Intelligent SME.tech Issue 11 | Page 34

// EXPERT PROFILE //

The legal framework around the use of

E-SIGNATURES IN THE UAE

As more transactions occur online , what are the applicable laws surrounding e-signatures in the UAE . Biancka Gracias , Partner and Head of Start-up and SME Division at ICLO and Hassan Saeed Abaragh , Managing Partner and Head of Arbitration , AI , Robotics and Blockchain at ICLO , explain the legal framework surrounding the use of electronic signatures .

REGULATION HAS NO OPTION BUT TO ATTEMPT TO KEEP UP AS MUCH AS
POSSIBLE WITH THE WAYS
AND MEANS IN WHICH THE TECHNOLOGY EVOLUTION , OR RATHER
REVOLUTION IS OCCURRING .
HE SPACE OF technology

T is fast-paced and its developments in the past decade alone has over exceeded anybody ’ s imagination . Regulation has no option but to attempt to keep up as much as possible with the ways and means in which the technology evolution , or rather revolution is occurring .

In the world of business , technology plays an important role . With exceedingly more transactions occurring online , the validity of these transactions need to not only be secure , but also legally compliant with applicable laws .
In order to understand if e-signatures are valid , it is important to first understand what creates a binding contract in UAE that will lead us to the evolution of electronic transactions and its validity . The UAE Civil Code carves out the essence of what forms a contract ; ‘ A contract is the meeting of an offer issued by one of the contracting parties with the acceptance made by the other party and their concordance in such a manner as to produce their effect on the object of the contract and results in a binding obligation on each party in consideration of the obligation of the other party . A meeting of more than two minds may agree to produce a legal effect .” The Emirate of Dubai was a pioneer in confirming validity of contracting through electronic messaging when it issued an Electronic Transactions and Commerce Law in 2002 .
In 2006 , a federal law was issued concerning electronic transactions and commerce and this law cemented the acceptance of contracts through electronic message through the Emirates . This law permitted the conclusion of contracts between confidential electronic mediums that include two or several electronic information systems . This law defined the electronic signature as : ‘ Any letters , numbers , symbols , voice or processing system in electronic form applied to , incorporated in or logically associated with a data message with the intention of authenticating or approving the same ’. The criteria of electronic signature security includes the provisions that shall apply where , on or before sending a data message or by means of that data message , the originator has requested or has agreed with the addressee that receipt of the data message be acknowledged .
This law also set out what constituted protected electronic signatures and states that ‘ protected electronic signatures are legal in the UAE unless proven otherwise ’.
E-signatures become protected if :
1 . it is attributed only to the person who used it
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