Are Digital Signatures Enforceable in the United Arab Emirates?
What are the differences between digital and e-signatures?
Legality and enforceability of E-signatures in the United Arab Emirates:
The law which governs the legality of E-signatures in the UAE is 'UAE Electronic Transactions Law'. In accordance with the Law, E-signatures are valid, legal and recognized in the UAE.
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Is there a difference between E-signatures and Digital Signatures?
We often use the terms E-signatures and Digital Signatures interchangeably without understanding the difference between the two concepts. E-signature is an umbrella concept outlining any electronic process that indicates acceptance or approval of an agreement. Typically, E-signature solutions use common electronic authentication methods to verify signer identity such as e-mail address, ID, phone PIN. Whereas Digital signatures use certificate-based digital identifiers, and such signatures are handwritten signatures that are unique to each signer. It is safe to conclude that all Digital Signatures are electronic in nature but not all E-signatures are digital.
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What constitutes an E-signatures in the UAE?
The Law distinguishes between “Electronic Signature” and “Secure Electronic Signatures” in the UAE.
The Law defines an “Electronic Signature” as “any letters, numbers, symbols, voice or processing system in electronic form applied to, incorporated in, or logically associated with an electronic message with the intention of authenticating or approving the same”.
The Law defines “Secure Electronic Signatures” as an electronic signature that, through the application of a prescribed or commercially reasonable secure authentication procedure, to which the parties agree to, can be verified that an electronic signature was, at the time it was made:
- unique to the person using it;
- capable of identifying such person;
- was, at the time of signing, under the sole control of the signatory in terms of the creation data and the means used;
- linked to the electronic record to which it relates in a manner which provides reliable assurance as to the integrity of the signature such that if the record was changed the electronic signature would be invalidated.
The Law does not require that parties use a Secure Electronic Signature for any transactions. As long as it is not prohibited by law, parties can, in principle, agree to use either an Electronic Signature or a Secure Electronic Signature.
UAE Court’s view on E-signatures:
The Law does not require that parties use a Secure Electronic Signature for any transactions. As long as it is not prohibited by law, parties can, in principle, agree to use either an Electronic Signature or a Secure Electronic Signature.
To which documents in the UAE E-signatures do not apply?
- Title deeds of real estate;
- Transactions and issues relating to personal law such as marriage, divorce and wills;
- Bonds in circulation/Negotiable Instruments;
- Transactions concerning the sale and purchase of real estate, its disposition and rental for periods in excess of ten years and the registration of any other rights related to it;
- Any other documents or transactions to be excluded by a special legal term;
- Any document required by law to be executed before a Notary Public.
Conclusion:
In a nutshell, Secure Electronic Signatures are the most legally protected type of signatures under the Law. It does not mean that simple Electronic Signatures are not reliable. It simply means the party who is relying on the Electronic Signature assumes the risk. The reliance is required to be reasonable in nature. If the validity of such Electronic Signature is challenged in the court of law, the party who is relying on that signature would need to establish it is reasonable for them to have done so in that particular case.
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