DIFC Courts Bulletin Edition 21 (English)

Bulletin Sustainable IT infrastructure

3Message from the Director

6Increased caseload

8Sustainable IT infrastructure

CONTENTS TABLE OF

Message from the Director

Increased caseload alongside newly engineered services

3 4 8 10 6

Reinforcing commitment to sustainable IT infrastructure

Launch of the new Schedule of Fees and Guidance Note

Outreach and partnerships

Message from the Director

Welcome to the first DIFC Courts Bulletin of 2023.

Undoubtedly, the last number of years have forced us all to ask profound questions regarding our business models, delivery of services or products, engagement techniques and digital transformation demands.

We have all been forced to conduct deep dives into how we are conducting operations and ask ourselves, honestly, if we are equipped to proceed across redrawn landscapes. We at the DIFC Courts have certainly conducted these exercises. Does society want people to feel confident in solving their problems in a court?

For too long courts in many jurisdictions have taken the view that they are a necessity, that citizens and residents must use them, and, with that mind-set, many have lost sight of their role in serving the community.

Can we change the perception of the courts system, of access to justice, and of litigation? We in Dubai certainly think so.

Following the launch of our new Strategic Work Plan in 2022, the DIFC Courts has pushed ahead with efficiency upgrades, digital infrastructure upgrades and increased services for the general public and for businesses. The DIFC Courts Strategic Work Plan outlines further end-toend digital technology, ensuring court systems are smart, user-friendly, and agile enough to keep pace with global commerce.

Innovative implementations will bridge barriers of language, borders, jurisdiction, and currency. AI will reduce clerical burdens, help streamline the case review methodology, create a realistic virtual presence, remove document duplications, and unlock time to take on significantly more complex tasks.

The first six (6) months of 2023 has witnessed a surge in uptake of not only our well-established paths of dispute resolution, but also utilisation of newer, wider ranging and digitally orientated services.

We have continued in our mission to offer the most efficient litigation, mediation, and arbitration-related mechanisms, but also absorbed new court users across our portfolio of ancillary services, such as Will registrations and adoption of our new digital vault, tejouri.

At the core of our strategy is the alignment and cohesion with national projects and initiatives, complimenting 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 overarching and ambitious plans of the region’s leading financial centre.

According to the World Economic Forum (WEF), an estimated 70% of new value created in the economy over the next decade will be based on digitally enabled platform business models.

Whilst such a widening of the digital economy will bring unprecedented advantages, it will also garner increased risk. Implications for cross-border data flows, digital and data governance, and ensuring protection and security of information for the business relationships that help drive the digital economy, are now being reviewed with accelerated intent.

Some may call it disruption and argue the limitations to such constant reinvention and repurposing – that is for each organisation to self-assess, but at the DIFC Courts we have always thrived on pushing the boundaries, living, and growing through a philosophy of courts as a service and not a place.

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

DIFC Courts manages increased caseload alongside newly engineered services for future digital economy

In February, the DIFC Courts released its annual figures for the full year of 2022, with total a volume of 861 cases across all divisions, a 15% increase from 2021.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, and President of the Dubai International Financial Centre (DIFC), affirmed that the DIFC Courts strategy is inspired by the vision of Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai to set new standards in settling judicial disputes and consolidate our global financial position according to Agenda D33.

His Highness also added: “We are committed to the continuous development of the DIFC Courts in a way that enhances the operational environment and the legal and regulatory frameworks that ensure providing the best level of services to major international financial companies. We are working to align the Courts’ strategy with the objectives of the Dubai Economic Agenda (D33) in order to position Dubai as one of the most important and best financial centres regionally and globally.”

In 2022, the main Court of First Instance (CFI) recorded 121 cases, with a total case value of AED 4.4 billion, marking a year-on-year increase of 16%. An average case value of AED 58.3 million was recorded across CFI cases, a 25% increase from 2021. Cases related to the Arbitration Division of the DIFC Courts recorded the most substantial rise in 2022; the total value of cases was AED 1.2 billion, marking an increase of over 700%, with the average case value recorded at AED 94 million. Cases brought before the CFI covered a range of sectors including banking and finance, real estate, retail, manufacturing, hospitality, and involved disputes related to breach of contract, insolvency, arbitration agreements, and employment. A noticeable increase in the number of ‘opt-in’ cases was recorded in 2022, with 60% of claims in the CFI originating from parties electing to use the DIFC Courts to resolve their disputes.

The Small Claims Tribunal (SCT) recorded 472 cases in 2022, an increase of 31% compared with 2021, with 59% of claims in the SCT originating from parties electing to use the DIFC Courts to resolve their disputes.

Cases were driven primarily by breach of contract, which represented 49.4% of all cases in 2022, followed property and tenancy (29.4%), employment (20.6%), and banking & finance (0.6%). Underlining the SCT’s increasing popularity for SME-related dispute resolution, the total value of claims recorded in 2022 was AED 43.2 million, an increase of 17% compared with the same period in 2021. The average case value recorded at the SCT for 2022 was AED 95,000.

The DIFC Courts launched a new roadmap for the years 2022-2024, which included a strategic work plan that brings more national cohesion to the Courts’ projects and initiatives, in order to provide effective support for the federal and local strategic goals and the Centre’s goals.

The DIFC Courts Strategic Work Plan adopts end-to-end digital technology, ensuring court systems are smart, user-friendly, and agile enough to keep pace with global commerce. Innovative implementations will bridge barriers of language, borders, jurisdiction, and currency. AI will reduce clerical burdens, help streamline the case review methodology, create a realistic virtual presence, remove document duplications, and unlock 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 addition, the DIFC Courts also 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.

