MESSAGE FROM THE CHIEF JUSTICE

Across the region, new courts and arbitration facilities are opening or are in the planning. It is a hugely exciting time to be in the region. Dispute resolution in the Arab world is alive and well and ready to take its place on the international stage.

It has always been the mandate of the DIFC Courts to seek out alliances; we realise that by working together to analyse future developments and opportunities and by sharing best practices we will be best able to support our respective business communities and the economic success of our respective states. This has been our experience of working with judiciaries elsewhere in the world, such that a collaborative relationship between our courts is not only for the good of the courts but, more importantly, for the good of the communities we serve.

As part of Dubai and the UAE commercial fabric, the DIFC Courts is also under an obligation to capture national priorities and to work in tandem to help realise future aspirations. The UAE government has outlined in recent years several core initiatives related to future digital economy requirements and the nation’s strategic roadmap, including a taskforce of government and business leaders to think beyond the pandemic to a digital economy.

In 2022, the DIFC Courts demonstrated its alignment with this national agenda by progressing and finalising the final elements to its Digital Economy Court (DEC) Division. Following the announcement of the dedicated Division in 2021, a global panel of lawyers and industry experts were tasked in 2022 to draft and confirm new specialised Rules, which were also subject to a 30-day public consultation.

Further due diligence on the effectiveness of the Rules also witnessed the DIFC Courts holding its inaugural virtual Moot Court. From November 26 - 27, the DIFC Courts held a virtual Moot Court, inviting 18 teams of international law students and 25 qualified judges to hold a two-day competition to test-proof the new DEC Rules across a dispute involving cryptocurrency.

Welcome to the DIFC Courts Annual Report 2022.

The transformation in commercial dispute resolution in the Arab world over the last decade has been nothing short of remarkable. But I also believe we are just at the beginning of the story.

In January 2023, under the Dubai Economic Agenda ‘D33’ launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the digital economy was identified as a major driver in this growth, with its contribution to the economy projected to reach AED 100 billion annually. As the UAE begins to nurture new digital economy verticals, the number of foreign organisations entering the market will inevitably increase. The DIFC Courts will have a part to play in assuring these businesses that we remain on standby to resolve new types of cases and disputes.

Reviewed and approved by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and President of the DIFC, in December, the new ‘Part 58’ of the DIFC Courts 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 line with the Courts’ paperless mandate, cases will also be conducted using advanced digital systems to expedite service to parties and enforcement, with a view to reducing the environmental impact of court proceedings.

The DIFC Courts has continued its trajectory to provide Dubai, the UAE, and the world, with a suite of dispute resolution services that truly break through the barrier of traditional public court services. Businesses that can adapt to embrace the future digital economy will do so with the knowledge that there is a sophisticated yet efficient venue to support and protect the continuity of business projects.

With the digital economy fast emerging as a prime accelerant of global business, these specialised Rules have been engineered to strengthen our mission of building a courts system that not only absorbs current dispute resolution needs but can flex to address and resolve new emerging disputes.

This strategy has been further reinforced by ensuring we blend leading judicial expertise with innovative technological implementations. In 2022, leading international judicial expertise was recruited to oversee and operate the new Court’s cuttingedge digital infrastructure and service capabilities. Under Decree No. 29 of 2022, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, and Prime Minister of the UAE, appointed Justice Michael Black of England & Wales, who will oversee the Digital Economy Court Division. I am delighted to also witness the Decree promoting His Excellency Justice Ali Shamis Al Madhani to Deputy Chief Justice.

I am also particularly proud to confirm that in 2022 the DIFC Courts issued a judgment in one of the first cryptocurrency litigation disputes in the region and one of the few reported cases anywhere in the world which addresses issues such as the safe transfer of cryptocurrency between buyer and seller and the obligations owed by a custodian of cryptocurrency. This case gave rise to various other interesting questions such as the nature of Bitcoins, i.e., whether cryptocurrencies are considered commodities, currencies, properties, or something entirely different, and the appropriate time to value Bitcoins.

By way of reference, in 2022, the total value of claims and counterclaims across all Divisions was AED 4.4 billion, with an average case value of AED 58.3 million for cases filed with the Court of First Instance (CFI).

Statistics from 2022 confirm that the DIFC Courts continues to push ahead with operationally efficiency, driven in part, by continued investment in digital transformation. One hundred per cent (100%) of Orders and Judgements were issued in digital format in 2022, as well as over 90% of hearings conducted remotely, employing our digital infrastructure to capture this benchmark. The DIFC Courts also reconfirmed its status as the first paperless Court in the region, with 100% of internal processes and customer-facing services now operating fully digital.

Zaki Azmi Chief Justice