eSignature Legality in Saudi Arabia

Traditional Islamic Law – Shariah

eSignature Legality Summary

Under Saudi law, a written signature is not necessarily required for a valid contract - contracts are generally valid if legally competent parties reach an agreement, whether they agree verbally, electronically or in a physical paper document. Article 5 of the Electronic Transactions Law specifically confirms that contracts cannot be denied enforceability merely because they are concluded electronically. To prove a valid contract, parties sometimes have to present evidence in court. It may be difficult to prove verbal contracts or electronic contracts formed by email or simple click-through arrangements.

Use Cases for Standard Electronic Signature (SES)

Use cases where an SES is typically appropriate include:

Parties can use DocuSign to create valid contracts and documents of any kind provided they are not subject to a specific statutory form requirement. Such contracts if contested will be subject to the judge’s vast discretionary power. Possible use cases include agreements that do not require notarization.

Use Cases That Are Not Typically Appropriate for Electronic Signatures or Digital Transaction Management

Use cases that are specifically barred from digital or electronic processes or that include explicit requirements, such as handwritten (e.g. wet ink) signatures or formal notarial process that are not usually compatible with electronic signatures or digital transaction management.

• Notarization – real property title deed transfer

• Notarization – granting a power of attorney

• Notarization – signing the Articles of Association of a company with limited liability and any amendments thereof