UAE: DIFC courts settle over 860 cases worth AED4.4 billion in 2022 – News

The Main Court of First Instance records 121 cases with a total case value of AED4.4 billion, up 16% year-on-year

The Dubai International Financial Center (DIFC) Courts today released annual figures for the full year 2022, with a total of 861 cases across all sectors, an increase of 15 per cent compared to 2021.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, UAE Deputy Prime Minister and Minister of Finance and Chairman of Dubai International Financial Center (DIFC), confirmed that the DIFC Court Strategy was inspired by His Highness’s VISION H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, sets new standards for resolving judicial disputes and strengthening our global financial position under Agenda D33.

His Highness also added: “We are committed to the continued development of the DIFC Courts to improve the operating environment and the legal and regulatory framework to ensure the best level of service to major international financial companies. We are working to align the Court’s strategy with the Dubai Economic Agenda (D33 ) in order to position Dubai as one of the most important and best financial centers in the region and globally.”

In 2022, the main courts of first instance (CFI) recorded 121 cases with a total case value of AED4.4 billion, a year-on-year increase of 16%. The average case value of CFI cases is AED 58.3 million, an increase of 25% compared to 2021. Cases related to the arbitration arm of DIFC courts will record the largest increase in 2022; with a total case value of AED 1.2 billion, an increase of more than 700%, with an average case value of AED 94 million.

Cases submitted to CFI span a variety of industries including banking and finance, real estate, retail, manufacturing, hospitality, and involve disputes related to breach of contract, bankruptcy, arbitration agreements, and employment. In 2022, there will be a significant increase in the number of ‘opt-in’ cases, with 60% of claims in CFIs originating from parties opting to use the DIFC courts to resolve their disputes.

The Small Claims Tribunal (SCT) recorded 472 cases in 2022, a 31% increase on 2021, with 59% of claims in the SCT originating from parties who chose to use the DIFC courts to resolve their disputes.

Cases were primarily driven by default, accounting for 49.4% of all cases in 2022, followed by property and leases (29.4%), employment (20.6%) and banking and finance (0.6%). The total value of claims recorded in 2022 was AED 43.2 million, an increase of 17% compared to the same period in 2021, underscoring the growing popularity of the SCT in resolving disputes related to SMEs. The average case value recorded by the SCT in 2022 is AED 95,000.

In 2022, the main courts of first instance (CFI) recorded 121 cases with a total case value of AED4.4 billion, a year-on-year increase of 16%. The average case value of CFI cases is AED 58.3 million, an increase of 25% compared to 2021. Cases related to the arbitration arm of DIFC courts will record the largest increase in 2022; with a total case value of AED 1.2 billion, an increase of more than 700%, with an average case value of AED 94 million.

Cases submitted to CFI span a variety of industries including banking and finance, real estate, retail, manufacturing, hospitality, and involve disputes related to breach of contract, bankruptcy, arbitration agreements, and employment. In 2022, there will be a significant increase in the number of ‘opt-in’ cases, with 60% of claims in CFIs originating from parties opting to use the DIFC courts to resolve their disputes.

The DIFC Courts has launched a new roadmap for 2022-2024, which includes a strategic work plan that brings more national cohesion to the Court’s projects and initiatives in order to provide effective input to federal and local strategic objectives as well as the Centre’s objectives support.

The DIFC Courts Strategic Work Plan uses end-to-end digital technology to ensure the court system is smart, user-friendly and agile enough to keep pace with global commerce. Innovative implementations will bridge language, border, jurisdictional and currency barriers. AI will reduce the paperwork burden, help streamline case review methods, create a lifelike virtual presence, eliminate duplication of documentation, and free up time for more complex tasks.

Zaki Azmi, Chief Justice of the DIFC Courts, said: “In 2022, the DIFC Courts will not only see a significant increase in the number of cases but also design new core operational services available to the public. The DIFC Courts are playing a role in supporting DIFC and Dubai’s position as a leading financial centre. An integral role. The rule of law, including commercial dispute resolution, is a key driver of economic growth. Reliable, fast and transparent commercial dispute resolution is a key decision-making factor for international investors, creating a competitive advantage for countries with efficient and transparent systems .”

In 2022, the DIFC Court confirmed the launch of new dedicated rules for its Digital Economy Court (DEC) division. The rules promote the efficient and modern resolution of disputes in the digital economy, standardizing the use of smart forms to deliver information through a dynamic, AI-driven platform.

In addition, the DIFC court delivered its judgment in one of the first cryptocurrency litigation disputes in the region and one of the few reported cases in the world concerning the secure transfer of cryptocurrencies between buyers and sellers and the obligations owed by Custodians of cryptocurrencies. The case raises all sorts of other interesting questions, such as the nature of bitcoin, whether the cryptocurrency is considered a commodity, currency, property or something else entirely, and the appropriate time to value bitcoin.

His Excellency Omar Al Mheiri, Director of the DIFC Courts, said: “As a UAE Court, we continue to demonstrate that our service offerings and operational capabilities have grown year on year. The concepts of quality and excellence are no longer associated with the private sector. In fact, society adapts to the Court The ever-changing expectations of users and the increasing expectations of behavior.Increasingly digital platforms, paperless processes and virtual hearings are now becoming the new reality.

Private sector expectations increasingly demand bold engagement by public services. By combining a modern and flexible digital infrastructure with judicial excellence and service, DIFC Courts will continue to align our business with the national agenda. As the UAE begins to nurture new verticals of the digital economy, the number of foreign organizations entering the market will inevitably increase. The DIFC Courts have a role to play in ensuring these businesses we are on call to resolve new types of cases and disputes. “

In 2022, the Court Tech Lab initiative was launched, and companies entered the competition with the Dubai Future Foundation’s accelerator program in District 2071. In its quest to explore how technology can enhance the justice system, the Court Tech Lab brings together individuals and companies to help prototype court technology advancements. The second phase of the Court Tech Lab program has concluded, launching a project research and development program that positions Dubai as a city leading the way in new industry-specific technologies.

The second phase involved a prototyping phase for the two finalists, where they received financial support as well as access to the DIFC courts to research, test and adapt technical solutions. The finalists are FaceKi from Bahrain and CourtCorrect from the UK, who offer solutions across artificial intelligence and facial recognition technology.

In 2022, the DIFC Courts launched a global digital vault designed to help with the storage and security of documents and enable individuals to move this data to a secure location. ‘tejouri’ supports uploading and secure storage of documents ranging from insurance contracts, title deeds, wills and financial certificates to images and multimedia files, making them available to everyone around the world.

All uploaded life management files will be protected under the highest security regulatory standards using multi-factor authentication, encrypted data, personalized biometric information and ledgers kept through advanced cryptography. Using distributed ledger technology (DLT), the vault can also ensure that your entire portfolio is transmitted to your designated stakeholders or loved ones at critical moments.

Statistics confirm that DIFC courts are not only maintaining all services, but are simultaneously increasing operational efficiency, with a substantial increase in digital orders and judgments, with over 1,500 issued in digital format by 2022, and over 95% of hearings being conducted remotely.

This rapid transition to fully digital remote hearings also brings the DIFC courts into line with the June 2021 directive issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. Unanimously, the Justice Department was directed to hold 80% of the litigation sessions almost permanently.