Annual Report 2023 (English)

HIS HIGHNESS SHEIKH

MOHAMMED BIN RASHID AL MAKTOUM

VICE PRESIDENT AND PRIME MINISTER OF THE UAE AND RULER OF DUBAI

HIS HIGHNESS SHEIKH

MAKTOUM BIN MOHAMMED BIN RASHID AL MAKTOUM

FIRST DEPUTY RULER OF DUBAI, AND DEPUTY PRIME MINISTER AND MINISTER OF FINANCE OF THE UAE, AND PRESIDENT OF THE DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC)

HIS EXCELLENCY

ESSA ABDULFATTAH KAZIM

GOVERNOR OF THE DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC)

TABLE OF CONTENTS

01 MESSAGE FROM THE CHIEF JUSTICE

Welcome to the DIFC Courts Annual Report 2023.

Today, the world we live in is experiencing change at an unprecedented pace. Recessions and financial crisis is gripping large parts of the developed world and has encouraged a pause in the trend towards globalisation, however, it has certainly not halted it. Indeed, as we emerge from this painful period, it is clear that the dynamics of global commerce have not changed, but they have shifted.

We are witnessing a structural change from the West to the East, as the basis for economic power and the framework in which it sits changes. While financial services will continue to play a major role in economic development, there is a clear return to a more manufacturing basis as the high growth markets, such as the UAE, utilise their relative financial strength to develop their economies and societies.

This shift has resulted in increasing complexity within commercial relationships and increased the reliance they place on the legal system. Courts, increasingly faced with multi-national cases with multi-jurisdictional aspects, have to focus on quality management systems in order to improve their own performance and underpin their reputations.

I would like to take this opportunity to share my thoughts on the challenges faced by Courts today in managing change and transformation; specifically, why the concepts of Judicial and Court Excellence and all that this entails is so important the local and regional judicial system.

The DIFC Courts offers a unique judicial bench: a blend of highly hybrid-trained Emirati judges, complemented by renowned international judges from some of the world’s most developed common law jurisdictions.

Studies have shown that a well-run judiciary can have a very real impact on economic growth, with markets with effective commercial justice regimes estimated to grow half a percentage point faster than those without.

In 2023, 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 to the DIFC Courts. I take great pleasure in reintroducing the Honourable Justice Andrew Moran of England & Wales, and the Honourable Justice Rene Le Miere of Australia.

If we look to the long-term future challenges for commercial dispute resolution, what will be the challenges in 20, 30 or 40-years’ time? What law and mechanisms will dispute resolution services need

to adopt in order to keep pace? Are the necessary measures in place to allow secure innovation? How do you resolve disputes in the global technology supply chain involving current and emerging technologies across areas ranging from big data, blockchain, AI, fintech, and cloud services, to disputes also involving unmanned aerial vehicles (UAVs), 3D printing, and robotics?

In an era of significant technological disruption, this process becomes ever faster and more dynamic. When something truly innovative hits the market, new legal questions around liability and applicable laws and regulations are posed. In response, regulators and policymakers set to work to ensure the necessary legal framework is in place to protect both people and businesses. Finally, court systems step in to resolve new types of cases and disputes.

In 2023, the DIFC Courts demonstrated its alignment with this national agenda by issuing several Practical Guidance Notes (PGNs) to address emerging technologies and their use in the context of court proceedings.

Whilst we must engage new technologies, we must also be vigilant against premature utilisation; guidelines on virtual hearings and on use of large language models and generative AI in proceedings were issued for further clarity and support.

I am also particularly proud to confirm that in 2022 and 2023 the DIFC Courts processed a case involving 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.

Further rigorous review and debate of this case and its defining points of issue were facilitated when the case was re-examined at the Court of Appeal and a final judgment will be issued in 2024.

By way of reference, in 2023, the total value of claims and counterclaims across all Divisions was AED 16.5 billion, with an average case value of AED 228.8 million for cases filed with the Court of First Instance (CFI).

The Small Claims Tribunal (SCT) continues its pioneering work to meet the needs of smaller disputes for individuals, SMEs, and large businesses, recording strong representation across a wider range of sector types and disputes ranging from employment to nonpayments and breaches of contract. Statistics from 2023 have recorded over 500 cases with the SCT, an increase of 11% from 2022.

Statistics from 2023 confirm that the DIFC Courts continues to push ahead with operational 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 2023, as well as 99% of hearings conducted via our virtual hearing 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

02

MESSAGE FROM THE DIRECTOR

Welcome to the DIFC Courts Annual Report 2023.

In a world that is more globalised and connected than ever, one element still dictates the success of commerce – trust… and the ability to trade securely with business certainty. We are seeing the transnational movement of goods and services across the world through hundreds and thousands of different companies. Inevitably this sustained flow of commerce will attract disputes.

Often the case, when a dispute arises, each party is reluctant to enter the other’s courts. They fear inexperienced or protective judges; they are unfamiliar with (and therefore sceptical of) local law; they seek to avoid inconsistent outcomes; in some instances, they prefer private conflict resolution to public litigation; and there is often disagreement about the jurisdiction of choice, each side wishing to pursue uniform agreements rather than modifying their contracts to comply with the sometimesobscure requirements from another jurisdiction.

