UAE joins the Singapore Convention: Strengthening cross-border enforcement for mediated settlements

The UAE's accession to the Singapore Convention will introduce a framework for the recognition and enforcement of qualifying international commercial settlement agreements resulting from mediation.

The United Arab Emirates has taken a significant step in strengthening its mediation framework through the issuance of Federal Decree No. 85 of 2026 (Decree 85/2026) for the accession of the UAE to the United Nations Convention on International Settlement Agreements resulting from Mediation, commonly known as the Singapore Convention.

Although the UAE has taken the first important step in accession, the Convention is not yet in force in the UAE. The Convention provides that it will be effective six months after the deposit of the UAE's instrument of accession with the Secretary-General of the United Nations. It may also be necessary for the UAE to clarify or amend existing legislation to provide a clear procedure for enforcing settlement agreements that are subject to the Convention in the local courts. Nevertheless, the UAE's accession represents an important development for businesses operating across borders and further demonstrates the UAE's growing support for mediation as a dispute resolution mechanism in the region.

Why the Singapore Convention matters

One of the traditional limitations of mediation has been enforcement. Although parties may successfully negotiate a settlement, a defaulting counterparty can breach the agreed terms and require the innocent party to commence fresh legal proceedings to enforce the settlement agreement.

The Singapore Convention aims to address this concern by creating a framework through which qualifying international commercial settlement agreements resulting from mediation may be directly recognised and enforced in contracting states, in a similar manner to the New York Convention for arbitral awards.

Article 3 provides two distinct ways in which a settlement agreement may be relied upon. It allows a party to seek enforcement of the settlement agreement under Article 3(1), but also to rely on it under Article 3(2) as a defence to establish that the matter has already been resolved.   

For companies engaged in international trade and cross-border transactions, this will enhance the certainty and commercial attractiveness of mediation in the UAE.

Which settlement agreements are covered?

The Convention applies to certain settlement agreements that:

• result from mediation;
• are in writing;
• resolve a commercial dispute; and

are international in nature, broadly meaning where at least two parties have their place of business in different states or where the obligations or subject matter have a substantial connection with a different state from where the parties are based.

Exclusions 

The Convention does not apply where the settlement agreement has already been transformed into another enforceable instrument. Specifically, it excludes settlement agreements that have been:

• approved by a court and are enforceable as a judgment; or
• recorded and are enforceable as an arbitral award.

In such cases, enforcement must instead be sought under the applicable judgment or arbitral award enforcement regime, including any relevant international enforcement treaties or conventions.

The Convention also specifically excludes consumer disputes, family matters, inheritance disputes and employment disputes.

The UAE's reservations

The UAE has adopted two reservations in Decree 85/2026 as specifically permitted under Article 8 of the Convention.

Firstly, Decree 85/2026 specifies that the Convention will not apply to settlement agreements involving the State, its governmental bodies or persons acting on their behalf.

Secondly, the Convention will apply only where the parties have expressly agreed that the Convention is to apply to their settlement agreement. This means that parties who wish to benefit from the Convention will need to expressly state that it applies when drafting settlement agreements arising from international mediations involving a UAE nexus.

Enforcement requirements

The Convention imposes relatively straightforward documentary requirements. A party seeking enforcement must produce the settlement agreement signed by the parties and evidence demonstrating that the agreement resulted from mediation.

In accordance with Article 4 of the Convention, evidence of mediation may include the mediator's signature on the settlement agreement, a signed confirmation from the mediator that the mediation was conducted, an attestation from the administering institution of the mediation, or any other evidence acceptable to the enforcing authority.

As a matter of good practice, parties should obtain and retain evidence that the settlement resulted from mediation in one of the specific forms identified in Article 4(1)(b), rather than relying on the residual category of “any other evidence” acceptable to the enforcing authority, which may create uncertainty at the enforcement stage.

This highlights the importance of documenting the mediation process carefully and retaining evidence capable of satisfying these requirements.

While the Convention requires contracting States to enforce qualifying settlement agreements, it remains unclear how its provisions will operate in practice in the UAE as well as how the UAE courts will interpret key concepts such as the competent authority and relief under Article 4 of the Convention. 

Grounds for refusing enforcement

The Convention contains a limited list of grounds upon which enforcement may be refused.

These include lack of capacity, invalidity of the agreement, prior performance of the obligations, ambiguity in the settlement terms, serious misconduct by the mediator, failure by the mediator to disclose circumstances affecting impartiality, public policy concerns and disputes that are not capable of settlement through mediation.

The grounds are intentionally narrow and are designed to support, rather than undermine, cross-border enforceability.

Looking ahead

The UAE's accession to the Singapore Convention marks another significant milestone in the region's increasingly pro-mediation landscape. Building on recent mediation reforms, including the Federal Mediation Law (Federal Decree Law No. 40/2023) and the establishment of the DIFC Courts Mediation Service Centre, accession to the Convention introduces a framework for the cross-border recognition and enforcement of qualifying international settlement agreements resulting from mediation.

Most importantly, when the Convention comes into force in the UAE, it will provide businesses with enhanced certainty that international commercial settlement agreements reached through mediation can be recognised and enforced across borders. As mediation continues to gain traction in commercial disputes within the region, the availability of a dedicated international enforcement mechanism is likely to increase confidence in mediation as a primary dispute resolution tool rather than merely a prerequisite to litigation or arbitration.

For businesses, this means a greater ability to resolve disputes through negotiated settlement while reducing the risk, cost and uncertainty associated with enforcing those settlements internationally. The Convention will enhance the attractiveness of mediation as a commercially efficient method of resolving cross-border disputes while preserving business relationships.