International Construction Law Review
MEDIATION OF CONSTRUCTION DISPUTES IN THE MIDDLE EAST – WHAT ARE THE BARRIERS?
AHMAD ALOZN, PHD
Founder and Director of Powerhouse Advisory & Consultancy
KIM ROSENBERG 1
Partner, Freshfields Bruckhaus Deringer LLP
The Middle East2 should be a mecca for mediation: the reconciliation of disputants is an imperative in Islamic culture and many Middle East
countries have, in the past five years, introduced or modernised their legislative framework to promote mediation. For those engaged in commercial enterprise, there can be little doubt that, in principle, mediation may be an effective procedure for commercially resolving disputes in an amicable way. That is especially true in the construction sector: as an economic stalwart, with an estimated US$1.68 trillion of projects planned or underway in the Gulf Cooperation Council region3 alone as at the start of 2024,4 the next project opportunity is just around the corner, so maintaining amiable relationships is key. Yet mediation is not common in the modern Middle East for construction disputes (or any type of dispute). This article will consider the cultural, legislative and institutional landscape for mediation in the Middle East, along with an overview of the (lack of) engagement with mediation in the region. It will then explore the characteristics of construction projects that make disputes
amenable to mediation. Then, this article will consider the barriers to mediation in construction disputes in the Middle East and, finally, how those barriers can be overcome.
1 Ahmad Alozn PhD is the founder and director of Powerhouse Advisory & Consultancy with over 15 years’ experience in construction and alternative dispute resolution, and a co-founder of the Mediation Hub MENA NPIO. Kim Rosenberg is a partner at Freshfields Bruckhaus Deringer LLP, with over 20 years’ experience in construction and infrastructure projects. She also sits as an
arbitrator in construction disputes. The authors would like to thank Noha Elgendy, Muhammad Alshamkhi, Samy Ayoub, Hazim Alwazir, Ramzi Haddad and Nora Elmubarak for their assistance with research for this article.
2 While different definitions of the Middle East exist, the authors refer to the region made up of Bahrain, Egypt, Iraq, Iran, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, the UAE and Yemen. The main focus of this article is on the Arabic language countries in the Middle East.
3 Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the UAE.
4 CBRE, “Middle East Real Estate 2024 – Outlook”, 6 March 2024, available at https://www.cbre.ae/insights/books/middle-east-real-estate-2024-outlook (last accessed 2 August 2024).
Pt 4] Mediation of Construction Disputes in the Middle East
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