Federal Decree by Law No. 46 of 2021 on Electronic Transactions and Trust Services (PDF, 4.4 MB, available in Arabic only) replaces the Federal Law No. 1 of 2006 on Electronic Commerce and Transactions.

Objective

The new law aims to

• promote legal confidence in electronic transactions through the provision of trust services
• improve the licensing processes based on new services that support digital transactions and the protect customer rights
• encourage digital transformation, investments and rendering digital services for the public
• reinforce the UAE’s transformation towards a digital economy.

The law regulates the validity of electronic documents and boosts the legal value of digital signature and the level of its security. It provides provisions for eTransactions, the way eDocuments should be stored and saved, and sent and received to be valid. It also sets licensing requirements for trust services providers who are duly licensed to create, validate and preserve eSignatures, eSeals and digital certification.

The law also sets out penalties for breaches by the trust service providers and unlawful disclosure of confidential information.

Regulators of trust services

Telecommunications and Digital Government Regulatory Authority (TDRA) regulates electronic transactions and trust services. TDRA issues licences to trust services providers and defines the rules, procedures and standards related to the electronic identification systems, verification procedures and digital ID, in coordination with entities concerned.

Additionally, Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) issues controls related to trust services that are provided to the government sector.

TDRA provides a list of trust service providers, licensed under the law. Licensed providers will be given a ‘trust mark’ to indicate that their services comply with the law.

Refer to the press releases on the websites of TDRA and WAM, for more information about ‘Electronic Transactions and Trust Services law’.