How to settle a commercial dispute without going to court

Your options and how each one works

1. 1

   Understand conciliation before you commit

   Conciliation is conducted through a mediator who is accredited by the centre or selected by both disputing parties. Keep one thing clear: the conciliator's decision is not considered binding, but it has the nature of a recommendation, a proposal for solving the dispute. It is a way to reach a settlement you both accept, not a verdict imposed on you.

   Documents:ContractDispute summary
2. 2

   Consider the Dubai International Arbitration Centre (DIAC)

   Dubai holds an autonomous arbitration institution known as the Dubai International Arbitration Centre (DIAC), which replaced the former Centre for Commercial Conciliation and Arbitration. If your contract points to arbitration in Dubai, this is the body most likely to handle it. Check current rules and any fees on the authority's website, as amounts change.

   Documents:Arbitration clauseContract
3. 3

   Check whether IICRA fits an Islamic-finance dispute

   The International Islamic Centre for Reconciliation and Arbitration (IICRA) is an international, independent, non-profit organisation of the Islamic finance industry. It settles financial and commercial disputes that arise between financial or business institutions and their clients, or between them and third parties, that choose to apply the provisions of Islamic law and sharia principles in resolving disputes through reconciliation or arbitration. Note that agreement of the parties is required for IICRA's jurisdiction.

   Documents:Written agreement to IICRAContract
4. 4

   Know the other institutions across the UAE

   Options are not limited to Dubai. In Abu Dhabi, the Abu Dhabi Chamber established the Abu Dhabi Commercial Conciliation and Arbitration Centre in 1993 to settle trade disputes through conciliation and arbitration. Elsewhere, there is the Sharjah International Commercial Arbitration Centre (Tahkeem). Which one applies usually depends on what your contract specifies.

   Documents:ContractJurisdiction clause
5. 5

   Confirm the current details before you file

   Rules, fees and timeframes are set by each centre and can be updated, so treat any figure you hear second-hand with caution. Before you start, confirm the up-to-date requirements and costs directly on the relevant authority's website rather than relying on assumptions.

Fees and timelines may change — verify with the official source.

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