When resolving cross-border disputes, will corporations prefer arbitration, particularly in conjunction with Alternative Dispute Resolution (ADR) mechanisms, with a streamlined stepped approach; or will concerns regarding the legitimacy of local or global enforcement cause further doubt on litigation proceedings?

Looking at global legal infrastructures, it becomes apparent that the challenges for commercial dispute resolution run much deeper than superficial procedural obstacles. Professor Gillian K. Hadfield Professor of Economics at the University of Southern California (USC), published a book, entitled Rules for a Flat World, addressing this issue. She states in her book: “Our existing systems for developing the rules and legal practices we need to manage the galloping progress of the global digital economy are drowning in cost and complexity…the legal systems we have are failing ever more regularly to do what law is supposed to do: make it easier for people to work together and make life for all better, not worse.”

Dispute resolution needs to be more about providing a service – helping people resolve problems they can’t work out themselves. Adopting user-friendly procedures, reinforcing the overall courts experience is crucial as a stepping stone to building trust. Effective and less-expensive access to dispute resolution procedures and regulatory systems need to work in tandem with governments that ensure the rule of law is being honoured.

Traditional legal systems often increase fear and anxiety in claimants and defendants across the globe. The physical nature of a traditional court room has allowed for a perception of being a place that is out of touch and too traditional to solve complex and far-reaching disputes. In some cases, this is further amplified by systems that are often outdated, hindered by a shortfall in attempts to adopt modern, practical technology.

There is discussion in recent times of artificial intelligence and how it can revolutionise the legal sector. At a very practical level, some dispute resolution centres are failing to even introduce intelligent automation. It has caused many courts around the world to lag behind in solving disputes, including arbitration, mediation, or private sector resolutions.

But what does all this mean for commercial dispute resolution? Legal infrastructures will need to look at IP, supply chain, and transnational disputes. Emerging as the modern-day crossroads connecting east and west, Dubai’s commitment to harness technology and to be a City of the Future will play a role.

The DIFC Courts is already considered the preeminent centre for English language dispute resolution in the Middle East because we ask these tough questions and follow these enquiries with swift implementations. The increasingly international nature of our caseload is a clear signal that international businesses with interests in the Middle East region consider the DIFC Courts to be their first choice for dispute resolution, fulfilling the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to establish both the DIFC and the overall city as a global hub for business.

At a national level, the UAE continues to push against global recessionary headwinds; despite geopolitical uncertainties, conflicts, and market slowdowns, growth recorded in the UAE for 2023 demonstrates resilience across visionary mandates outlined by our leadership. As part of Dubai and the UAE commercial fabric, the DIFC Courts is obliged 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. Momentum emanating from the Dubai ‘D33’ economic plan, and the Dubai Digital Strategy, is now touching a diverse range of sectors, including government legal services; the innovative strategy of the DIFC Courts is inspired by the vision of Mohammed bin Rashid to set new standards in the settlement of global judicial disputes and our global financial position.

More specifically to the DIFC, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, and Deputy Prime Minister and Minister of Finance of the UAE, and President of the Dubai International Financial Centre (DIFC), has empowered the DIFC Courts to spearhead some of the UAE’s most progressive dispute resolution services, underpinned by smart technology implementations.

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.

This has been our experience of working with some of the UAE’s most innovative private and public sector entities; 2023 saw the DIFC Courts pen partnership agreements with Dubai Chambers to forge a closer coalition in support of Dubai and the UAE’s economic ambitions, as well 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.

As we present our performance for 2023 and once again consider what makes a good commercial court, the answer will not only rest in the number and value of cases we handle, which has topped all historical performance indicators as global volatility brings with it the need to offer effective tools for dispute resolution.

Instead, the DIFC Courts, as well as our colleagues across the dispute resolution landscape, will ask if we played our full role in supporting Dubai’s status a global business hub by engendering trust, confidence, and certainty. Year-on-year growth in our service offerings and operational capacity as a UAE Court suggests we are continuing to fulfil our mandate and leading with reliable, fast, and transparent commercial dispute resolution.

H.E. Justice Omar Al Mheiri Director, DIFC Courts

03 YEAR AT A GLANCE

AED 16,530,708,068

Total value of claims and counterclaims filed across all Divisions

AED 16,478,661,505

Total value of claims and counterclaims filed with the Court of First Instance (CFI)

AED 44,639,730

Total value of claims and counterclaims filed Technology & Construction Division (TCD)

AED13,375,995,748

Total value of claims and counterclaims filed with the Arbitration Division (ARB)

Small

AED104,721

Average value per claim filed with the Small Claims Tribunal

100% of internal processes and customerfacing services as now operating fully paperless

Appointment of two (2) new judges

Launch of the tejouri packages

39%

of employees are UAE nationals

187

International judicial bench registered law firms registered individual lawyers

895

First court in the world accredited to the International Standards for Service Excellence (TISSE) in 2013

First ‘smart’ Small Claims Tribunal in 2016

Region’s first fully digitally integrated e-Courtroom and Case Management System in 2016

