The UAE's Electronic Transactions and Trust Services Law
Technology, Media & Telecoms Focus
The decree-law aims to promote confidence, encourage and facilitate all manner of electronic transactions, and protect customer rights.
Law Update: Issue 358 - Technology, Media & Telecoms Edition
Zafer Sheikh OghliPartner,Head of Office - Sharjah
The decree-law came into force on 02.01.22.
The Telecommunications and Digital Government Regulatory Authority (TDRA) is the body responsible for licensing and regulation.
Electronic documents are as admissible in evidence as paper documents.
The decree-law aims to promote confidence, encourage and facilitate all manner of electronic transactions, and protect customer rights; keep pace with technological advancements in order to grow electronic transactions across sectors; and consolidate digital transformation, investment, and the development of digital services for the public. The decree-law addresses electronic documents and their evidentiary value, the responsibility of the creator of an electronic document for its content, the need to obtain the consent of the creator of an electronic document in order to use same, and the requirement to save an electronic document in the form in which it was created. The decree-law allows a person to use any form of electronic authentication to authenticate the originator of an electronic document and determine if the content has been changed. Electronic documents must be maintained in accordance with certain requirements.
The decree-law allows contracts in electronic form and gives the recipient the right to consider the electronic document as issued by the originator. The recipient may acknowledge receipt through any conduct by which the originator is notified that the electronic document has been received. If the originator requests an acknowledgement of receipt, receipt shall be deemed to occur when the recipient sends such acknowledgement within a specified period or a reasonable period. The decree-law even states that an electronic document shall not be considered as sent until the originator receives the stipulated acknowledgement.
The decree-law provides that the agreement of the parties shall apply with regard to the time and place of receipt of the electronic document, otherwise other rules would apply, such as where the recipient has designated an information system. In that case, the electronic document is deemed to have been received at the time at which it enters the designated information system of the recipient or otherwise enters into any information system of the recipient. In all cases, an electronic document is deemed to be dispatched at the place where the originator has its place of business and received at the place where the recipient has its place of business or, otherwise, its place of residence.
Article 15 et seq sets the TDRA’s licensing requirements for trust service providers and provides qualified trust services for creating an electronic signature, issuing an authentication certificate for an electronic signature, creating an electronic seal and a certified electronic seal, as well as qualified electronic signature and seal creation services, and conditions under which signatures and seals are considered certified.
The decree-law states that TDRA shall create a list of licensed trust service provides and their services and that the executive regulations shall designate the controls and conditions for inclusion in the UAE Trust List.
Article 28 of the decree-law provides that nothing therein shall require a person to use or accept electronic dealing. However, a person's consent to electronic dealing may be inferred from any conduct indicating such consent.
The decree-law allows a person to use any form of electronic signature or seal.
The digital identity issued by the Federal Authority for Identity and Citizenship has been approved as the means of access to electronic services and transactions provided by government authorities.
The decree-law states that trust service providers shall bear civil liability for any damages incurred by any person as a result of breach of the obligations stipulated in the decree-law, its executive regulations, and decisions issued by TDRA.
The decree-law sets out penalties for breaches, including forging an electronic document, electronic signature, or electronic seal, unlawfully exploiting a qualified trust service, using fraudulent means or assuming a false identity to obtain a qualified trust service, or carrying out an act with intent to commit a crime. Penalties are also prescribed for intentionally disclosing confidential information of a sensitive nature to which one has access and for breaching requirements, submitting inaccurate information, or operating without a license (in the case of a trust office).
The decree-law gives those covered by its provisions one year from its effective date to adjust their positions in line with said provisions. With that, I conclude this overview of the UAE decree-law on electronic transactions & trust services.
For further information,please contact Zafer Sheikh Oghli.
Published in May 2023
