VIEWPOINT
LAW IN THE DIGITAL ERA PARNIKA CHATURVEDI, PARTNER, AND DANIEL XU, PARTNER – KING & WOOD MALLESONS, ON THE LEGAL FRAMEWORKS TO SUPPORT DUBAI’S DIGITAL ECONOMY TRANSFORMATION
W
ith the rapid growth of the digital economy and its continued integration into our everyday lives, it has now become more essential than ever to ensure that a secure and reliable ecosystem is available to investors, users and businesses. The Dubai Government has been at the forefront of developing and implementing advanced infrastructure, specialised legislations and judicial systems, which are pivotal to establishing a strong framework to support digital transformation. In recent times, the two key legal developments surrounding the virtual and digital landscape have been: 1. Establishment of the Specialised Court for the Digital Economy as part of the Dubai International Financial Center (“DIFC”) Courts. 2. Promulgation of Dubai Law No 4 of 2022 34
CXO INSIGHT ME
JUNE 2022
on the Regulation of Virtual Assets in the Emirate of Dubai (“Virtual Asset Law”). Specialised Court for the Digital Economy in the DIFC On 14 December 2021, the DIFC Courts announced the launch of a Specialised Court for the Digital Economy (“Digital Economy Court”) to resolve disputes relating to current and emergent technologies, including digital assets, cryptocurrency, big data, blockchain technologies, artificial intelligence, cloud services, unmanned aerial vehicles, 3D printing technologies, and robotics. This specialised judicial tool has been introduced to meet the specific needs of the digital economy sector. The Digital Economy Court will be operated by eminent judicial experts and supported by solid and reliable infrastructure and service providers.
It can further be expected that the Digital Economy Court will complement the existing divisions, including the Technology and Construction Division and the Arbitration Division. The proposed draft Digital Economy Court Rules, which were in the consultation phase until 20 April 2022, provide deep insight into the expected jurisdiction and powers of the Digital Economy Court. Some of the salient features of these draft Rules are: • Granting the Digital Economy Court wide powers and jurisdiction over disputes » The draft Rules provide a nonexhaustive definition of the type of claims that are suitable for determination by the Digital Economy Court. This includes any claims involving issues relating to the digital economy, thereby, creating a real possibility of an
