DIFC Courts Bulletin 19 (English) by difccourts

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Prototyping the future for global courts Message from the Director Page 3

January - June 2022

New Strategic Work Plan Page 6

Edition 19

Court Tech Lab Finalists Page 9

D IF CCO URTS. A E

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Table of Contents Message from the Director 2021 Annual Results overview Launch of Strategic Work Plan 2022 -2024 A day in the life of a Judicial Officer Court Tech Lab narrows down finalists Outreach and partnerships

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Message from the Director Welcome to the first DIFC Courts Bulletin of 2022. Increased digital platforms, paperless processes and virtual hearings are all now becoming the new reality. Expectations from the private sector increasingly require the bold engagement of public service. There are endless opportunities for increased service to the public, even in moments of apparent global crisis. Recognising these opportunities to further assist communities, whether individuals, SMEs, or large multi-national businesses, requires constant collaboration, innovative discussion, and the nimbleness for rapid execution. By combining a modern and flexible digital infrastructure with judicial and service excellence, the DIFC Courts will continue to set the benchmark for international commercial courts. The DIFC Courts has entered 2022 with clear intent and purpose; with the approval of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and President of the Dubai International Financial Centre, the new DIFC Courts Strategic Work Plan, 2022 – 2025, is in full effect. Encapsulated within a four-pillar mandate, the upgraded strategy outlines an ambitious drive for full digital transformation through advanced technologies to increase the efficiency of dispute resolution. A new hyperconnected judicial network will also be developed alongside cutting-edge legal procedures for enhanced accessibility to court services. The DIFC Courts plays an important role in supporting Dubai’s status as a global business hub by engendering trust, confidence, and protecting business continuity. Responding to today’s dynamic fast-evolving world, definable projects and initiatives within the new plan are custom built to elevate judicial excellence; service excellence; connectivity; and innovation. The latest Work Plan of the DIFC Courts also prescribes the replacement of outdated processes with 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. For example, 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. Future research from the DIFC Courts will combine expertise and resources to investigate handling disputes arising out of private and public blockchains, with regulation and contractual terms encoded within the smart contract. 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. In early 2022, the new Digital Economy Court assigned a group of international lawyers and industry experts to draft and approve new specialised rules for the Digital Economy Division, which have also undergone a 30-day public consultation campaign. Leading international judicial expertise is also being finalised to oversee and operate the new Court’s advanced digital infrastructure and service capabilities, with further updates on this front scheduled for the coming months. In 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 industryspecific technologies. We were fortunate to have received more than 80 applications, which made decision making very difficult. The ten shortlisted companies had the opportunity to showcase their innovative solution to a panel of private sector technology partners, as well as officials from the DIFC Courts and the Dubai Future Foundation. 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. There are endless opportunities for increased service to the public, even in moments of apparent global crisis. Recognising these opportunities to further assist communities, whether individuals, SMEs, or large multi-national businesses, requires constant collaboration, innovative discussion, and the nimbleness for rapid execution.

H.E. Justice Omar Al Mheiri Director, DIFC Courts 3

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DIFC Courts strengthens reputation as region’s ‘safe harbour’ for maturing dispute resolution In February, the DIFC Courts released its annual figures for the full year of 2021, with total a volume of 747 cases across all divisions. The main Court of First Instance (CFI) recorded 147 cases, with a total case value of AED 3.8 billion and average case value of AED 46.7 million, which also includes the Technology & Construction Division (TCD) and Arbitration Division (ARB) cases. Reinforcing the Courts’ record of certainty for business through enforceable judgments, the total value of enforcement claims filed amounted to AED 2.3 billion in 2021, an increase of 108% year-onyear, with 239 enforcement cases recorded. Cases brought before the CFI covered a range of sectors including banking and finance, construction, technology, and real estate, and involved disputes related to breach of contract, insolvency, arbitration agreements, employment, and public international law. There was also a noticeable increase in the number of opt-in cases in 2021, with 50% of claims in the CFI originating from parties electing to use the DIFC Courts to resolve their disputes.

The Small Claims Tribunal (SCT) recorded 361 cases in 2021, with 65% 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 62% of all cases in 2021, followed by employment (22%), property and tenancy (13%), and banking & finance (3%). Underlining the SCT’s increasing popularity for SME-related dispute resolution, the total value of claims recorded in 2021 was AED 36.9 million, with an average case value of AED 106,000. Awareness of the DIFC Courts services was also bolstered by cooperation agreements signed in 2021. The DIFC Courts continued to strengthen its partner ecosystem and signed several memoranda with entities across the public and private sectors, as well as with academic institutions, including, Ajman Media City Free Zone (AMCFZ), Ajman Chamber of Commerce and Industry (ACCI), Emaar Properties, Dubai World Trade Centre Authority (DWTCA), Umm Al Quwain (UAQ) Chamber of Commerce and Industry, and the American University in the Emirates (AUE).

