
in the Federal Law of Civil Procedure.  
  
Section  Four  
Final Provisions

Article (39)  
Code of Professional Conduct for Mediators and Conciliators 
The Council or the president of the local judicial authority, as the case may be, shall issue the Code of Professional  Conduct for Mediators and Conciliators.

Article (40) 
Disciplinary Measures 
1. Should the Mediator or Conciliator breach any of their obligations, as set out in this Decree- Law, the aggrieved party may resort to the Center to take disciplinary measures 
against them, without prejudice to their civil and criminal liability.   
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 2. The sa me disciplinary measures and sanctions set under the Law Regulating Expertise 
Profession before the federal judicial authorities or the local laws regulating expertise 
activities, as the case may be, shall be applicable to the discipline of Mediators.  
3. The Minister of Justice shall issue, upon the approval of the Council or the president of 
the local judicial authority, as the case may be, a special regulation on the controls and 
procedures of discipline of Mediators.  
4. The disciplinary sanctions se t forth in the HR Law of the Federal Government or local 
laws governing a public office, as the case may be, shall apply to Conciliators.

Article (41) 
Provisions Governing the Private Mediator's Functioning  
As for matters where no particular provision is  stipulated in the Mediation Agreement, the 
provisions governing the Mediator's functioning set out in this Decree -Law shall apply to the 
Private Mediator.

Article (42) 
The Implementing Resolutions  
The Minister shall, subject to prior approval of the Cou ncil or the President of the local 
judicial authority, as the case may be, issue the resolutions necessary for implementing the provisions of this Decree -Law.

Article (43) 
Repeals  
1. Federal Law No. (17) of 2016, Establishing Mediation and Conciliation Centers in Civil  
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 and Commercial Disputes, as amended, shall hereby be repealed.  
2. Law No. (6) of 2021, on Mediation for Settlement of Civil and Commercial Disputes, 
shall hereby be repealed.  
3. The regulations and resolut ions issued in pursuance of the provisions of Federal Law No. 
(17) of 2016, as amended, and Law No. (6) of 2021, shall remain effective, until the 
regulations and resolutions necessary for implementing the provisions of this 
Decree- Law are issued, in so far as they do not contradict the provisions thereof.  
4. Any provision repugnant to or in conflict with the provisions of this Decree -Law shall 
hereby be repealed.

Article (44) 
Publication and Entry into Force  
This Decree -Law shall be published in the Of ficial Gazette, and shall enter into force (90) 
ninety days following its publication date.  
 
 
  
Mohammed bin Zayed Al Nahyan  
President of the United Arab Emirates  
 
 
 
Issued by Us at the Presidential Palace – Abu Dhabi  
Dated: 13 th Rabi' Al -Awwal 1445 AH,  
Corresponding to: 28 th September 2023 AD