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eSignature Legality Guide

eSignature Legality in The United Arab Emirates (Onshore United Arab Emirates and Dubai International Financial Centre)

Electronic signatures are legally recognized in the UAE and are provided for under the Federal Decree by Law No. 46 of 2021 on Electronic Transactions and Trust Services (UAE Electronic Transactions Law), ADGM Electronic Transactions Regulations 2021 (ADGM Electronic Transactions Regulations), and DIFC Law No. 2 of 2017 (DIFC Electronic Transactions Law) (collectively, the "Electronic Transactions Laws").

E-Signature Legality Summary

Onshore UAE

The principal law applicable to the use of electronic signatures in onshore UAE is the UAE Electronic Transactions Law and its supporting regulations. 

Qualification Statements: 

  • The UAE Electronic Transactions Law was published in Arabic on 20 September 2021 and there is no official English translation available at this time - publicly available translations provide for different translations of key terms. Additionally, Cabinet Resolution no. (28) of 2023 (Executive Regulations) supporting the UAE Electronic Transactions Law was published in Arabic on 14 April 2023. 

  • Per Article 8 of Cabinet Resolution number 8 of 2023, the "period for regularization" for the new UAE Electronic Transactions Law has been extended until 2 January 2024. Therefore, it is anticipated that the Telecommunications and Digital Government Regulatory Authority (TDRA) will issue official English translations of the UAE Electronic Transactions Law and the Executive Regulations in due course.

  • DocuSign intends to update this Guide after publication by the TDRA of official English translations of the UAE Electronic Transaction Law and the Executive Regulations. The information provided below is based upon DocuSign's best understanding of the available English translations of the UAE Transactions Law and the Executive Regulations.

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 may be achieved through the use of electronic signatures and electronic documents provided that the following requirements are met: 

  1. Use of 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" must either "be qualified for the purpose for which the Electronic Document is created or sent," or meet the requirements of 1 above "either alone or with any other evidence."

Any person may use any form of electronic authentication unless the law provides otherwise.

The UAE Electronic Transactions Law also 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. 

ADGM

The ADGM Electronic Transactions Regulations are applicable in the ADGM free zone and 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 is "valid" under the ADGM Electronic Transactions Regulations, electronic signatures have the same legal effect as handwritten signatures. 

DIFC

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

Notable Changes in E-Signature Law Since 2020

Notable changes in applicable e-signature law since 2020 include:

  • The replacement of Federal Law No. 1 of 2006 pm 20 September 2021 concerning e-transactions and e-commerce with the UAE Electronic Transactions Law; 

  • The abrogation of the Emirate of Dubai’s electronic signatures law (Dubai Law No. 2 of 2002 on electronic transactions and commerce) in connection with the issuance of the UAE Electronic Signatures Law on 20 September 2021; 

  • The introduction of the ADGM Electronic Transactions Regulations 2021 on 28 February 2021 - dedicated regulations in the ADGM free zone applicable to electronic signatures.

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."

The UAE Electronic Transactions Law also introduces concepts of Reliable and Qualified Electronic Signatures. 

  • "Reliable Electronic Signatures" are those which meet the following requirements: 

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

    • capable of identifying the Signatory

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

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

    • any other conditions specified by the Executive Regulations

  • "Qualified Electronic Signatures" are Reliable Electronic Signatures which are created by qualified electronic signature devices and which are issued based on qualified electronic signature authentication certificates. 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. A qualified electronic signature authentication certificate is an electronic signature authentication document issued by a TDRA-approved qualified trust service provider.

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 meet the signature and signing requirements of law applicable to the underlying transaction. It is unclear whether Reliable Electronic Signatures have any elevated status under the UAE Electronic Transactions Law.

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 authorized 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 is deemed to identify the relevant person and to indicate 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 authorized 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. 

Due to the lack of certainty in the Electronic Transaction Laws at this time, 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

As noted above, the UAE Electronic Signatures Law remains subject to the Executive Regulations, and both have been issued in Arabic. This guidance will be updated after official English translations are published. 

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 are not enforceable under the relevant laws may result in the electronically signed documents not being recognized as being 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. 

Publicly Accessible Hyperlink(s) to Laws/Regulations Discussed Above 

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so DocuSign cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.

Last updated: May 3, 2023

Resources

  • Electronic Commerce Law (2006)

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