Mediation

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 the Saudi real estate framework, REGA provides specialized mediation services for tenancy disputes, and the Ejar platform has made it possible to submit mediation requests electronically with digital scheduling of sessions. Executive regulations also direct that mediation is mandatory for certain categories of disputes before a lawsuit is accepted. 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.