eSignature Legality in the United Arab Emirates (Onshore United Arab Emirates, Abu Dhabi Global Market, and Dubai International Financial Centre)

The information provided below is based on official English translations of the relevant legislation.

E-Signature Legality Summary

Onshore United Arab Emirates (UAE)

The principal law applicable to the use of electronic signatures in onshore UAE is the UAE Electronic Transactions Law and its supporting regulations, i.e. Cabinet Resolution no. 28 of 2023 and Cabinet Resolution no. 8 of 2023 (Executive Regulations). The Law is administered by the Telecommunications and Digital Government Regulatory Authority (TDRA).

The UAE Electronic Transactions Law generally provides that, for documents requiring a signature or seal by law or where a law provides consequences for the failure to sign or seal a document, compliance with such laws shall be considered met by use of electronic signatures and electronic documents. 

A person may use any form of electronic authentication unless otherwise provided by applicable law.

The UAE Electronic Transactions Law expressly provides that, for contracting purposes, offer and acceptance may be expressed electronically, and that a contract shall not lose its validity, evidential weight, or enforceability merely because it is made in electronic form. 

Abu Dhabi Global Market (ADGM)

The ADGM Electronic Transactions Regulations are applicable in the ADGM free zone. 

The Regulations provide that, where an ADGM regulation or a law which applies in the ADGM requires the signature of a person or provides for certain consequences if a document or record is not signed, that requirement is satisfied if an electronic signature is used, unless the ADGM regulation or applicable law expressly prohibits the use of an electronic signature. 

Provided that the electronic signature used meets the requirements under the ADGM Electronic Transactions Regulations, electronic signatures have the same legal effect as handwritten signatures. 

Dubai International Financial Centre (DIFC)

The DIFC free zone has implemented its own electronic transactions law, the DIFC Electronic Transactions Law. 

The Law provides that, where any provision set out in any other DIFC law requires the signature of any person, that provision is satisfied if an electronic signature is used. 

Further, information shall not be denied legal effect, validity or enforceability solely on the ground that it is in the form of an electronic record.

Types of Permitted Electronic Signature

Onshore UAE

The UAE Electronic Transactions Law defines an electronic signature as:

"a signature consisting of letters, numbers, symbols, sound, fingerprint, or an electronic form processing system, attached to, or logically associated with an Electronic Document, verifying the identity of the Signatory and his/her approval of the information contained in such document."

An electronic signature shall be considered valid and enforceable provided it includes: 

1. Using a means of identifying a person and indicating the intention of such person with respect to the information contained in the electronic document; and

2. Such "means" are either (a) qualified for the purpose for which the electronic document is created or sent, or (b) either alone or with any other evidence meet the requirements in (i) above.

The UAE Electronic Transactions Law also introduces the concepts of reliable electronic signatures and qualified electronic signatures. 

• Reliable electronic signatures are those which: 

  • are linked to, and fall under the full and exclusive control of, the signatory;

  • are capable of identifying the signatory;

  • are linked to the signed data in a way that can detect any alteration to such data;

  • are created using technical and security techniques in accordance with the technical requirements specified by the Executive Regulations; and

  • meet all other conditions specified by the Executive Regulations.

• Qualified electronic signatures are reliable electronic signatures which are created by a qualified electronic signature device and which are issued based on a qualified electronic signature authentication certificate, i.e. an authentication document issued by a TDRA-approved qualified trust service provider. 

Qualified electronic signature devices must meet certain requirements of the UAE Electronic Transactions Law which focus on preserving the confidentiality, security and authenticity of the electronic signature produced. 

It is generally understood that the use of a qualified electronic signature establishes compliance with the UAE Electronic Transactions Law, such that the electronically signed document is deemed to satisfy the signature and signing requirements under the laws applicable to the underlying transaction.

ADGM

The ADGM Electronic Transactions Regulations define an electronic signature as:

"an electronic sound, symbol or process attached to or logically associated with an electronic record, which may be used to identify the signatory and to indicate the signatory’s approval of the Information contained in the electronic record."

An electronic signature is "valid" under the ADGM Electronic Transactions Regulations provided that the type of electronic signature used is either "reliable" and appropriate for the purpose for which the electronic record was generated or communicated, in light of all the circumstances, including any relevant agreement between the parties; or proven to have fulfilled such functions by itself or together with further evidence.

An electronic signature is "reliable" if: 

• the signature creation data are, within the context in which they are used, linked to the signatory and to no other person;

• the signature creation data were, at the time of signing, under the control of the signatory and of no other person;

• any alteration to the electronic signature made after the time of signing is detectable; and 

• where a purpose of the legal requirement for a signature is to provide assurance as to the integrity of the information to which it relates, any alteration made to that information after the time of signing is detectable.

As discussed above, only electronic signatures which are "valid" (and, therefore, also "reliable") under the ADGM Electronic Transactions Regulations have the same legal effect as handwritten signatures. Unlike the UAE Electronic Transactions Law, there is no requirement in the ADGM Electronic Transactions Regulations for an electronic signature to be issued by, nor is any elevated status afforded to an electronic signature issued by, a provider approved by the TDRA.

DIFC

The DIFC Electronic Transactions Law defines an electronic signature as:

"an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record." 

The DIFC Electronic Transactions Law provides that an electronic signature is "valid" if it (i) is deemed to identify the relevant person and (ii) indicates the person’s intention with respect to the information contained in the electronic record - provided that the electronic signature used is:

• as reliable as appropriate for the purpose for which the document or record was generated or communicated, in the light of all the circumstances, including any relevant agreement; or

• proven in fact to have fulfilled the functions described, by itself or together with further evidence.

Further, an electronic signature is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable. Additionally, the effect of an electronic signature attributed to a person as required above is determined from the context and surrounding circumstances at the time of its creation, execution, or adoption, including the parties’ agreement, if any, and otherwise as provided by law.

Unlike the UAE Electronic Transactions Law, there is no requirement in the DIFC Electronic Transactions Law for an electronic signature to be issued by, nor is any elevated status afforded to an electronic signature issued by, a provider approved by the TDRA.

Documents That May be Signed Electronically

The Electronic Transactions Laws do not contain any express restrictions against using electronic signatures to execute specific types of documents or transactions. However, handwritten signatures may still be required by government ministries with respect to the execution of forms or documents to be submitted to such ministries. 

As the implementation of the Electronic Transactions Laws is still relatively new, guidance is limited, and, to our knowledge, the Laws have not yet been tested before the courts. Accordingly, caution is recommended before relying on electronic signatures to execute high value or business critical agreements, even if such agreements contain an express acknowledgment and agreement of the parties that electronic execution shall be considered valid and binding.

Further Guidance

Onshore UAE

The issued Executive Regulations set forth licensing procedures and requirements for trust services. 

ADGM

The ADGM Electronic Transactions Regulations expressly provide for cross-border recognition of electronic signatures created, issued, used or performed outside of the ADGM or UAE. 

DIFC

None.

Enforcement Penalties for Non-Compliance

There are no statutory penalties attached to using electronic signatures in the UAE (including ADGM and DIFC). However, the use of electronic signatures which do not meet the regulatory requirements is not enforceable under the relevant laws and may, if questioned, result in the electronically signed documents not being recognized as validly executed.  

Seminal Case Law

With the exception of the ADGM and the DIFC, the UAE does not operate a consolidated system of court reporting, nor does it operate a system of judicial precedent. There are, to our knowledge, no public cases with respect to the Electronic Transactions Laws.