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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.

In 2021, as a way to protect court users, reinforce the security and integrity of documentation, and eradicate tampering of official documents, the DIFC Courts acquired the qualified electronic seal solution Ethaq. Through this unique partnership with Dubai Electronic Security Center (DESC) and Digital Dubai Authority (DDA), the DIFC Courts became the first UAE Court and first Dubai entity to obtain Ethaq.

Statistics confirm that the DIFC Courts is not only maintaining all services, but is simultaneously increasing operational efficiency, substantially increasing digital Orders & Judgments, as well as over 95% of hearings conducted remotely. The DIFC Courts also confirmed its status as the first paperless Court in the region in 2021, with 100% of internal processes and customer-facing services now operating fully digital.

The full DIFC Courts Annual Report 2021 can be viewed at:

This rapid transition to fully digital remote hearings in 2021 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 before the end of 2021.

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Strategic Work Plan 2022 -2024 approved by H.H. Sheikh Maktoum bin Mohammed

In April, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and President of the Dubai International Financial Centre has approved the Dubai International Financial Centre (DIFC) Courts Strategic Work Plan 2022- 2024. H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum stressed: “The DIFC Courts has strived to set industry firsts, offering a distinctively international and experienced court service proposition, able to deal with the most complex transnational disputes. The maturity of its service mandate and the rapid pace at which this service efficiency has evolved, highlights the integral role the DIFC Courts has in supporting Dubai and the DIFC’s status as a global business hub by engendering trust, confidence, and protecting business continuity”.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum added that:

“Today, we approved the new Strategic Work Plan which serves to further instil confidence that the DIFC Courts will forge ahead to shape the new dynamics of global dispute resolution. The Strategic Work Plan is built to actively support DIFC strategic objectives and to launch a new era of legal technological infrastructure that meet current requirements”.

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Consisting of 28 projects, the new Plan supports DIFC Courts important role in reinforcing Dubai’s status as a global business hub by engendering trust, confidence, and protecting business continuity. Responding to today’s dynamic fastevolving world, definable projects and initiatives within the new plan are custom built to elevate judicial excellence; service excellence; connectivity; and innovation. 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.

The DIFC Courts Strategic Work Plan 2022 - 2024 can be viewed at:

The DIFC Courts is not only maintaining all services, but is simultaneously increasing operational efficiency, substantially expanding digital Orders & Judgments, as well as over 95% of hearings conducted remotely. The DIFC Courts also confirmed its status as the first paperless Court in the region in 2021, with 100% of internal processes and customer-facing services now operating fully digital.

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A day in the life of a Judicial Officer Maitha AlShehhi Tell us more about yourself before joining the DIFC Courts. Ever since high school, I was interested in law, therefore, my decision during senior year to pursue legal studies was easy. I hold a Bachelor’s Degree from the University of Sharjah, College of Law. My career choices were still wide, and I still wanted to explore furthermore in the field. In 2018, I decided to obtain my Master’s Degree (LLM) in International Law from the Queen Mary University of London. What was your career progression at the DIFC Courts? I first joined the DIFC Courts as a Case Progression Officer (CPO) back in 2019 and was promoted to Senior CPO in 2021, wherein I looked after the cases filed in the Court of First Instance (CFI), Court of Appeal (CA), including the Technology and Construction Division (TCD) and Arbitration Division (ARB).

This involves liaising with the parties, the Registrar and the judge assigned to that particular case from the procedural aspect of the case. Apart from that, I also handle Probate for Wills registered at the DIFC Courts Wills Service. Considering that I am also an accredited mediator from Royal Institution of Chartered Surveyors (RICS), my role has extended to sit in consultations as a Small Claims Tribunal (SCT) judge. In addition to the above, my day-to-day tasks involve checking and maintaining Registry and enquiries inboxes, attending to walk-ins who have general enquiries, or case related questions, and answering CFI related enquiries. Outside of work, how do you like to spend your free time? This might sound like a cliché, but I really do like to spend time with family and friends. Quality family time, for me, comes before all. I am also the ‘foodie’ in the family and like to explore and try new restaurants and cafes. What better way to spend my free time other than joining the two together? You will always find me in the new café in town with my family and friends. On the days I prefer downtime, I enjoy watching my favourite series, and occasionally read a rom-com novel. What is next for you at the DIFC Courts? Within my time at the Courts, I have decided to proceed in the judicial path to advance my career and, excitingly, I recently received a promotion to Judicial Officer at the DIFC Courts. This advancement comes in line with the establishment of the new Digital Economy Division at the DIFC Courts. Having spent all my time in the Registry and handling the procedural aspect of the case, I look forward to exploring in more depth the application of new Rules by the bench.