In 2022, the Court Tech Lab initiative was activated, with companies entering a competition in conjunction with Dubai Future Foundation’s Accelerator Programme in Area 2071. In exploring how judicial systems can be strengthened through technology, the Court Tech Lab unites individuals and companies helping to prototype and launch the advancement of court-based technology. Phase II of the Court Tech Lab initiative was concluded, 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 solutions. The finalists were FaceKi from Bahrain and CourtCorrect from the UK, who provided solutions across AI and facial-recognition technologies.

In 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 now transfer this 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.

Statistics confirm that the DIFC Courts is not only maintaining all services, but is simultaneously increasing operational efficiency, substantially increasing digital Orders & Judgments, issuing over 1,500 in digital format in 2022, as well as over 95% of hearings conducted remotely. This rapid transition to fully digital remote hearings also aligns the DIFC Courts with the directive issued in June 2021 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, with the Ministry of Justice instructed to hold 80% of litigation sessions virtually on a permanent basis.

121

AED AED

4.4

Courts of First Instance (CFI) cases recorded in 2022

Total case value across all Divisions

BILLION MILLION

58.3

CFI average case value

To view the full Annual Report 2022, please scan the QR code.

DIFC

Courts reinforces commitment to sustainability with IT infrastructure at world’s largest solar-powered data centre

In March, the DIFC Courts has 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 is a subsidiary of Digital DEWA, the digital arm of Dubai Electricity and Water Authority (PJSC). It’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.

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 will offer 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 its needs change.

“We are pleased to collaborate with the Dubai International Financial Centre (DIFC) Courts. Moro Hub and DIFC Courts represent a shared vision that focuses on sustainability. We are confident that having them as a key associate with our data centre will help both the organisations accelerate towards the net zero goals strategically. Being equipped with the latest technologies and solutions, Moro Hub’s largest solar-powered data centre is a great platform for the DIFC Courts to host their critical data and information. We are confident that this transition will not only enable the DIFC Courts to increase efficiencies, but also improve cost effectiveness. Moreover, the data centre can provide the DIFC Courts with services to scale their needs as an when required, enabling them to make business-critical transactions with speed and ease,” said Mohammad bin Sulaiman, CEO of Moro Hub.

Moro Hub’s green data centre features ground-breaking solutions from Dell Technologies, Microsoft, and Huawei, including the latest advances in cybersecurity and cyber recovery as a service, cloud services, artificial intelligence (AI), Internet of Things (IoT), Moro Open Cloud and more. Using 100% renewable energy, the Uptime TIER III-Certified data centre has a capacity exceeding 100 megawatts (MW).

operational efficiency, substantially increasing digital Orders & Judgments, issuing over 1,500 in digital format in 2022, as well as over 95% of hearings conducted remotely.

This rapid transition to fully digital remote hearings also aligns the DIFC Courts with the directive issued in June 2021 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, with the Ministry of Justice instructed to hold 80% of litigation sessions virtually on a permanent basis.

To view the full Schedule of Fees and Guidance Note, please scan the QR codes

Schedule of Fees

Launch of the new Schedule of Fees and Guidance Note

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.

Guidance Note

Outreach and partnerships

The DIFC Courts signed an MoU with the Bahrain Bar Society. The MoU establishes the enhancement of collaboration and cooperation between the Courts and the lawyers in Bahrain.

Zaki Azmi, Chief Justice; and H.E. Justice Omar Al Mheiri, Director, DIFC Courts, were pleased to welcome the Consul General of Kyrgyz Republic

Zaki Azmi, Chief Justice; and H.E. Justice Omar Al Mheiri, Director, DIFC Courts, were pleased to welcome the Consul General of Algeria.

H.E. Justice Omar Al Mheiri, Director; and the DIFC Courts team were pleased to welcome H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade. During the visit, parties discussed the DIFC Courts contributions to making the UAE a globally competitive business ecosystem.

The DIFC Courts was pleased to hold a Suhoor networking event for the legal community.

H.E. Justice Omar Al Mheiri, Director, led the DIFC Courts team on a visit to Dubai Chambers where they met Mohammad Ali bin Rashed Lootah, President and CEO; and the Dubai Chambers team. During the visit, both entities discussed key initiatives and future strategic alignment for the ‘D33’ agenda.

The Chief Justice of the DIFC Courts, Zaki Azmi, was pleased to meet with His Excellency Sheikh Nahayan Mabarak Al Nahayan, Member of the Cabinet and Minister for Tolerance, for Iftar.

Zaki Azmi, Chief Justice, DIFC Courts, was pleased to welcome the Consul General of Israel in Dubai.

CPI Media Group and TahawulTech awarded the DIFC Courts the 'UAE Empowerment Initiative of the Year' award at the GovTech Innovation Awards for the tejouri service.

The DIFC Courts signed an MoU with the Kuwait Bar Association. The MoU establishes the enhancement of collaboration and cooperation between the Courts and the lawyers in Kuwait.

The DIFC Courts and Umm Al Quwain Free Trade Zone (UAQFTZ) signed an MoU to enhance cooperation between the two parties and provide an opportunity to exchange information and provide awareness to businesses in UAQFTZ regarding the suite of public services provided by the DIFC Courts.

H.E. Justice Shamlan Al Sawalehi, Court of Appeal Judge & Judge in Charge of Arbitration Division, DIFC Courts, during his several participations at the Tel Aviv Arbitration Week.

H.E. Justice Omar Al Mheiri, Director; and the DIFC Courts team were welcomed by H.E. Abdulla Al Falasi, Director General; and the Dubai Government Human Resources Department team. Parties discussed the Courts’ latest updates and developments.