Region’s first ‘paperless’ e-bundling solution in 2018

Region’s first fully paperless Court in 2021

First Dubai entity and first UAE Court to acquire eSeal solution Ethaq in 2021

Cooperation agreements signed with ten overseas courts, in the US, UK, China, Australia, South Korea, Singapore, Kenya, Kazakhstan, Zambia, Malaysia, and Hong Kong

Judges from across the globe including United Arab Emirates, United Kingdom, Malaysia, and Australia

Court of First Instance 5.1

Court of First Instance (including Civil & Commercial Division (CCD); Technology & Construction Division (TCD); Arbitration Division (ARB) and Digital Economy Court Division (DEC))

The Court of First Instance (CFI) has exclusive jurisdiction over any civil or commercial case when it relates to the DIFC. It can also hear cases when the contract in question specifies DIFC Courts’ jurisdiction (pre-dispute jurisdiction) or when both parties elect to use DIFC Courts to resolve a dispute which has already arisen (postdispute jurisdiction). One Judge hears proceedings in the CFI.

TOTAL NUMBER OF CASES (CCD, TCD, ARB, DEC, ENF & SCT)

TOTAL VALUE OF CASES (CCD, TCD, ARB, DEC, & SCT)

AVERAGE CASE VALUE (CCD, TCD, ARB, DEC, & SCT)

Civil & Commercial Division (CCD)

The CCD acts as a vehicle for the resolution of complex disputes arising out of civil and commercial matters. The types of disputes that can be resolved through this Division are those relating to, but not limited to, employment, breach of contract, property and tenancy, banking & finance, which require specific expertise across the broad and complex expanse of disputes of this nature. A specialist judge heads this Division and works on encouraging parties to agree on timelines for the progression of cases, as well as ensuring matters requiring a decision from the Court are dealt with expeditiously and fairly, in line with the DIFC Courts’ commitment to transparent and efficient access to justice.

In September 2022, Justice Sir Jeremy Cooke was appointed Judge in Charge of the Civil & Commercial Division.

87

Technology & Construction Division (TCD)

The TCD draws on specialist judges and a new set of industry-specific rules to fast-track dispute resolution, providing greater certainty to businesses in court. The Division will only hear technically complex cases. Examples in the construction sector might include complicated engineering disputes or claims arising out of fires. Technology-related cases could include liability for cybercrime incidents, disputes over the ownership and use of data, and issues relating to emerging technologies such as artificial intelligence or connected cars.

In September 2022, Justice Wayne Martin was appointed Judge in Charge of the Technology & Construction Division. Total

05 CASE STATISTICS

Arbitration Division (ARB)

Established in 2020, the Arbitration Division is mandated to accommodate the rapidly increasing number of arbitration-related cases. The Division leverages dedicated judicial and registry oversight and case management expertise. Streamlining the arbitration-related cases under the new division has also led to increased efficiency of process, with the ability to swiftly review applications for interim measures and injunctive relief mechanisms.

With its extensive national, regional, and global connectivity, the DIFC Courts empowers its specialised Arbitration Division to leverage existing enforcement expertise, helping to ensure certainty of recognition and enforcement of arbitral awards.

To bolster the Arbitration Division, the DIFC Courts has also launched an Arbitration Working Group in 2020, the first court in the region to introduce such an initiative. The panel of experts are tasked with reinforcing and sharing developments and best-practices, encompassing an advisory team of arbitration professionals, bodies, centres, educational institutions, and industry-related organisations.

In February 2020, H.E. Justice Shamlan Al Sawalehi was appointed Judge in Charge of the Arbitration Division.

20 CASES

Total number of cases

Digital Economy Court Division (DEC)

In 2021, the DIFC Courts established the Digital Economy Court to oversee sophisticated national and transnational disputes related to current and emerging technologies across areas ranging from big data, blockchain, AI, fintech, and cloud services, to disputes also involving unmanned aerial vehicles (UAVs), 3D printing, and robotics.

With the continuous growth of digital transformation across the world, trade and services inevitably integrate digital technology in their fundamental operations. Now, more than ever an innovative judicial system is key to promoting growth as well as providing security, reliability, and protection for companies and businesses.

In 2022, Justice Michael Black was appointed Judge in Charge of the DEC Division.

AED AED

13,375,995,748

Total value of cases

955,428,267

Average case value

Enforcement (ENF)

5.3 5.2

The DIFC Courts continued the successful development of domestic and international avenues for enforcing judgments and orders. Enforcement proceedings are now the second-largest type of claims in the Courts, after Court of First Instance proceedings.

Small Claims Tribunal (SCT)

The Small Claims Tribunal (SCT) can hear claims within the jurisdiction of the DIFC in three situations. First, where the amount or value of the claim does not exceed AED 500,000. Second, when the claim relates to the employment or former employment of a party and the amount or value of the claim exceeds AED 500,000 and all parties to the claim elect in writing that it be heard by the SCT.

There is no value limit for the SCT’s elective jurisdiction in the context of employment claims. Third, if in the context of claims which are not employment-related, the amount or value of the claim does not exceed AED 1 million, and all parties elect in writing that it be heard by the SCT, such election can be made in the underlying contract (if any) or subsequently.

