EDITION 22
Bulletin July - December 2023
Edition 22
D IF CCO URTS. A E
Digital economy alliances 3 4 8
Message from the Director Setting a new record tejouri pacakges
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DIFC COURTS BULLETIN
TABLE OF CONTENTS Message from the Director
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Half year results set new record
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HH Sheikh Mohammed bin Rashid swears in new DIFC Courts judges
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tejouri launches new packages
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DIFC Courts and Dubai Chambers forge alliance to boost business confidence
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DIFC Courts signs MoU with RAK Digital Assets Oasis
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Outreach and partnerships
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Message from the Director Welcome to the second DIFC Courts Bulletin of 2023. As we draw towards the end of 2023, we also enter the latter stages of our current Strategic Work Plan. In recent weeks we have conducted our scheduled end of year evaluations and focused acutely on the positioning of our mandate. In 2023, the DIFC Courts made deliberate and tangible strides toward more national cohesion to the Courts› projects and initiatives in line with the ‘D33’ economic agenda and the Dubai Digital Strategy. This in turn is providing effective support for the federal and local strategic goals and the Centre›s goals. The surge in uptake of the DIFC Courts’ public services in 2023 reflects the growing awareness of, and trust in, our expertise, efficiency, and ease of process. Powered by the most cutting-edge digital infrastructure, it is our expectation that more domestic and international businesses will continue to look to the DIFC Courts for future certainty and expedient resolution. We continue to demonstrate year-on-year growth in our service offerings and operational capacity as a UAE Court. The concept of quality and excellence are no longer only associated with the private sector. In fact, there are increased societal expectations for Courts to adapt to the changing expectations and behaviour of court users. Increased digital platforms, paperless processes and virtual hearings are all now becoming the new reality. By combining a modern and flexible digital infrastructure with judicial and service excellence, the DIFC Courts will continue to align our operations with the national agenda. As the UAE begins to nurture new digital economy verticals, the number of foreign organisations entering the market will inevitably increase. The DIFC Courts has a part to play with assuring these businesses that we remain on standby to resolve new types of cases and disputes.
Whilst the DIFC Courts has developed new directives to absorb the maturing needs of the regional legal community, the original and purest foundational mandate still remains; to promote Dubai and the UAE’s geographic position in the Gulf as a significant strategic advantage for international investors - a gateway bridging those working in South and East Asia, the Middle East, Europe, Africa, and the western hemisphere. A number of new and exciting service offerings will be rolled out in the coming months that will provide further choice for key dispute resolution services, as well further ancillary services vital to the general public and business communities. Stay tuned for more updates on these developments. On a final note, I am pleased to confirm that the DIFC Courts has now opened new premises in the DIFC at Level 3, Precinct Building 5, (South). The premises have undergone a complete renovation with the inclusion of a new state-of-the-art courtroom and an increased number of private service desks for public enquiries. For those wishing to access the DIFC Courts services from the comfort of your office or home, all services also remain available through our website channels.
H.E. Justice Omar Al Mheiri Director, DIFC Courts
Strategic projects encapsulated within strategic agreements were key in 2023; in March we entered a new phase of sustainability with the expansion of digital infrastructure storage at the world’s largest solar-powered green data centre. The facility’s integrated solutions are designed to provide next-generation services in the areas of digital transformation, cloud and hosting services, cybersecurity, IoT services and professional and managed services, as well as Moro services supported by ChatGPT technology. The DIFC Courts continues to strengthen its partner ecosystem with entities across the public and private sectors. Further agreements in October finalised months of planning to further align our operations with future digital economy-focused entities across the UAE. Memoranda with Dubai Chambers and RAK Digital Assets Oasis Free Zone will foster closer cooperation on projects and initiatives designed to boost the UAE’s 2031 Vision for a thriving digital economy and in support economic ambitions.
