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A Mediation Agreement is a formal contract that sets the ground rules when two parties choose to resolve their dispute through mediation in Saudi Arabia. It outlines how the mediation process will work, including the mediator's role, confidentiality requirements, and each party's rights and obligations under Sharia law and the Kingdom's regulations.

Under Saudi's recent mediation laws, this agreement becomes legally binding once signed, making it an essential tool for avoiding court litigation. It typically covers practical details like cost-sharing, timeline commitments, and the steps parties will take to reach a settlement - all while respecting local cultural and religious values in dispute resolution.

Use a Mediation Agreement when you need to resolve business or civil disputes outside of Saudi courts while maintaining legal protection. This agreement becomes especially valuable in commercial conflicts where preserving business relationships matters more than winning a legal battle, or when you need a faster resolution than litigation can provide.

The agreement works particularly well for construction disputes, family business conflicts, and commercial partnership disagreements in the Kingdom. It offers a structured path to resolution while respecting Saudi law and Sharia principles. Many organizations now include mediation clauses in their contracts to avoid costly court proceedings and maintain confidentiality.

• Standard Commercial Mediation Agreement: Covers basic business disputes, with flexible terms for scheduling, cost-sharing, and confidentiality requirements
• Islamic Finance Mediation Agreement: Incorporates Sharia-compliant dispute resolution mechanisms and specific terms for Islamic banking conflicts
• Construction Project Mediation Agreement: Features specialized clauses for technical experts, multiple parties, and project-specific milestones
• Family Business Mediation Agreement: Includes provisions for preserving family relationships and business continuity under Saudi family law
• International Trade Mediation Agreement: Addresses cross-border disputes while maintaining compliance with Saudi and international regulations

• Disputing Parties: Business owners, corporate entities, or individuals who agree to resolve their conflict through mediation under Saudi law
• Certified Mediators: Saudi-licensed professionals who facilitate the mediation process and help draft agreement terms
• Legal Counsel: Saudi lawyers who review and advise on the Mediation Agreement's terms to protect their clients' interests
• Industry Experts: Technical specialists who may be named in the agreement to provide expert opinions during mediation
• Corporate Officers: Company executives authorized to sign and bind their organizations to the mediation process

• Party Details: Gather full legal names, contact information, and authority status of all participating parties
• Dispute Scope: Define the exact nature and boundaries of the conflict to be mediated
• Mediator Selection: Choose a Saudi-licensed mediator and document their credentials and appointment terms
• Timeline Planning: Set realistic deadlines for each mediation phase, including initial meetings and final resolution
• Cost Structure: Outline how mediation expenses will be shared among parties
• Compliance Check: Ensure alignment with Saudi mediation laws and Sharia principles using our platform's automated guidance

• Party Identification: Full legal names, addresses, and authorized representatives of all participating parties
• Dispute Description: Clear statement of the conflict's nature and scope to be resolved through mediation
• Mediator Details: Appointment terms, qualifications, and role specifications under Saudi law
• Confidentiality Terms: Strict privacy obligations aligned with Saudi legal requirements
• Process Framework: Detailed mediation steps, timelines, and meeting procedures
• Cost Distribution: Clear allocation of mediation expenses and payment terms
• Sharia Compliance: Express commitment to Islamic principles in dispute resolution
• Termination Rights: Conditions for ending mediation and next steps

A Mediation Agreement differs significantly from an Arbitration Agreement in several key aspects under Saudi law. While both offer alternatives to court litigation, they serve distinct purposes and follow different procedural paths.

• Decision-Making Authority: Mediators facilitate discussions but cannot impose decisions, while arbitrators make binding rulings like judges
• Formality Level: Mediation offers a more flexible, informal process focused on dialogue, while arbitration follows strict procedural rules
• Cost and Time: Mediation typically costs less and concludes faster than arbitration proceedings in Saudi Arabia
• Outcome Nature: Mediation agreements result from mutual consent, while arbitration decisions are binding regardless of parties' wishes
• Sharia Compliance: Both must align with Islamic principles, but arbitration requires more formal religious law considerations in decision-making