Service milestones 6.1

Region’s first e-Registry

Region’s first ‘Smart’ Small Claims Tribunal (SCT)

Custom built fully integrated digital Court Management System (CMS)

e-Service through social media and instant direct messaging for SCT

Virtual Registry for the Wills Service

Region’s first secure ‘paperless’ e-bundling cloud-based technology

Courts of the Future Initiative with Dubai Future Foundation (DFF)

2009

2016

2017

2017

2017

2017

2018

2019

2019

2021

2020

2021

2021

2022

2023

World’s first Court Tech Lab initiative with Dubai Future Foundation

Courts of Space

Digital Economy Court

Launch of tejouri

Court of the Blockchain initiative with Smart Dubai

Video-conferencing system for Wills Service

Electronic seal ‘Ethaq’ Moro Hub ‘green’ storage

07

Judicial & Administrative Excellence

7.1 Judicial appointments

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 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.

7.2

Fees Guide

In line with the DIFC Courts commitment to providing access to justice and efficient service to its users, the DIFC Courts has amended its Schedule of Fees (SoF) and issued a corresponding Guidance Note (GN) to provide further clarification to the Schedule – which came into force on April 18, 2023.

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.

Judges

Judicial Officer Judicial Support Office

Zaki Azmi, Malaysia

Omar Al Mheiri, UAE

Wayne Martin, Australia

Deputy Chief Justice H.E Australia

Justice

Michael Black, England & Wales

Lord Angus Glennie, Scotland Sir Peter Gross, England & Wales

H.E. Justice

Shamlan Al Sawalehi, UAE Sir Jeremy Cooke, England & Wales

UAE

H.E. Justice

Maha Al Mheiri, UAE

Andrew Moran, England & Wales

Justice

Rene Le Miere, Australia

Maitha Al Shehhi

Mariam Al Mashedadani

ADMINISTRATIVE

Executive

Registry

Ayesha Bin Kalban Registrar

Shahin Shaikh Senior Administrator

Hamad Sulaiman Compliance Officer

Operations

Internal Audit & Business Excellence Department

Dulanee De Abrew

Head of Internal Audit & Business Excellence

Human Resources Department

Samia Al Rajaby

HR Operations & Facilities Management Manager

Arleen Lazo

Senior HR Officer

Delvin Sumo Assistant Registrar

Alanood AlRiyami

Case Progression Officer

Saba Piracha

Ancillary Services Support & Compliance Officer

Communications Department

Michael Byrne

Head of Communications

Maryam AlBastaki

Officer – Strategic Communications

Support Staff

Kamal Hossain

Courts Clerk

Simon Kabiru

Courts Clerk

Stefan Rodrigo Office Clerk

Director’s Office

Ahmed Al Kamali

Government & International Relations & Chief Justice Office Manager

Cheryl Fernandes

Senior Executive Assistant & Judicial Coordinator

Hayley Norton Assistant Registrar

Hind AlQurashi Case Progression Officer

Nilofer D‘souza Compliance Officer

Shannon Herriot

Senior Case Progression Officer

Saeed Al Dahmani

Case Progression Officer & Baliff

Sharini Abdulsabur Jaji Customer Service & Compliance Officer

Digital & Data Department

Arul Vigin

Head of Digital & Data Adil Khan

Senior Infrastructure and Security Engineer

Ajaz Wani Operations Engineer

Mercedes Oharriz

Senior Executive Assistant to the Chief Registrar & Chief Operating Officer

Finance Department

Roserfinalyn Quinto

Head of Finance

Cherilyn Del Mundo

Senior Accountant

Santosh Gowda

Senior Accountant

08Service Excellence

Court user service performance

ISO 9001:2015 Quality Management System

In 2023, the DIFC Courts achieved a notable milestone as they secured re-certification from external auditors, who found no instances of non-conformities during the audit of selected process samples. This reaffirms the commitment to upholding the ISO 9001:2015 Quality Management System Standards.

With a dedicated focus on continuous improvement, the DIFC Courts aim to enhance the quality of services. This commitment is established through streamlined internal and external processes, prioritising the health and safety of all stakeholders, facilitating access to services via multiple communication channels, actively engaging employees, and cultivating strong relationships with suppliers.

8.1 8.2

These strategic initiatives collectively contribute to reaching our goal of achieving satisfaction among court users.

Mystery Shopper Surveys

As a part of the organisation’s performance evaluation, mystery shopper surveys were conducted to identify the issues or potential risks around “Service Excellence”.

Mystery shopper surveys were conducted across phone and email enquiries, and meetings (either virtual or face-to-face) to understand the real-time perception of the court users. Overall, our client-facing team achieved an average score of 92%.

Practice Directions and Rules amendments

In 2023, the DIFC Courts launched the following:

Practice Direction No. 1 of 2023: handing down of reserved judgments in the Dubai International Financial Centre Courts as expeditiously as is reasonably practicable having regard to the circumstances of the case, including its nature and complexity, and the other commitments of the court.

Practice Direction No. 2 of 2023: temporary dispensation from 4 August 2023 to 10 August 2023.