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DIFC COURTS BULLETIN
Half year results set new record In July 2023, the DIFC Courts released its figures for the first six months of 2023, reflecting a surge in the overall value of claims. In addition, the substantial uptake of additional ancillary services, such as Wills registration, further elevates Dubai’s common law jurisdiction as the region’s leading forum for international dispute resolution. The value of cases across all Divisions recorded a 692% increase in the first half of 2023, compared with the first six months of 2022, with a total value of AED 15 billion across 455 cases filed. In the main Court of First Instance (CFI), 52 cases were filed, with the total value of AED 14.9 billion and an average case value of AED 427.2 million. Cases within the Arbitration Division under the CFI also recorded a significant increase in the first six months of 2023, with a total value of AED 12.9 billion and an average claim value of AED 1.6 billion. Claims brought before the CFI involved companies and business across a wide range of sectors, including banking & finance, real estate, construction, manufacturing, retail, hospitality and maritime, and involving disputes related to breach of contract, outstanding payments, Wills & Probate, and employment. There was also a noticeable number of ‘opt-in’ cases for the first six months of 2023, with 52.5% of claims in the CFI cases originating from parties ‘electing’ to use the DIFC Courts to resolve their disputes. The operational capacity of the region’s first Small Claims Tribunal (SCT) was strong in the first six months of 2023, with 242 claims filed, and an overall claim value totalling AED 19.8 million. The average claim value of cases filed at the SCT was AED 85,000.
Claims were driven primarily by disputes involving breach of contract, employment, and property & tenancy. Increased remote virtual hearings through the region’s first “Smart SCT” virtual court, has led to over 73.5% of claims registered originating from parties selecting the SCT as their preferred method for dispute resolution. Reinforcing year-on-year increased efficiency through its digital and paperless strategy, statistics also confirm that the DIFC Courts issued 100% of Orders and Judgments digitally, with over 794 Orders in the first six months of 2023, and a further 86 Judgments issued for the same period. In addition, 98% of hearings in the CFI were conducted remotely, whilst the SCT and the Court of Appeal recorded 100% remote hearings in the first six months of 2023. Launched through a partnership in 2015 between the DIFC Courts and the Government of Dubai, the Wills Service was established to enable non-Muslims who are investing and living in the UAE to pass on their assets and appoint guardians for their children in line with their wishes through a Will registration service. In the first six months of 2023, the Wills Service registered 766 Wills, a 37.8% increase in the number of registrations compared with the first six months of 2022, and issued 22 Probate orders. Since its inception, the Wills Service has registered over 9,500 Wills. As a part of the UAE Government’s commitment to effectively employ advanced technologies and digital platforms to continue services to the public during COVID-19 restrictions, in 2020 the DIFC Courts leveraged its digital infrastructure to offer videoconferencing for Will registrations.
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There was also a noticeable number of ‘opt-in’ cases for the first six months of 2023, with 52.5% of claims in the CFI cases originating from parties ‘electing’ to use the DIFC Courts to resolve their disputes.
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With more and more individuals and businesses across the UAE operating remotely, the video conferencing facility can be accessed via a smartphone, tablet, or a desktop device, allowing residents and investors to register their Will from the safety and comfort of their own home or office. Remote registrations add an additional layer of digital access to the current Virtual Registry for Wills, which allows those living overseas to create and register a DIFC Courts Will. Investors and residents can access it from anywhere in the world and be connected, via video link, to a compliance officer sitting in Dubai. The DIFC Courts also provides an online automated Will drafting service for the Property Will, Business Owners Will and Financial Assets Will, with comprehensive explanatory notes, should individuals wish to draft the Will independently.
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The DIFC Courts Strategic Work Plan adopts end-to-end innovative emerging technologies, ensuring court systems are smart, user-friendly, and agile enough to keep pace with global commerce. Innovative implementations are bridging barriers of language, borders, jurisdiction, and currency. AI is reducing clerical burdens, streamlining the case review methodology, removing document duplications, and unlocking time to take on significantly more complex tasks. In 2022, the DIFC Courts confirmed the launch of new specialised Rules for its Digital Economy Court (DEC) Division. The Rules facilitate the efficient and modern resolution of digital economy disputes, standardising the use of smart forms to provide information through a dynamic, artificial intelligence driven platform.
