In the UAE, alternative dispute resolution (ADR) offers three mechanisms of resolving disputes, namely, direct negotiation, mediation and arbitration.

In past years, the advantages of ADR have partly been overlooked due to unfamiliarity with the dynamics of this system, but the use of ADR is increasing exponentially as the benefits of this “legal gem” are being uncovered.

Compared to the traditional local court system, ADR offers a relatively cheap, flexible and quick alternative. ADR may also help repair/maintain business relationships. By reducing the parties' concerns with the legal aspects of resolving a dispute, mediation and arbitration processes allow the parties to focus on the commercial aspects of a dispute.

While mediation and conciliation are voluntary processes that can be used for any sort of dispute, arbitration does not apply to certain disputes such as labour, personal status and commercial agency disputes.