Practical Guidance Note No. 1 of 2023:

DIFC Courts’ Virtual Hearing and Bundling Protocol. The Virtual Hearing and Bundling Protocol (the “Protocol”) is intended to provide a comprehensive framework of rules and guidance for how the DIFC Courts (the “Courts”) wish to conduct virtual hearings using virtual technology (“Virtual Hearings”) and the use of Bundles, in order to ensure accessibility, efficiency and fairness

Practical Guidance Note No. 2 of 2023: guidelines on the use of large language models and generative AI in proceedings before the DIFC Courts. These guidelines apply to parties in proceedings before the DIFC Courts (“the Courts”) and are to be taken into consideration when using Large Language Models (“LLMs”) and Generative Content Generators (“GCGs”) during such proceedings.

Registrar’s Direction No. 1 of 2023 (it replaces Registrar’s Direction No. 1 of 2017): indicative hourly legal charges. In order to provide a benchmark to the Courts of the average charge out rates in Dubai, a survey of law firms has been undertaken and the average hourly rates are ascribed to varying levels of experience and seniority.

The Registry intends to undertake a full review of the Rules of the DIFC Courts, incorporating practice directions and guidance notes to form part of the new rules in order to ensure smooth navigation for users.

Committees 8.3

The DIFC Courts has structured several committees to assist in providing an efficient, accessible, transparent, and professional service to all users.

Courts’ Users’ Committee

The DIFC Courts’ Users’ Committee is an independent liaison body between the DIFC Courts and Courts users, with the brief of supporting cost effective and professional service provision. The Committee holds regular meetings.

Rules Committee

The Rules Committee meets quarterly to discuss changes and improvements to the Rules of the DIFC Courts. It comprises a wide range of legal practitioners who engage with the DIFC Courts and have significant practical experience of the Rules.

Chairperson

Amna Al Owais, Chief Registrar, DIFC Courts

Committee members

Ayesha Bin Kalban, Registrar, DIFC Courts

Ahmed Al Raeesi, Founder & CEO, Ahmed Al Raeesi Advocates & Legal Consultants

Colin Seow, Arbitrator, Advocate & Mediator, Colin Seow Chambers

DK Singh, Managing Partner, KBH

Dr Mahmood Hussain, Founding Partner, M&CO Legal

Jacques Visser, Chief Legal Officer, DIFC Authority

Ludmila Yamalova, Founder & Managing Partner, HPL Yamalova & Plewka DMCC

Mohamed ElGhatit, Founder & Co-Managing Partner, OGH Legal

Muna Dandan, General Counsel, Dubai Financial Services Authority (DFSA)

Nick Braganza, Dispute Resolution Partner, Holman Fenwick Willan (Middle East) LLP

Philip Punwar, Barrister, Outer Temple Chambers

Sarah Malik, CEO & Founder, SOL International Ltd

Seema Bono, Partner, Pinsent Masons LLP

Shane Jury, Partner, Head of Commercial Disputes, Middle East, Addleshaw Goddard LLP

Tom Montagu-Smith KC, Barrister, 3 Verulam Buildings

Chairperson

H.E. Justice Ali Al Madhani, Deputy Chief Justice, DIFC Courts

Committee members

Ayesha Bin Kalban, Registrar, DIFC Courts

Adrian Chadwick, Deputy Head of Dispute Resolution Dubai and Head of Maritime, Transport & Trade, Hadef & Partners

Rita Jaballah, Partner, Head of International Litigation, Al Tamimi & Co

Nick Braganza, Dispute Resolution Partner, Holman Fenwick Willan (Middle East) LLP

Phillip Punwar, Barrister, Outer Temple Chambers

Alessandro Tricoli, Partner, Fichte & Co Legal Consultancy LLC

Sheila Shadmand, Partner-in-Charge Middle East & Africa Region, Jones Day

Graham Lovett, Partner, Akin Gump Straus Hauer & Feld LLP

Deirdre Walker, Partner Norton Rose Fulbright (Middle East) LLP

Rebecca Copley, Partner, Head of Litigation and Dispute Management

– Middle East, Head of Corporate Crime and Financial Services Disputes and Investigations Middle East, Eversheds Sutherland

David Russell KC, Barrister, Outer Temple Chambers

Sara Sheffield, Partner, Charles Russell Speechlys

Damian Crosse, Partner Pinsent Mason LLP

James Abbott, Partner, Clifford Chance

Shane Jury, Partner, Head of Commercial Disputes, Middle East, Addleshaw Goddard LLP

In-House Counsel Committee

Formerly the General Counsel Forum, the In-House Counsel Committee was re-launched in 2019 and continued with the mandate of for dialogue and liaison between the DIFC Courts and senior in-house counsel, with the inaugural refreshed committee held in December 2019. Each event brings together participants to share experiences, examine trends, and discuss global dispute resolution best practices.

Chairperson

Amna Al Owais, Chief Registrar, DIFC Courts

Committee members

Dr Abobakr Dafalla, Associate General Counsel Middle East & Africa Region, Kearney

Ali Haidar, Senior Corporate Counsel and Head of Corporate, External & Legal Affairs – UAE, Microsoft

Ayman Elnaggar, Group Head of Legal, Emaar

Dominic Varley, Executive Director- Legal, Dubai Holding

Gabriele Falda, Assistant General Counsel, Abu Dhabi Commercial Bank

Heba Hamdy, Senior Lead Counsel, KSA, North Africa & Levant Legal Sales, Cisco

Jenny Grainger, Head of Legal (Corporate & Institutional Banking), Emirates NBD Bank

Majd Nemeh, Head of Legal – Middle East, Zurich International Ltd.

