DIFC Courts Bulletin Edition 20 (English)

Bulletin tejouri

Message from the Director

Welcome to the second DIFC Courts Bulletin of 2022.

The second six months of 2022 saw the DIFC Courts continue its ambitious drive for increased digital transformation through advanced technologies to increase the efficiency of dispute resolution. 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.

A new hyperconnected judicial network was developed alongside cutting-edge legal procedures and specialised Rules for enhanced accessibility to court services. In July 2022, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, issued Decree No. 29 of 2022 promoting His Excellency Justice Ali Shamis Al Madhani to Deputy Chief Justice, and appointing Justice Michael Black to oversee the newly established Digital Economy Court (DEC) Division.

Speaking on the occasion, HH Sheikh Mohammed bin Rashid highlighted the importance of constantly enhancing the DIFC’s judicial framework in order to further raise the confidence of the local and global business community. He also stressed the significance of upholding the rule of law and maintaining the highest transparency and neutrality in the settlement of commercial and civil disputes, in accordance with the highest global benchmarks.

These judicial appointments were also complimented by the finalisation and launch of a new set of industry-first specialised Rules for its recently formed Digital Economy Court (DEC) Division. 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, 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.

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 our new digitally driven societies, we are all accumulating mass amounts of important documentation, whether it is for professional or personal purposes. During the GITEX Global technology conference in October, the DIFC Courts launched ‘tejouri’, a new global vault digital service.

The new ‘digital home for your legacy’ 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. The DIFC Courts, together with its public and private sector partners, is proud to be able to offer this distinctive service to the public, and to help contribute to a safer digital environment for all.

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

Rapid execution of new strategy widens appeal of jurisdiction for international business community

In July 2022, the DIFC Courts released its figures for the first six months of 2022, reaffirming increased efficiency of process for businesses engaged with the region’s prime jurisdiction for dispute resolution.

The volume of cases across all Divisions recorded a 10% increase in the first half of 2022, compared with the first six months of 2021, with a total value of AED 1.9 billion. In the main Court of First Instance (CFI), 44 cases were filed, with the total value of AED 1.87 billion and an average case value of AED 53.3 million. Cases within the Arbitration Division under the CFI also recorded an increase in the first six months of 2022, with a total value of AED 1 billion and an average claim value of AED 130 million.

Claims brought before the CFI covered a range of sectors including banking and finance, real estate, manufacturing, retail, and hospitality, and involved 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 2022, with 50% 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 2022, with 263 claims filed, an increase of 31% year-on-year and an overall claim value

totaling AED 23.8 million, a 16% increase for the same period in 2021. Claims were driven primarily by disputes involving breach of contract, employment, banking & finance, and property & tenancy. Increased remote virtual hearings through the region’s first “Smart SCT” virtual court, have led to over 62% of claims registered originating from parties selecting the SCT as their preferred method for dispute resolution.

Reinforcing the paperless mission of the DIFC Courts, over 650 digital Orders were issued in the first six months of 2022, and a further 66 Judgments issued for the same period.

In the first six months of 2022, Phase II of the Court Tech Lab initiative was launched, with the project R&D programme launched to position Dubai as the city that pioneers new industry-specific technologies. Phase II involved a prototyping stage for two finalists, where they received financial support, as well as access to the DIFC Courts to research, test, and adapt the technology solution. The finalists were FaceKi from Bahrain and CourtCorrect from the UK, who provided solutions to their assigned challenge.

To view the half year Fact Sheet, please scan the QR code

H.H. Mohammed bin Rashid promotes and appoints judges at the DIFC Courts

In July, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued Decree No. 29 of 2022 promoting His Excellency Justice Ali Shamis Al Madhani to Deputy Chief Justice, and appointing new judges at the Dubai International Financial Centre (DIFC) Courts.

The virtual swearing-in ceremony was held in the presence of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance of the UAE, and the President of the Dubai International Financial Centre (DIFC).

Speaking on the occasion, H.H. Sheikh Mohammed bin Rashid highlighted the importance of constantly enhancing the DIFC’s judicial framework in order to further raise the confidence of the local and global business community. He also stressed the significance of upholding the rule of law and maintaining the highest transparency and neutrality in the settlement of commercial and civil disputes,

in accordance with the highest global benchmarks. The ceremony was also attended by His Excellency Essa Kazim, Governor of DIFC; Justice Zaki Azmi, Chief Justice of the DIFC Courts; and His Excellency Justice Omar Al Mheiri, Director of the DIFC Courts.

The DIFC Courts, which is considered the foremost English language common law jurisdiction in the region, offers a transparent and independent legal environment led by distinguished internationally renowned judges.

