eSignature Legality in Saudi Arabia

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.

Types of Permitted Electronic Signature

An electronic signature is defined in the Electronic Transactions Law as “Electronic data listed in or added to or logically linked to an electronic transaction and used to prove the identity of the signatory, show his approval of the electronic transaction, and uncover any amendment to this transaction after the signing thereof.”

Additionally, Saudi Arabia has begun the roll-out of “digital certification,” which is a type of certification process provided by licensed digital certification providers. Digital certification (though not required for entry into a contract) makes digital signatures more difficult to legally challenge.

Document Types That May be Signed Electronically

Parties can use electronic signatures 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 discretionary power. Possible use cases include agreements that do not require notarization.

Further Guidance

Use cases typically not appropriate for electronic signatures are those 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. Documents typically requiring notarization include:

• Real property title deed transfers

• Powers of attorney

• Articles of Association of a company with limited liability and any amendments thereof

• Documentation relating to civil status

Seminal Court Cases

None.