Why the Middle East is emerging as a leading mediation hub

Important recent developments include the United Arab Emirates’ (UAE) decision to accede to the Singapore Convention on Mediation, new Saudi Centre for Commercial Arbitration (SCCA) mediation rules, standalone Qatar International Centre for Conciliation and Arbitration (QICCA) conciliation rules and the expansion of mediation services in financial free zones such as the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM). The region has increasingly aligned itself with international alternative dispute resolution (ADR) trends, while developing frameworks tailored to local commercial realities.

Why mediation is gaining ground

Commercial factors are driving this shift. Businesses face increasing pressure to reduce dispute costs, particularly in long-term commercial relationships where preserving business ties and maintaining operational continuity are critical. There is greater board-level focus on efficient dispute management, and a growing desire for confidential resolution processes that protect commercial reputations.

At a regional level, major government investment programmes, including Saudi Vision 2030, UAE infrastructure and energy projects, Qatar's continuing development programme and Oman Vision 2040, are generating a high volume of complex commercial relationships and, inevitably, disputes.
Increasing cross-border trade and investment within the Gulf Cooperation Council (GCC) is adding further momentum, alongside the growing sophistication of regional dispute resolution frameworks. Globally, there is increasing international acceptance of mediation, supported by the development of enforcement mechanisms through the Singapore Convention. Businesses are also seeking flexible outcomes — such as payment plans, contract amendments and project restructuring — that courts and arbitral tribunals cannot always provide.

The Singapore Convention and the GCC

The Singapore Convention on Mediation facilitates cross-border enforcement of international commercial settlement agreements resulting from mediation. The GCC now contains a critical mass of contracting states, with five of its six member states having acceded to the Convention.

Saudi Arabia and Qatar both ratified the Convention in 2020, Bahrain acceded in 2025, Oman formally acceded in March 2026, and the UAE in June 2026, with it entering into force in each jurisdiction six months after accession. As for the wider Middle East region, Israel joined in 2025, while Jordan, Iran, Iraq and Egypt have signed but not yet ratified.

With five GCC states now party to the Singapore Convention, the framework for the cross-border enforcement of mediated settlement agreements continues to strengthen, making mediation an attractive option for parties seeking to resolve commercial disputes.

New institutional rules and court-sponsored support

In Saudi Arabia, a new edition of the SCCA mediation rules entered into force on 1 August 2026. The updated rules introduce an expanded procedural framework, stronger confidentiality provisions, enhanced provisions on mediator appointment and replacement, recognition of electronic communications and electronic settlement agreements, clearer settlement agreement provisions, more flexible termination mechanisms, and a modernised fee structure. The changes demonstrate Saudi Arabia's ambition to become a leading ADR hub and complement its participation in the Singapore Convention.

In Qatar, QICCA introduced dedicated standalone conciliation rules that took effect in 2026. Arbitration and conciliation have been separated for the first time, alongside electronic filing mechanisms, greater procedural flexibility, a dedicated framework for conciliator appointment, and alignment with international mediation and conciliation practice. These developments reflect a growing institutional recognition of consensual dispute resolution and complement Qatar's broader statutory mediation framework established under Law No. 20 of 2021.

In the UAE, DIAC introduced its inaugural standalone Mediation Rules in 2023, with the rules entering into force on 1 October 2023. The rules seek to promote mediation through a streamlined mediation process, robust confidentiality protections and flexibility for parties and mediators in managing proceedings. More recently, in January 2026, arbitrateAD issued its own mediation rules, further enhancing its ADR offering.

Alongside arbitral institutions in the region, regional court systems are also supporting the mediation process. The DIFC courts established a dedicated mediation service centre under a new legal framework in 2025. Registered members of the DIFC Courts Panel of Mediators facilitate the services, which are conducted in accordance with the Mediation Service Centre Rules. The process is fully electronic with a pathway for parties to opt for directly enforceable settlements as Mediation Orders via DIFC Courts’ Enforcement Writs.
In Abu Dhabi, mediation was embedded within the ADGM courts framework through its court-annexed mediation scheme, launched in 2019. The provision allows for mediation before and after commencement of court proceedings and reports an approximate 80% settlement rate.

Practical implications for commercial parties

For businesses operating in the region, mediation offers several advantages. It is typically less expensive than arbitration or litigation, reduces management time and external legal spend, and can resolve disputes in weeks rather than years.

Mediation also offers commercial flexibility and outcomes that courts and arbitral tribunals cannot always deliver. Solutions can incorporate payment plans, contract amendments, future business arrangements, and project restructuring.

Mediation also offers greater privacy than court proceedings, helping to protect commercial reputations. A major advantage compared to litigation or arbitration proceedings is the preservation of commercial relationships that a mediated settlement can offer. With the Singapore Convention supporting cross-border enforcement, and a growing number of Middle Eastern countries participating, the enforcement landscape for mediated settlements is improving rapidly.

Parties should consider including multi-tier dispute resolution clauses in their contracts, incorporating a mandatory negotiation stage followed by mediation before arbitration or litigation. Key drafting points include the choice of institution, clearly defined time limits for each stage, and a mediator appointment mechanism.
Where the Singapore Convention is relevant, parties should expressly opt into the Convention where required by that state for enforcement. This is particularly important in jurisdictions such as the UAE, which has adopted the Convention with the opt-in reservation, meaning that it will only apply to settlement agreements where the parties have explicitly agreed to its application.

For businesses operating across the GCC and wider Middle East, the key consideration is not whether mediation has a role to play, but how careful contractual drafting and early settlement strategies can be incorporated into broader risk management planning from the outset. As mediation gains momentum across the Middle East, its success will depend not only on treaties, laws and institutional rules, but also on those advising parties throughout the lifecycle of disputes. Legal advisors, both in-house and external, have an important role to play in ensuring that businesses understand and seriously consider mediation before embarking on costly and time-consuming proceedings.