Legal & RegulatoryMediation
Synonyms: conciliation، facilitated negotiation، neutral third-party mediation، ADR mediation، amicable settlement facilitation
Last updated: 2026-10-05
Short Definition
Resolving dispute with help of neutral third party proposing non-binding solutions, faster and cheaper than litigation, and based on both parties’ consent.
Overview
Mediation is a voluntary or mandatory dispute resolution method in which a neutral third party, called the mediator, intervenes to facilitate communication between the disputing parties and help them reach a mutually acceptable solution without holding the power to impose a solution. It differs from arbitration in that its outcome depends on the parties' agreement rather than a binding decision.
In Saudi Arabia, the Saudi Real Estate Arbitration Center under REGA offers a Reconciliation for Ejar beneficiaries service that ends disputes through conciliation by mutual consent; it requires a unified lease documented on Ejar and excludes claims for rent or eviction when the lease is an executive instrument. The Ministry of Justice’s Reconciliation Center also offers reconciliation through the Taradhi platform, whose reconciliation documents are executive instruments. Settlement in rental disputes is generally voluntary, and REGA has no tenancy mediation committees.
Mediation is gaining increasing importance in the Saudi real estate market for several reasons: its speed compared to litigation (weeks versus months or years), its preservation of the relationship between parties particularly in long-term tenancy contracts, its savings on court costs and legal fees, and the flexibility of its solutions, which can transcend what courts may award with their limited range of judgments.
⚖️ Legal Basis
Amicable resolution of Saudi rental disputes rests on the settlement contract provisions of the Civil Transactions Law (Article 391 onwards), the Reconciliation for Ejar beneficiaries service of the Saudi Real Estate Arbitration Center under REGA, and the Ministry of Justice’s Taradhi platform. The Execution Law treats reconciliation records issued by authorised bodies or approved by the courts as executive instruments.
💡 Practical Example
A dispute arose between Al-Riyadh Hospitality Company and the owner of a commercial villa in Al-Yasmin district, Riyadh, over the interpretation of a major maintenance clause involving repair costs of 95,000 SAR. Because their lease was documented on Ejar, the company applied to the Reconciliation for Ejar beneficiaries service at the Saudi Real Estate Arbitration Center instead of litigating, and the owner agreed to take part. In the first session, the conciliator clarified that both parties bore some responsibility under the contractual terms. In the second session, the parties reached an agreement: the company would bear 40,000 SAR and the landlord 55,000 SAR, with the contract extended by one additional year at the same rent. Both parties signed the reconciliation record, and the lease was then renewed on Ejar.
⚠️ Common Mistakes
- ✗Entering a mediation session without adequate preparation or prior legal consultation
- ✗Confusing the mediator with the other party's lawyer or believing they represent one party's interests
- ✗Signing the mediation record without legal review, causing it to lose its negotiating value
- ✗Refusing mediation and rushing to court in disputes that could have been resolved through faster and less costly amicable settlement
- ✗Believing every settlement can be enforced directly; executive instruments under the Execution Law include reconciliation records issued by authorised bodies or approved by the courts, not every written agreement
🌍 International Differences
In the UAE, Rental Dispute Settlement Centres (RDSC) in Dubai and Abu Dhabi provide specialized and fast mediation for tenancy disputes with the option of electronic submission. In Turkey, mediation has been mandatory before filing certain tenancy claims since 2018 under mediation law amendments. In Egypt, arbitration and mediation bodies at chambers of commerce provide real estate mediation services. In the UK, courts tend to impose penalties on those who refuse mediation without reasonable justification. In the US, real estate mediation services are available through specialized bodies such as AAA and JAMS.
FAQs
Is a reconciliation record binding and enforceable?▾
A settlement binds both parties and extinguishes the rights each gave up (Article 401 of the Civil Transactions Law). It is an executive instrument, enforced at the Execution Court without a separate judgment, when its record is issued by an authorised body or approved by a court, as with reconciliation documents issued through the Taradhi platform.
Is either party entitled to withdraw from mediation at any time?▾
Yes, voluntary mediation is based on consent and either party may withdraw at any stage. Settlement in rental disputes is generally voluntary, although the Commercial Courts Law requires conciliation before certain commercial claims are filed.
Who conducts reconciliation through official channels?▾
In the Reconciliation for Ejar beneficiaries service, the Saudi Real Estate Arbitration Center under REGA conducts it through conciliation; on the Taradhi platform, qualified conciliators of the Ministry of Justice’s Reconciliation Center do.
Are mediation session disclosures confidential and not usable in subsequent litigation?▾
That depends on the rules of the body conducting the reconciliation, so check them before you start, or agree in writing that what is exchanged in the sessions stays confidential.
What is the difference between mediation and judicial conciliation?▾
Mediation takes place outside the court with an independent mediator. Judicial conciliation takes place within the court under the supervising judge's oversight, who approves the agreement, making its record an executive instrument.