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Court Tech Lab narrows down finalists

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applications

shortlisted

finalists

In 2019, the DIFC Courts and Dubai Future Foundation (DFF) partnered to launch the world’s first Court Tech Lab. In exploring how judicial systems can be strengthened through technology, the Court Tech Lab united companies and court system helping to prototype and launch the advancement of justice technology, such as Blockchain powered initiatives, AI enabled programmes and cloud-based solutions. The Court Tech Lab is mandated to help cultivate those ideas by running a competition cycle, helping to raise support and capital for companies demonstrating promising breakthroughs in the arena of court tech. Harnessing the established framework and talent pool from Dubai Future Accelerators, the competition invited start-ups, scale-ups and innovative SME participants to submit and present new, viable and court technology solutions. In 2021, the Court Tech Lab initiative Phase I was activated, with companies entering a competition in conjunction with DFF’s Accelerator Programme in Area 2071. Challenges assigned for the participants a.

How might we provide court users trying to represent themselves at the Small Claims Tribunal the ability to seamlessly navigate the claim form?

Phase I also consisted of reviewing all proposals and shortlisting solution providers for each challenge. The ten (10) shortlisted companies had the opportunity to showcase their innovative solution to a panel of private sector technology partners, as well as officials from the DIFC Courts and the Dubai Future Foundation. In 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 was the prototyping stage for the 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 are FaceKi and CourtCorrect, who provided solutions to their assigned challenge. The two companies provided AI-based, user friendly, and secure solutions. The new era of justice technological disruption, working to replace outdated processes with digital technology is the key to creating real judicial efficiency and certainty for businesses. The DIFC Courts will be closely monitoring and testing the solutions on its court systems before building them into our infrastructure for 2023.

b. How might we facilitate anyone seeking to register, witness, or amend a Will by verifying themselves digitally and accurately anywhere in the world?

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Outreach and partnerships

H.E. Justice Omar Al Mheiri, Director; and the DIFC Courts team were pleased to welcome HE Dr Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs. HE Dr Ahmad Belhoul Al Falasi had an overview of the Courts’ services, procedures, and recently launched projects.

The DIFC Courts announced new agreements with Enjaz Government Transaction Center, Tableegh Legal Notifications Services, and Auction Apps Auction Organising, which serve to expand the service offerings of the DIFC Courts and to support court user service preferences.

During a relation building trip to Sultanate of Oman, Zaki Azmi, Chief Justice; H.E. Justice Ali Al Madhani, Senior Judge of Court of Appeal and Head of International Relations of Judicial Affairs; 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, Senior Judge of Court of Appeal & Head of International Relations of Judicial Affairs; H.E. Justice Nassir Al Nasser; and the DIFC Courts team were pleased to welcome H.E. Sheikh Dr Khalid Al-Yousef, Chairman of the Board of Grievances.

H.E. Justice Omar Al Mheiri, Director, and the DIFC Courts personnel were pleased to welcome the Belgian Finance Center and the FinTech Belgium delegation.

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H.E. Justice Omar Al Mheiri, Director of the DIFC Courts, visited Dubai International Arbitration Centre (DIAC) where he was received by Mr. Rashid Shahin, Director of DIAC. They discussed strengthening the co-operation between DIAC and DIFC Courts and the development of ADR in Dubai.

H.E. Justice Omar Al Mheiri, Director; H.E. Justice Nassir Al Nasser; and the DIFC Courts personnel were pleased to welcome the Supreme Court of the Republic of Kazakhstan delegation.

Ayesha Bin Kalban, Deputy Registrar & Small Claims Tribunal (SCT) Registrar, DIFC Courts, spoke at the Digital Transformation Summit UAE 2022. The panelists discussed ‘Finding the balance – Bridging the gap between legacy and future thinking’. H.E. Justice Ali Al Madhani, Head of International Relations of Judicial Affairs; Amna Al Owais, Chief Registrar; and the DIFC Courts team have welcomed Rashid Al Nuaimi, Advisor - Strategic Planning and Institutional Performance Management; and Abdulaziz Al Jabri, Administrative Assistant, Ministry of Tolerance.

The College of Law at the United Arab Emirates University, organised a legal seminar on the ‘Arbitration of Contract Disputes’ for postgraduate students, presented by H.E. justice Shamlan Al Sawalehi, Court of Appeal Judge and Judge in Charge of the Arbitration Division, DIFC Courts.

The DIFC Courts and the University of Sharjah (UoS) signed a Memorandum of Understanding (MoU) that fosters attraction and competitiveness for the next generation of law students.

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