Malek Al Khashashneh, Senior Legal Director, Majid Al Futtaim

Muna Dandan, General Counsel, Dubai Financial Services

Robert Lewsley, Regional Head, Disputes & Govt. Investigations Legal –Africa and the Middle East, Standard Chartered Bank

Sahia Ahmad, Chief Executive Officer, Regulatory Policy & Governance, Dubai Department of Economy and Tourism

Ziad Issa, General Counsel, EXPO 2020

Ahmed Al Shamsi, Legal Advisor, Telecommunication & Digital Government Regulatory Authority

Rick Ward, Group General Counsel, Emirates Group

Pro Bono Committee

The Pro Bono Committee is comprised of seven members and includes: The Pro Bono Programme Leader and six (6) lawyers who are registered with the DIFC Courts’ Register of Legal Practitioners.

Programme Leader

Hayley Norton, Assistant Registrar & Pro Bono Programme Leader, DIFC Courts

Committee members

Adam Bradshaw, Legal Director, DLA Piper Middle East LLP

Peter Smith, Legal Director, Charles Russell Speechlys LLP

Rebecca Kelly, Partner, Clyde & Co

Zara Merali, Counsel, Freshfields Bruckhaus Deringer

Dr Maryam-Krystyna Nechaieva, Legal Counsel, Mohammed Bani

Hashem Advocates & Legal Consultants

Janine Mallis, Senior Associate, Herbert Smith Freehills LLP

8.4

eRegistry

Among the many technologies the Courts have pioneered to increase access to justice, is the region’s first eRegistry in 2009, the first digitally integrated courtroom and state-of-the-art

e-Court system, as well as the region’s first ‘paperless’ e-bundling cloud solution in 2018. These early tech adoptions are now the bedrock that enables the DIFC Courts to maintain uninterrupted operations for court users.

By increasing the utilisation of our existing videoconferencing and teleconferencing facilities for applications and hearings, we are enabling court users and the public to access extensive eServices remotely from any smartphone, tablet, or desktop device. This enables remote 24/7 secure case progression and administration, e-payments and practitioner registration facilities.

8.5

Pro Bono Programme

The pioneering Pro Bono Programme continues with its twin aims – providing valuable free legal services to clients of the DIFC community and supporting aspiring lawyers in Dubai and across the UAE. In 2023, the Pro Bono Programme hosted its Internship Programme, welcoming law students and graduates to gain an insight into the daily running and management of the Programme.

Throughout the year, the Pro Bono Programme hosted its weekly face-to-face legal clinics, providing individuals in need with the opportunity to meet with volunteer lawyers for an in-person consultation.

In June 2023, the Pro Bono Online Portal was launched, enabling individuals to receive remote help and assistance through a dedicated platform that can be accessed anytime, anywhere, through the simple ‘click of a button’. The remote assistance is provided for those unable to attend the in-person sessions and runs alongside the face-to-face legal clinics.

This year, the Programme hosted a live webinar session for the benefit of the SMEs, startups, and employees focusing upon employment rights and practices within the DIFC.

509 INDIVIDUALS

received free legal assistance

40 VOLUNTEER

Pro Bono Programme lawyers

39 VOLUNTEER

Pro Bono Programme law firms

8.6

Communications

The DIFC Courts is committed to transparency and customer engagement. This requires regular and robust communications with stakeholders conducted via:

Website updates

Social media

Media relations

Annual report

Emailer updates

Connectivity

New partnerships 9.1

The DIFC Courts continued to strengthen its partner ecosystem and signed several agreements in 2023 with entities across the public and private sectors, as well as with academic institutions.

Umm Al Quwain Free Trade Zone (UAQFTZ)

In February, the Dubai International Financial Centre (DIFC) Courts and the Umm Al Quwain Free Trade Zone (UAQFTZ) signed a Memorandum of Understanding (MoU) to enhance cooperation between the two parties and provide an opportunity to exchange information and provide awareness to businesses in Umm Al Quwain Free Trade Zone regarding the suite of public services provided by the DIFC Courts.

Kuwait Bar Association

In March 2023, the DIFC Courts signed a Memorandum of Understanding (MoU) with the Kuwait Bar Association which serves to establish enhancement of collaboration and cooperation between the Courts and lawyers in Kuwait.

Bahrain Bar Society

In March 2023, the DIFC Courts signed a Memorandum of Understanding (MoU) with the Bahrain Bar Society which serves to establish enhancement of collaboration and cooperation between the Courts and lawyers in the Kingdom of Bahrain.

Moro Hub

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. 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.

Dubai Chambers

In October 2023, 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 promotes collaboration across specific digital economy and mediation services provided by both organisations, as well as coordinated and aligned activities with international outreach.

Ras Al Khaimah Digital Assets Oasis

In October 2023, the DIFC Courts signed an agreement with Ras Al Khaimah Digital Assets Oasis (RAK DAO) that drives greater awareness of the DIFC Courts digital economy services to businesses operating within Ras Al Khaimah’s newly launched digital economy free zone.