In the first six months of 2023, the Wills Service registered 766 Wills, a 37.8% increase In March 2023, the DIFC Courts entered a new phase of sustainability with the expansion of digital infrastructure storage at the world’s largest solar-powered green data centre. Moro Hub’s green data centre, which is located at the Mohammed bin Rashid Al Maktoum Solar Park, was inaugurated recently by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and Chairman of Dubai Executive Council.
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The facility’s integrated solutions are designed to provide next-generation services in the areas of digital transformation, cloud and hosting services, cybersecurity, IoT services and professional and managed services, as well as Moro services supported by ChatGPT technology. Moro Hub’s data centre offers a range of colocation and disaster recovery services. With the latest in technology and infrastructure, the new data centre is designed to meet the stringent security and privacy requirements of businesses and is equipped with the latest in security and monitoring technology. The data centre is also designed to be highly scalable and flexible, allowing the DIFC Courts digital ecosystem to easily add, or remove, capacity, as needs change.
The DIFC Courts Strategic Work Plan adopts end-to-end innovative emerging technologies, ensuring court systems are smart, userfriendly, and agile enough to keep pace with global commerce. Innovative implementations are bridging barriers of language, borders, jurisdiction, and currency.
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DIFC COURTS BULLETIN
HH Sheikh Mohammed bin Rashid swears in new DIFC Courts judges
In October, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, presided over the swearing-in ceremony of two new judges of the Dubai International Financial Centre (DIFC) Courts. H.H. Sheikh Mohammed bin Rashid wished the newly appointed judges success in their new roles and highlighted the importance of constantly enhancing the DIFC’s judicial framework. He also stressed the significance of upholding the rule of law and maintaining the highest standards of transparency and neutrality in the settlement of disputes, in accordance with global best practices. Judges Andrew Gerard Moran and Rene Le Miere took their oath to join the Court of Appeal at the DIFC Courts. They expressed their gratitude for the opportunity to be part of the DIFC Courts. The ceremony was attended by H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and CEO of Emirates Airline & Group; Essa Kazim, Governor of the Dubai International Financial Centre; Zaki Azmi, Chief Justice of the DIFC Courts; and Justice Omar Al Mheiri, Director of the DIFC Courts.
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tejouri launches new packages Tejouri enables the upload and secure storing of documents ranging from insurance contracts, title deeds, Wills, and financial certificates, to images and multimedia files and can be utilised by all individuals globally.
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tejouri provides a unique platform that functions simultaneously as a cloud vault and an online safe for data, supported by a state-of-the-art onsite DIFC data centre and a secondary UAE-based backup data centre. Access to all data is restricted to the ‘vault holder’ and the listed intended recipients, guaranteeing zero-knowledge proof privacy principles.
DIFC COURTS BULLETIN
DIFC Courts and Dubai Chambers forge alliance to boost business confidence In October, the DIFC Courts signed an agreement with Dubai Chambers to forge a closer coalition in support of Dubai and the UAE’s economic ambitions. The agreement will promote collaboration across specific digital economy and mediation services provided by both organisations, as well as coordinated and aligned activities with international outreach. The DIFC Courts is currently operating on a new roadmap for the years 2022-2024, which includes a strategic work plan that brings more national cohesion to the Courts› projects and initiatives in line with the ‘D33’ economic agenda and the Dubai Digital Strategy. This in turn is providing effective support for both the federal and local Dubai strategic goals. Dubai Chambers is one of the UAE’s largest economic development arms and serves as the engine of the emirate’s business growth. As the umbrella organisation of Dubai Chamber of Commerce, Dubai International Chamber, and Dubai Chamber of Digital Economy, Dubai Chambers advocates for the interests of the local business community, builds and reinforces international partnerships, and accelerates the growth of the digital economy. The reputation of DIFC Courts as a safe harbour and business gateway continues to mature; the provision of an environment which business, both domestically and internationally can trust, one in which contracts can be
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enforced and disputes resolved fairly and swiftly, one of certainty and predictability, are all vital in achieving core strands of Dubai and the UAE’s mission. The UAE has launched a major campaign to attract digitally enabled companies and highly skilled talent to the country. Foreign direct investment (FDI) flows into the UAE also rose 10% in 2022 from the previous year to a record $23 billion, according to a 2023 UN report. According to UNCTAD, the UAE attracted approximately 60% of total FDI into the GCC bloc, which more than doubled to $37 billion. In 2021, the DIFC Courts confirmed the launch of a new Division. The international Digital Economy Court is aimed at simplifying the settlement process of complex civil and commercial disputes related to the digital economy, reviewing national and international claims related to current and emerging technologies, including big data, blockchain, cryptocurrencies, artificial intelligence, and cloud services.
