UAE: Electronic Transactions Law Comes into Effect

The United Arab Emirates (UAE) Electronic Transactions and Trust Services Law entered into force on 2 January 2022, providing legal recognition of electronic or digital signatures, giving them the same weight as handwritten signatures. Digital signatures can now be used in licences, permits or approvals; fee payment in digital form; and in bids and tenders. Electronic signatures will also be recognised in civil and commercial transactions, including notaries public; and real estate transactions such as buying, selling, leasing, and contract modification. The law also provides recognition of electronic seals, time stamps and registered delivery services. Businesses have been given one year to fully comply with the law’s requirements. 

The law will reduce costs for foreign investors because representatives will no longer need to personally appear to sign transactions in banks, courts and institutions. They will also be able to complete government transactions using digital signatures from inside or outside of the UAE, as long the digital identity and trust services systems are acceptable to the UAE.