In the United Arab Emirates (UAE), settlement procedures play a vital role in resolving civil and commercial disputes efficiently, often avoiding lengthy litigation. The UAE legal system encourages parties to reach amicable settlements at any stage of proceedings, whether before filing a case or during court hearings. Settlements can be formalised through a written agreement or recorded in court minutes, which then carry the force of an enforceable judgment. The process emphasises good faith negotiations, fairness, and the finality of agreements once approved by the court.

Key points discussed in this Practice Note include the legal framework governing settlements, the role of courts in endorsing settlement agreements, procedures before mediation and reconciliation committees, and the enforceability of settlement judgments.

The principal legislation dealing with settlement procedures include Federal Decree-Law No. 42/2022 On the Promulgation of the Civil Procedure Law, particularly its provisions on amicable settlement and mediation, and relevant rules of mediation and conciliation committees established within the UAE judicial system.

• Amicable settlement: A resolution reached voluntarily by the parties through negotiation or mediation, reflecting mutual consent and good faith.