9.2

Outreach & engagement

An important feature of the DIFC Courts’ outreach and engagement work is welcoming delegations to Dubai and the DIFC, as well as participating in overseas trade visits and speaking at industry conferences.

Visiting delegations

Numerous delegations of government leaders, representatives of other court systems and students visited the DIFC Courts during 2023 to learn more about our judicial system, including:

JAN

• H.E. Thani Al Zeyoudi

• Middlesex University

MAR

• Consul General of Algeria

• The Consul General of the Kyrgyz Republic

• The Consul General of Israel

• Saint Joseph University

• American University in the Emirates

JUL

• The Supreme Legislation Committee

OCT

• Consul General of India in Dubai

• Law Society of England and Wales

Public engagements

Justices, Registry personnel, and the Executive Team actively promoted the work of the DIFC Courts to business and legal communities in the UAE and internationally in 2023. The team spoke at and attended many important domestic, regional, and international conferences, including:

JAN

• Russian Institute of Modern Arbitration Winter Academy 2023

FEB

• DIFC Wealth interview

• DIFC Talent Week

• Birmingham University

• Combar Roundtable

• Tel-Aviv Arbitration Week

MAR

APR

• SpaceOps23

• Inter-Pacific Bar Association (IPBA)

• Dubai New Economy Legal Forum

• Sharjah Courts

• UAQ Free Trade Zone

• EXPO 2020

• Abu Dhabi Commercial Bank (ADCB)

SEP

• Standard Chartered Bank

MAY

• Emirati Entrepreneurs’ Association (EEA)

• Centre for Aviation & Space Laws

• University of Leiden

• CIArb & SCL

• Opportunities Roundtable

• Dubai Economy & Tourism

JUN

• Forensic & restructuring Summit

• Italian Business Council

• DWTC & VARA

• Malaysian Trade Centre

• Innovation Hub

• Habib Al Mulla Academy

• Digital Future Forum

• DIFC Metaverse Accelerator

OCT

• ING Bank NOV

• Beyond the Scope

• Crypto Expo Dubai

• DIFC Employment Law; Pro Bono Programme

• Law Society of Hong Kong’s International Summit 2023

• Expand North Star

• GITEX Global

• Saint Joseph University

• American University in the Emirates

• FIRE Middle East 2023

• Dubai Arbitration Week

• Dubai Airshow

• Legislative Week 2023

• Knowledge Summit

DEC

• Ras Al Khaimah Courts

• Vernewell Group and Moon Village Association

Enforcement 9.3

Enforcement with other regional and international courts is also rising each year and our connectivity network matures. The Registry intends on building further relationships with court systems worldwide making it possible for judgment debtors to identify points of contact within courts through our existing network.

The Supreme Court of The Republic of Kazakhstan

Jordanian Ministry of Justice

The Riyadh Convention

The GCC Convention

Ras Al Khaimah

Abu Dhabi

The National Court Administration of the Supreme Court of Korea

Shanghai High People’s Court

Hangzhou Arbitration Commision

Hong Kong Special Administrative Region of the People’s Republic of China

Federal Court of Malaysia

The Supreme Court of Singapore

The Federal Court of Australia

The New South Wales Supreme Court

The Arab Republic of Egypt

The Paris Convention

The High Court of Kenya

The High Court of Zambia

Commercial Court of England & Wales

10 Innovation

10.1

tejouri

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.

Digital inheritance enables investors to designate one or several stakeholders. The chosen beneficiaries will inherit the portfolio, eliminating undue risks and continually issuing updated instructions.

To allow for more multimedia uploads, tejouri has launched two (2) new packages; Silver, Gold, and Platinum.

All packages allow for a one-time fee for every 25 years. The original package, Silver, allows for one (1) GB of secure storage, while the new Gold and Platinum packages offer 10 GB and 50 GB respectively.

SILVER

The first step towards legacy safe-keeping.

one-time fee for every 25 years

1 GB of secure storage

GOLD

Legacy safe-keeping with a bit more room.

one-time fee for every 25 years

10 GB of secure storage

PLATINUM

Legacy safe-keeping with maximum benefit.

one-time fee for every 25 years

50 GB of secure storage

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.

11Appendix

11.1

Wills & Probate

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.

As part of the UAE Government’s commitment to effectively employ advanced technologies and digital platforms to continue services to the public during the COVID-19 restrictions, the DIFC Courts leveraged its digital infrastructure to offer Will registrations through virtual signing.

With individuals and businesses across the UAE now operating more ‘remotely’, the video conferencing facility can be accessed via a smartphone, tablet, or desktop device, allowing residents and investors to register their Will, from the safety and comfort of their own homes anywhere in the world.

The online system allows the Testator and Witnesses to join in on the video conferencing call from different locations. Investors and residents can access the registration service from anywhere in the world and be connected, via video link, to a compliance officer sitting in Dubai.

Throughout 2023, 99% of our Will registrations were conducted virtually, transporting traditional walk-in appointments into the digital age.

To keep up with increasing demand, and further to the DIFC Courts’ commitment to ensuring the best possible customer service standards for our clients, the Wills Service also began offering registration slots on weekends, thus increasing its ability to accommodate investors and residents at their most convenient time.

