When both parties seek to settle an ongoing issue between them, they move towards signing a settlement agreement that includes all the rights and obligations of each party. This settlement can be concluded through a settlement agreement signed either before, during or after the litigation stage, as follows:

• The settlement can occur before litigation once one of the parties expresses the desire to enter negotiations for settlement and the other party agrees to settle the matter amicably to avoid a legal dispute.

• The settlement can take place during the litigation stage, especially if the defendant expresses the desire to settle.

• The settlement can occur after a final judgment on the matter, if both parties agree to avoid initiating an enforcement case against the debtor who has been sentenced.

• ADGM: Abu Dhabi Global Market.

• DIFC: Dubai International Financial Centre.

• JAFZA: Jebel Ali Free Zone.

• UAE: United Arab Emirates.

In the United Arab Emirates (UAE), amicable dispute resolution is increasingly embraced as a preferred legal and cultural approach to resolving conflicts. Whether involving commercial entities, individuals, or government institutions, settlement agreements offer a time-efficient, cost-effective and private alternative to litigation.