Mediation vs Arbitration: Which Is Right for You?

Introduction to Mediation and Arbitration in Dubai

When conflict arises, mediation and arbitration are two key paths to consider in Dubai. Disputes are an inevitable part of business and personal relationships — but how they are resolved can make all the difference. In the UAE, both mediation and arbitration offer alternatives to lengthy court proceedings. While both aim to achieve resolution outside the courtroom, they operate very differently. Understanding these differences can help you choose the method best suited to your case.

1. What Is Mediation?

Mediation is a voluntary, confidential process where a neutral third party — the mediator — facilitates communication between disputing parties. The mediator doesn’t decide who is right or wrong but helps the parties explore solutions and reach a mutually acceptable agreement.

Mediation is often used in:

• Commercial or partnership disputes

• Employment or workplace conflicts

• Family and inheritance matters

• Real estate or tenancy issues

Key features:

• Voluntary and confidential

• Non-binding unless parties reach an agreement

• Focused on preserving relationships

• Usually faster and less costly than arbitration or court

2. What Is Arbitration?

Arbitration is a formal dispute resolution process where a neutral third party — the arbitrator — hears evidence, reviews documents, and issues a binding decision known as an arbitral award. Arbitration resembles a private court proceeding and is governed by law, notably the UAE Federal Arbitration Law (No. 6 of 2018) and institutional rules such as DIAC or ICC.

Arbitration is often preferred for:

• Construction and engineering disputes

• Cross-border commercial contracts

• Complex or high-value claims

• Cases requiring enforceable decisions

Key features:

• Binding and enforceable award

• Formal procedure, similar to litigation

• Parties can select arbitrators with specific expertise

• Typically more expensive than mediation but faster than court

3. The Main Differences of Mediation and Arbitration (in Dubai and beyond) at a Glance

4. Choosing the Right Process

The best choice depends on your goals, time, cost tolerance, and relationship with the other party:

• Choose Mediation if you:

  • Value maintaining a relationship or partnership.

  • Want a quick, flexible, and private solution.

  • Prefer to have control over the outcome.

• Choose Arbitration if you:

  • Need a legally binding and enforceable outcome.

  • Face complex or high-stakes disputes.

  • Want an expert to decide the matter privately instead of a court.

5. The Modern UAE Approach

The UAE increasingly encourages amicable settlements before litigation. Institutions such as DIAC and the DIFC Courts often invite parties to mediate before arbitration or trial. This reflects a wider global trend — encouraging parties to save time and costs through dialogue.

At Rubert & Partners, we combine experience in both mediation and arbitration, helping clients assess when each method is most effective and how one can lead to the other.

Conclusion to Mediation and Arbitration in Dubai

Both mediation and arbitration aim to resolve disputes efficiently — one through dialogue, the other through decision. The right choice depends on what you value most: control or finality, collaboration or closure.

At Rubert & Partners, we guide you through every stage — from negotiation to mediation to arbitration — ensuring that your dispute finds the resolution it deserves.

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We hope this guide helps you understand the alternative dispute resolutions options. If you have questions about your specific situation, we are here to assist.

For more practical content in English, explore our Publications and the Videos by our Partner, Maria Rubert.

Disclaimer: The information on this page is general and not legal advice. Please seek tailored legal advice for your case.