The most noteworthy development within the ancillary services offered by the DIFC Courts was the surge in registrations of Wills: in 2023, the Wills Service registered over 1,500 Wills, a 26% increase from 2022. In addition, the total number of Probate applications related to Wills in 2023 was recorded at 28, a 21% increase from 2022.

Total number of Wills registered

1,505 28

Increase in Wills registrations

Total number of Probate applications

26% 21%

CFI 041

[DIFC CFI 041] (1) Abraaj Investment Management Limited (in official liquidation) (2) Abraaj Capital limited (in official liquidation) v (1) KPMG Lower Gulf Limited (2) KPMG (a firm) (3) KPMG LLP

In 2021, Justice Wayne Martin considered the question of whether Rule 20.7 of the Rules of the DIFC Courts (the “RDC”) is capable of conferring jurisdiction upon the Court in relation to existing parties. Justice Wayne Martin held that “the Court has jurisdiction in relation to claims against parties who would have been liable to have been joined pursuant to RDC 20.7, notwithstanding that those parties may already have been joined to the proceedings” ([132]).

The complete summary can be found in the Annual Report 2021. To read the full summary, please scan the QR code. (Linked to Annual Report 2021, page 50).

Annual Report 2021

[2021] DIFC CFI 041

The First Defendant sought permission to appeal, however, in January 2022, parties agreed on a stay of the proceedings pending the final determination of the First Defendant’s application to the Joint Judicial Committee (the “JJC”).

In September 2023, Justice Wayne Martin lifted the stay on the proceedings upon the Claimant’s application.

Justice Martin said in his reasons that “In all the circumstances of this case, given the inordinate delay [in the determination of the application to the JJC] that has occurred to date, I do not think there is any impediment to this Court exercising the power to lift the stay and indeed, to the contrary, I think it is very much and very strongly in the interests of justice for this Court to do so.”

The First Defendant’s application for permission to appeal Justice Wayne Martin’s Order in 2021 was refused on two occasions. The First Defendant has now sought to appeal the Order of Justice Wayne Martin lifting the stay on the proceedings.

CA 003

On 6 September 2023, the Court of Appeal issued a landmark judgment, overturning a Worldwide Freezing Order (“WFO”) issued by the Court of First Instance on the basis that the DIFC Courts did not have the jurisdiction to grant the WFO against the parties who had no jurisdictional nexus to the Dubai International Financial Centre (“DIFC”). The ruling confirms that injunctive relief may only be granted if a claimant can establish that the DIFC Courts have jurisdiction over the respondent under one of the statutory gateways set out within the Judicial Authority Law (the “JAL”).

The underlying claim relates to the sale of shares in Cayman Island registered companies. The Claimants commenced proceedings against the Defendants in France, the United States of America and Kuwait. The Claimants also made an application to the DIFC Courts for a WFO to prevent the dissipation of assets pending the determination of the proceedings commenced in Kuwait. The Defendants were not DIFC entities and had no connection to the DIFC.

On 20 November 2021, the Court of First Instance granted the WFO and grounded jurisdiction on Part 25.24 of the Rules of the DIFC Courts (“RDC”). Applying the previous judgment in Nest Investments v Deloitte & Touche [2018] CA 011 and Jones v. Jones [2022] CFI 043, Justice Sir Jeremy Cooke found that Part 25.24 was a “DIFC Regulation” and that, when read in conjunction Article 5A(1)(e) of the JAL, the rule was sufficient to confer a jurisdiction on the court to grant an injunction against a party whether or not they had any connection with the DIFC.

The Defendants failed to comply with the terms of the WFO and applied for the Order to be set aside. Justice Sir Jeremy Cooke refused to set aside the WFO and found the Defendants to be in contempt. The Defendants appealed to the Court of Appeal on the grounds that the Court had no jurisdiction to grant the WFO. The Defendants were successful in their appeal.

The Court of Appeal found that unless the wording is express, the provisions in the RDC read in conjunction with Article 5(1)(e) of the JAL cannot extend the jurisdiction of the DIFC Court beyond the established jurisdictional gateways of Article 5(1)(a)-(d), 5(A)(2) and 5(A)(3) of the JAL.

The Chief Justice stated that “RDC 25.24 should not be read on its own, but rather in parallel and consistent with the gateways of Article 5 of the JAL.”

The Court of Appeal recognised the underlying purpose of a freezing order as an aid to support prospective enforcement of a judgment, however it clarified that the court will only grant an injunction in support of foreign proceedings if the jurisdictional gateways in Article 5A(1)(a)-(d) are satisfied. The question is not whether it should have jurisdiction just to avoid a less corrupt and perverse outcome.

The Court of Appeal found that RDC 25.54 simply refers to procedural matters of a general power which the Court may exercise when granting interim relief in support of foreign proceedings. It is not meant to confer additional jurisdiction.

The WFO was discharged and the findings of contempt against the Defendants were overturned.

(1) Sandra Holding Ltd (2) Nuri Musaed Al Saleh v (1) Fawzi Musaed Al Saleh (2) Ahmed Fawzi Al Saleh (3) Yasmine Fawzi Al Saleh (4) Farah El Merabi [2023] DIFC CA 003