What this guide covers
arbitrateAD offers standalone conciliation proceedings separate from arbitration. A settlement reached through arbitrateAD conciliation can be recorded as a consent award enforceable under the NYC Convention — giving it the binding force of an arbitral award rather than an ordinary contract.
arbitrateAD Conciliation Rules — overview
arbitrateAD's Conciliation Rules provide for administered conciliation — a structured, facilitated negotiation in which a neutral conciliator assists the parties to reach a negotiated settlement. Conciliation under these rules is consensual (both parties must agree to commence) and confidential. The conciliation proceedings are separate from any pending or future arbitration.
Unlike arbitration, conciliation does not produce a binding decision. The conciliator may suggest terms of settlement (non-binding) but has no power to impose a result. If the parties reach agreement, they sign a Settlement Agreement. If they do not reach agreement, either party may proceed to arbitration — but nothing said in the conciliation is admissible in any subsequent arbitration (confidentiality protection).
Initiating conciliation and procedure
Either party may request conciliation by filing a Request with arbitrateAD's Secretariat, setting out: the names and addresses of the parties; a brief description of the dispute; and a statement that the requesting party invites the other party to conciliate. Conciliation commences only when the Respondent accepts the invitation in writing.
The Centre appoints a conciliator (unless the parties nominate one) from the arbitrateAD panel or a mutually agreed candidate. The conciliator meets with both parties jointly and, where appropriate, separately (caucus sessions). The process is flexible — no procedural rules govern the sessions; the conciliator adapts the process to the parties' needs. A typical arbitrateAD conciliation process runs 1–3 months for commercial disputes.
Converting settlement to a consent award
If the parties reach a settlement through arbitrateAD conciliation, they have a choice: (i) record the settlement as a simple Settlement Agreement (contractual — enforceable as a contract); or (ii) convert the settlement into an arbitral consent award (enforceable under the NYC Convention).
To obtain a consent award, the parties must constitute an arbitral tribunal (usually a sole arbitrator by agreement) and request the tribunal to record the settlement as an award on agreed terms. The tribunal must be satisfied the settlement is lawful before issuing a consent award. The consent award is then enforceable in all 172 NYC contracting states — far more powerful than an ordinary contract enforceable only through litigation.
This mechanism is significant for cross-border commercial settlements: a consent award from an Abu Dhabi-seated arbitrateAD arbitration is enforceable in Singapore, London, New York, and most commercial jurisdictions without relitigating the merits.
Confidentiality protection
arbitrateAD Conciliation Rules provide strong confidentiality protection: all statements made, documents produced, and offers made in the conciliation proceedings are confidential and may not be disclosed to third parties or used as evidence in any subsequent proceedings (including arbitration). Neither the conciliator nor any party may call the conciliator as a witness in subsequent proceedings. This creates a safe environment for frank discussions and commercial exploration of settlement — parties can make concessions in conciliation without those concessions being used against them in arbitration.
UAE Federal Law on mediation and settlement (Federal Law 26/1999 and the Commercial Transactions Law) reinforces confidentiality of settlement negotiations. Agreements reached through formal ADR processes are considered binding contracts.
Practical checklist
- Both parties must consent — unilateral initiation of conciliation does not bind the counterparty
- Include a conciliation clause in the original contract (before disputes arise) — agreed conciliation is faster and cheaper than litigating whether to conciliate
- Consent award option: if the parties reach settlement and have cross-border enforcement concerns, always convert to a consent award rather than a plain settlement agreement
- Counsel should not attend caucus sessions unless invited by the conciliator — conciliation works best when business principals engage directly
- Confidentiality reminder: brief your client before the conciliation session — nothing said in conciliation can be used in subsequent arbitration, so frank commercial discussion is protected
- Conciliator selection: for construction or technical disputes, request a conciliator with sector expertise — a technically informed conciliator adds more value than a generalist
What we'd typically advise
We recommend including a conciliation step in multi-tier dispute resolution clauses in commercial contracts. The arbitrateAD conciliation process is typically 6–8 weeks — the cost is a fraction of arbitration, and most disputes that go to conciliation settle. The combination of arbitrateAD conciliation followed by arbitrateAD arbitration (if conciliation fails) provides a streamlined dispute resolution pathway within a single institution under a single set of rules.
Frequently asked questions
Can arbitrateAD conciliation be used where no conciliation clause exists in the contract?
Yes. The parties can agree to arbitrateAD conciliation ad hoc, even without a pre-existing clause, as long as both parties consent in writing. arbitrateAD can administer the conciliation once both parties agree to use its rules.
What is the cost of arbitrateAD conciliation?
Conciliation fees are significantly lower than arbitration. The filing fee and conciliator fee are set by the Centre on a case-by-case basis, typically a fraction of arbitration costs. For commercial disputes, total conciliation costs are often AED 30,000–80,000 including conciliator fees.
Can the same person act as conciliator and then as arbitrator if conciliation fails?
Generally no. To protect the integrity of the process and the confidentiality of the conciliation, the person who served as conciliator should not subsequently serve as arbitrator in the same dispute — this would compromise the confidentiality of caucus sessions. arbitrateAD rules provide this protection.
Is a settlement agreement from conciliation binding even without a consent award?
Yes — a signed Settlement Agreement is a binding contract enforceable through UAE courts. However, enforcement as a contract requires litigation if the counterparty defaults. A consent award is enforceable without relitigating the merits, making it significantly more powerful for cross-border recovery.
Can conciliation run in parallel with ongoing arbitration?
Parties may agree to conciliation (mediation) even after arbitration has commenced. The tribunal typically stays proceedings for an agreed period to allow settlement negotiations. If settlement is reached, the parties may request the arbitral tribunal to issue a consent award recording the settlement.
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Published 20 May 2026. General information only — not legal advice. Contact us for matter-specific advice.