Establishment of National Authority for Alternative Dispute Resolution
Subject: Commerce

On November 2, 2023, the Royal Decree is officially promulgated to establish the organization and operation of the National Authority for Alternative Dispute Resolution (“NAA”).


The main objective is to improve the quality and efficiency of dispute resolution by utilizing out-of-court conciliation as a means to resolve a variety of disputes, including civil and commercial matters, with a focus on achieving mutual consent and fairness.


The N.A.A. can resolve alternative-to-court disputes, including civil disputes, commercial disputes, and other disputes, through conciliation, based on consent or request of the parties, with certain exceptions defined by law.

Alternative Dispute Resolution Process

N.A.A. may examine and resolve disputes sent by the lower court if any party of the dispute demonstrates willingness to conciliate their dispute. After resolving the dispute, N.A.A. shall prepare a report on the outcome of conciliation to the court that referred the case to the N.A.A. attached with case file and related documents.

In the event that the dispute cannot be resolved by conciliation, the N.A.A. shall send the case back to the court to continue the process in accordance with the law and procedures in force. Parties to the dispute also have the rights to request the court to proceed with the court process in the case that they find that the conciliation at N.A.A. cannot be proceeded.

A settlement record which is legally made in accordance with the provisions of this Royal-Decree, has the same legal value as an authentic deed and shall be kept as evidence that the court shall believe unless there is contradictory evidence or evidence of fraud or other defects in the settlement record. This settlement record shall have the same effect as the final judgment of the court and shall be deemed to be an application letter as stated in point Q of paragraph 2 of Article 350 of the Code of Civil Procedure.

Request for compulsory execution of the settlement agreement shall be made in accordance with the legal procedures in force. The dispute conciliation officials or dispute conciliation working groups or N.A.A. who issues the settlement record shall provide an execution clause of the settlement record upon request. N.A.A. shall make necessary procedures in order to ensure the implementation of the agreement in accordance with the provisions of this Royal-Decree.