DIFC Courts launch specialised rules for world’s first Digital Economy Court
Modern digital economy, such as cryptocurrencies and blockchain, is very different and has led to specialised recruitment and new set of rules
A well-developed legal framework is key to boosting economic development
by Justice Omar Al Mheiri
The UAE’s commitment to providing a highly competitive business environment is essential to its long-term vision of economic diversification
A country’s legal sector plays a crucial role in determining economic performance. It promotes the establishment of economic relationships, bringing positive impacts on business activity, innovation, and the development of financial markets, thereby boosting GDP.
This is especially true for dynamic economies, such as the UAE, which are witnessing rapid economic development and need the support of a strong, agile legal sector to help keep pace with this transformation.
The UAE’s commitment to providing a highly competitive business environment is essential to its long-term vision of economic diversification. The ability of its judicial systems to support and protect the businesses that operate here will prove crucial to the nation’s long-term objective to attract and retain foreign investment.
The country’s effort in efficiently managing the pandemic, and continued investment in innovation, research and development has been successful in earning the confidence of global investors. Dubai recently achieved the top global ranking in attracting foreign direct investment (FDI) in 2021, with a record number of 418 greenfield FDI projects.
A well-run and diverse judiciary is key to continue attracting foreign investors and has proven to have a very real impact on economic growth. Investors want to be clear, among other things, about market access; the requirements for business operation; their rights and obligations; and the accessibility and enforcement of dispute resolution.
Markets with effective commercial justice regimes are estimated to grow half a percentage point faster than those without. Research has shown that the better the service a court offers, the higher the chance of the parties settling, which must be the driving preference behind any dispute resolution mechanism. The perception of justice in the market has as much to do with how people view the journey through the courts, as the decision at the end.