Legal reform in UAE by the issuance of new Electronic Transactions and Trust Service Law

Legal reform in UAE by the issuance of new Electronic Transactions and Trust Service Law

Legal reform in UAE by the issuance of new Electronic Transactions and Trust Service Law

A recent legal reform announced in UAE legalizes digital signatures as part of the Law of Electronic Transactions and Trust Services amendment. Federal Decree by Law No. 46 of 2021 on Electronic Transactions and Trust Services Law issued by repealing the old law existing Federal Law No. 1 of 2006 concerning e-transactions and e-commerce. This law brings a digital transformation in the UAE, which consolidates the UAE's position to become one of the leading countries in providing digital services.

As the law came during the "Year of the 50th", it creates a new stage of the developmental achievements of the United Arab Emirates and accelerates the country's future aspirations for the next fifty years.

The new law gives e-signatures the same weight as handwritten signatures in the digital era. Furthermore, it is not mandatory for a person to be physically present to sign. It also uplifts the legal value of digital signature underpinned by modern technologies. The digital signature will be applicable to several governments, civil and commercial transactions, where transactions have an authenticated framework and trust services.

The regulating authority for this law is Telecommunications and Digital Government Regulatory Authority ("TDRA"), and the authority for trust services would be Federal Authority for Identity and Citizenship. Furthermore, this law will expedite to achieve nation's goals and indicators like:

• Online Services Index (OSI),
• Ease of Doing Business Index,
• Global Entrepreneurship and Development Index,
• Global Competitiveness Index,
• Innovation index.

The Electronic Transactions and Trust Services Law facilitate the acceptance, creation, or maintaining files in electronic records, which includes electronic signatures, electronic seals, electronic time stamps, and electronic registered delivery services. However, the legislation provides a grace period of 12-months to the subjects ensuring that they are compliant.