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DIFC Courts signs MoU with RAK Digital Assets Oasis In October, the DIFC Courts has signed an agreement with Ras Al Khaimah Digital Assets Oasis (RAK DAO) that will drive greater awareness of DIFC Courts digital economy services to businesses operating within Ras Al Khaimah’s newly launched digital economy freezone. The memorandum with foster closer cooperation on projects and initiatives designed to boost the UAE’s vision for a thriving digital economy and in support economic ambitions. The agreement will also promote closer alignment and collaboration across specific digital economy services provided by both organisations. The DIFC Courts is currently operating on a new roadmap for the years 2022-2024, which includes a strategic work plan that brings more national cohesion to the Courts› projects and initiatives in line with the ‘D33’ economic agenda and the Dubai Digital Strategy. This in turn is providing effective support for both the federal and local Dubai strategic goals. At GITEX Global 2022, the DIFC Courts launched a global digital vault engineered to help address issues of storage and security of documents and to enable individuals to transfer digital data to one secure location. ‘tejouri’ enables the upload and secure storing of documents ranging from insurance contracts, title deeds, Wills, and financial certificates, to images and multimedia files and can be utilised by all individuals globally.
All uploaded life admin files will be secured under the highest standards of security regulation, using multiple factors of authentication, encrypted data, personalised biometric information, and safe-keeping ledgers through advanced cryptography. Using Distributed Ledger Technology (DLT), the vault also ensures the transmission of your entire portfolio to your designated stakeholders, or loved ones, at a key time. RAK DAO is the world’s first and only common law free zone dedicated to global digital and virtual assets companies, empowering innovators in their journey to build the future of Web3 and blockchain technology across industries, promising to disrupt traditional business models and unlock the full potential of digital assets. By offering a transparent legislative framework and fostering a vibrant ecosystem, where companies have everything they need to imagine, develop, execute and thrive, RAK DAO drives the future of emerging sectors, propelling innovation, and unlocking the potential of digital assets. The free zone aims to become the epicentre for digital asset innovation on a global scale. By attracting international partners and fostering collaboration, it strives to position Ras Al Khaimah as a leading hub for innovation and enhance its competitiveness as a global destination for business in the digital age.
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Outreach and partnerships
H.E. Justice Ali Al Madhani, Deputy Chief Justice; and the DIFC Courts team were pleased to welcome H.E. Ahmad bin Meshar, Secretary General; and the Supreme Legislation Committee team.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, sworn in two new judges of the DIFC Courts.
During a relation building trip to the Kingdom of Bahrain, H.E. Justice Ali Al Madhani, Deputy Chief Justice; and the DIFC Courts team were welcomed by the Judicial & Legal Studies Institute, Royal University for Women (RUW), GCC Arbitration Centre, and the Ministry of Justice and Islamic Affairs.
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During Dubai Arbitration Week, the DIFC Courts hosted a session on ‘The role of courts in building a safe arbitral seat: the view from the bench’.
The DIFC Courts team was pleased to welcome government and private sector delegations at its stand during GITEX Global 2023.
Our Chief Registrar, Amna Al Owais, participated at the Knowledge Summit where she presented about the ‘Courts of the future: Redefining court services and access to justice in the digital era’.
H.E. Justice Ali Al Madhani, Deputy Chief Justice, DIFC Courts, presented during a training workshop hosted by Ras Al Khaimah Courts on the ‘Challenges facing the justice systems in the coming years’.
H.E. Justice Omar Al Mheiri, Director; H.E. Justice Ali Al Madhani, Deputy Chief Justice; and the DIFC Courts team were pleased to welcome the Consul General of India – Dubai, Dr Aman Puri. 11
DIFC COURTS BULLETIN
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