Hong Kong has cemented its status as a leading global centre for dispute resolution with the formal signing of the Convention on the Establishment of the International Organisation for Mediation (the Convention) on 30 May 2025. The newly created International Organisation for Mediation (IOMed), headquartered in Hong Kong, marks a significant milestone as the first intergovernmental body dedicated exclusively to international mediation.

A milestone for Hong Kong and international mediation

The signing ceremony, held in Hong Kong and attended by more than 400 senior representatives from 85 countries and nearly 20 international organisations, represents the culmination of years of negotiation and international cooperation. 33 countries became founding members by signing the Convention onsite.

China's Foreign Minister Wang Yi described the IOMed as an innovative development in the history of international relations, highlighting its alignment with the purposes and principles of the UN Charter. It is envisaged that the IOMed will fill a long-standing gap in the global dispute resolution system by providing an authoritative, flexible and cost-effective platform for resolving cross-border disputes through mediation.

Strengthening Hong Kong's global legal position

Chief Executive John Lee underscored that the IOMed will elevate Hong Kong's international standing, positioning it on a par with leading institutions such as the International Court of Justice and the Permanent Court of Arbitration of the United Nations in The Hague. The headquarters of the IOMed will be located at the historic former Wan Chai Police Station, with operations expected to commence by the end of 2025 or early 2026.

The IOMed's establishment is anticipated to generate substantial economic benefits for Hong Kong, from increased demand for mediation and legal services to broader gains across the translation, legal research, hospitality, catering, logistics and transportation sectors. The organisation is also expected to attract international NGOs, academic institutions and other global entities to Hong Kong, further reinforcing its role as a leading legal and dispute resolution hub in the Asia-Pacific region.

An innovative step for global governance

The IOMed's establishment comes amid broader shifts in global governance and reflects China's growing influence, particularly among countries in the Global South. The Convention has drawn broad support from Asia, Africa, Latin America and Europe, signalling a new era of multipolar participation in international dispute resolution.

The new organisation is tasked with handling a wide range of disputes, including those between states, between a state and nationals of another state, and between private international parties.

Practical impact for market participants

For market practitioners, the IOMed's presence in Hong Kong is expected to offer a reliable and internationally recognised forum for resolving disputes involving Belt and Road Initiative projects and other cross-border transactions. The HKSAR government has already promoted the use of mediation by incorporating mediation clauses in government contracts and is further strengthening accreditation and professional standards within the mediation profession.

The new institution's emphasis on consensus, reconciliation and mutual understanding aligns with the growing demand for alternatives to adversarial dispute resolution, providing parties with efficient, commercially sensible and amicable outcomes.

Conclusion

The signing of the Convention and the establishment of the IOMed represent a landmark development for Hong Kong and the global legal community. As the organisation prepares to begin operations, market participants should closely monitor further announcements and consider the strategic advantages of selecting Hong Kong and the IOMed for international dispute resolution.