Global digital vault ‘tejouri’‘digital home for your legacy’ - launched at GITEX

Global 2022

In October 2022, the DIFC Courts announced the launch of a global digital vault. ‘tejouri’ was unveiled at GITEX Global, with live demonstrations showcasing the new platform’s functionality and security protocol features.

The new ‘digital home for your legacy’ 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 are 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), tejouri ensures the transmission of your entire portfolio to your designated stakeholders, or loved ones, at a key time.

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 will be restricted to the ‘vault holder’ and the listed intended recipients, guaranteeing zero knowledge proof privacy principles.

For more information about the tejouri service, please scan the QR code

In December 2022, the DIFC Courts announced the launch of a new set of industry-first specialised Rules for its recently formed Digital Economy Court (DEC) Division.

In addition, leading international judicial expertise has been recruited to oversee and operate the new Court’s cutting-edge 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, has appointed Justice Michael Black of England & Wales, who will oversee the Digital Economy Court Division.

Following the announcement of the dedicated Division in 2021, a global panel of lawyers, led by Tom Montagu-Smith KC and Matthew Watson of 3VB Chambers, and industry experts, were tasked to draft and confirm new specialised Rules, which were also subject to a 30-day public consultation and finalised under the supervision of Justice Michael Black.

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, the new ‘Part 58’ of the DIFC Courts Rules will 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.

Digital Economy Court unveils new specialised Rules

In 2021, the DIFC Courts established the Digital Economy Court Division 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.

In 2022, the DIFC Courts issued a judgment in the case of (1) Gate Mena DMCC (2) Huobi Mena FZE (1) Tabarak Investment Capital Limited (2) Christian Thurner which related to 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.

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.

To view the full Digital Economy Court Rules, please scan the QR Code

“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.”

Outreach and partnerships

During a trip to Sultanate of Oman, Zaki Azmi, Chief Justice; H.E. Justice Ali Al Madhani, Deputy Chief Justice; and the DIFC Courts team were welcomed by the Chief Justice of Court of First Instance – Muscat, Chief Justice of the Execution Court, Chairman of the Board of Directors of the Omani Bar Association, members of the Supreme Court in Muscat, and the UAE Embassy in Muscat.

H.E. Justice Ali Al Madhani, Deputy Chief Justice welcomed Mohamed AlEghfeli, Vice President, and the Emirates Association for Lawyers and Legal members.

H.E. Justice Ali Shamis Al Madhani, Deputy Chief Justice, DIFC Courts, was pleased to attend the Saudi Law Conference 2022, where he presented the Courts’ case management system and its latest developments.

H.E. Justice Omar Al Mheiri, Director, DIFC Courts was pleased to welcome Dr Tariq Al Tayer, Chairman - Board of Directors, Dubai International Arbitration Centre (DIAC).

H.E. Justice Omar Al Mheiri, Director, DIFC Courts, was pleased to welcome Dr Pierre Mallet, Acting College Dean, and the Ajman University faculty. During the visit, parties discussed ways to collaborate on several academic and training fronts.

H.E. Justice Omar Al Mheiri, Director; and the DIFC Courts team were pleased to welcome Abdulla Bin Khediya, Director - Air Transport Department; and the Dubai Civil Aviation Authority (DCAA) team. Parties discussed ways for future collaboration and knowledge-sharing programmes.

The DIFC Courts signed an MoU with the Fujairah Chamber of Commerce and Industry to enhance cooperation between the two parties and provide an opportunity to exchange information and experience in areas of common interest to reinforce their strategic goals and interests.

H.E. Justice Omar Al Mheiri, Director; and the DIFC Courts team were pleased to welcome Hassan Bedaiwi, President; and the Bahrain Bar Association team.

The DIFC Courts hosted its first event during Dubai Arbitration Week (DAW) with a session focused on a 360 resolution - the role of national commercial courts for arbitration-related cases.

H.E. Justice Shamlan Al Sawalehi, Court of Appeal Judge & Judge in Charge of Arbitration Division, met Professor Julian DM Lew, Professor of International Arbitration Law and Head of the School of International Arbitration, Queen Mary University of London.

Ayesha Bin Kalban, Registrar, DIFC Courts, was pleased to welcome the Ras Al Khaimah (RAK) Courts delegation.

On a trip to the Kingdom of Saudi Arabia (KSA), Zaki Azmi, Chief Justice; H.E. Justice Ali Al Madhani, Deputy Chief Justice; and the DIFC Courts team were welcomed by the Saudi Ministry of Justice’s Undersecretaries and Chief Justices.