All over the world, industries, businesses, and service providers are increasingly incorporating digital technology into their core operations. In Dubai, the DIFC Courts introduced the Digital Economy Court Division.
DIFC Digital Economy Court
In 2021, the Dubai International Finance Centre (DIFC) Courts launched the Digital Economy Court (DEC) Division. The courts were tasked with the responsibility to handle all current and new technological-related issues and cases within and outside the country. These technologies include big data, blockchain, AI, fintech, cloud services, 3D printing, and robotics.
This court is under ‘Part 58’ of the DIC Courts Rules. This development birthed new regulations formed under the guidance of a panel. This panel had an extensive list of international lawyers and industry experts. They worked on streamlining the resolution process for digital economy disputes and promoting the use of smart forms to provide information via a dynamic, AI-driven platform.
Progress So Far
In 2022, the DIFC courts delivered a judgment in one of the earliest cryptocurrency disputes in the region. This judgment tackled pivotal issues surrounding the secure transfer of cryptocurrency between transacting parties and the responsibilities of a custodian for cryptocurrency assets.
The case involving Gate MENA DMC versus Tabarak Investment Capital Limited delved into the legal obligations associated with the storage of cryptocurrencies.
This case represented one of the inaugural cryptocurrency litigation disputes in the region. It was among the few reported cases worldwide addressing concerns such as the secure transfer of cryptocurrency between buyers and sellers and the duties owed by cryptocurrency custodians. It also prompted questions about the classification of Bitcoins, whether they are commodities, currencies, properties, or possess a distinct categorization, and the appropriate valuation timing for Bitcoins.
The Dubai International Finance Centre (DIFC) Courts
The DIFC Courts, birthed in 2004, is Dubai’s most popular international English-language common law judiciary. These courts are very important in the UAE’s legal space. Originally, it was specifically aimed at instilling confidence in the international community about the Emirate’s legal structure. It also focused on fostering stronger investment and trade relations with Dubai and the UAE.
In 2011, the DIFC Courts expanded their jurisdiction beyond the financial center for international businesses. This extension allowed any two parties from anywhere in the world to use the DIFC Courts by voluntarily opting into this neutral global jurisdiction.
In 2017, the DIFC Courts partnered with the Dubai Future Foundation (DFF) to release “Courts of the Future”. This initiative was tasked with exploring various legal technology topics. The project provided research and thought leadership aimed at promoting and facilitating modern methods.
The DIFC Courts used the Courts of the Future to consolidate their significant court technology initiatives. This consolidation facilitates the pooling of talent and resources from global partners and experts in law, technology, and business, all working together to assist court systems in adapting to and expanding new technologies.
Final Words
The DIFC Digital Economy Court reminds us of the dynamic shifts in the legal landscape where parties now form contracts, interact, and conduct business in the UAE, locally and internationally. This division is specifically tasked with adjudicating claims related to the digital economy.
