The Sultanate of Oman has steadily enhanced its legislative infrastructure to support its national digital transformation agenda, Oman Vision 2040. At the core of this effort is the Electronic Transactions Law, which provides comprehensive legal validity and enforceability for electronic signatures (e-signatures).
Oman’s legal model for e-signatures operates on the principle of technological neutrality and functional equivalence, meaning a digital signature is legally equivalent to a wet-ink signature, provided it meets certain reliability criteria. The recent legislative updates have streamlined the law, enhanced regulatory oversight, and introduced a tiered system for electronic signatures, offering businesses and individuals clear guidelines for conducting secure and legally sound electronic transactions.
The Legal Framework
The primary law governing the use of e-signatures and electronic records in Oman is the Electronic Transactions Law (Royal Decree No. 39/2025), which recently repealed and replaced the earlier Royal Decree No. 69/2008. This new law modernizes the framework and aligns it further with international best practices.
Core Principles
1. Legal Validity and Non-Discrimination: A contract, record, or transaction cannot be denied validity, enforceability, or legal effect solely because it is in an electronic form or was concluded using electronic messages (Article 7 of the 2008 Law, principles maintained in the 2025 Law).
2. Consent: Electronic transactions are generally applicable to parties who agree to conduct their dealings electronically. For the Government, its consent to electronic dealing must be given expressly in writing.
The Three Tiers of Electronic Signatures
The 2025 Law introduces clearer distinctions between different types of e-signatures, which is a key modernizing change:
| Signature Type | Reliability and Evidential Weight | Key Characteristics |
| Simple Electronic Signature (SES) | Evidential Value (Lower Weight). The signing party may need to prove the reliability and attribution in court. | Any electronic data used to sign (e.g., a scanned image, a typed name in an email, or clicking “I Agree”). |
| Advanced Electronic Signature (AES) | Enhanced Evidential Value. Offers stronger legal reliability through technical means. | Uniquely linked to the signatory, capable of identifying the signatory, created using means under the signatory’s sole control, and linked to the data in a way that makes subsequent changes detectable. |
| Qualified Electronic Signature (QES) | Highest Legal Weight. Presumed reliable and legally equivalent to a handwritten signature. | An Advanced Electronic Signature that is created by a qualified signature creation device (like a secure token or smart card) and is backed by a qualified electronic authentication certificate issued by a licensed Trust Service Provider (TSP). |
Regulatory Authority
A notable change in the 2025 Law is the shift in regulatory oversight from the Information Technology Authority (ITA) to the Ministry of Transport, Communications, and Information Technology (MTCIT). The MTCIT is now responsible for issuing the executive regulations, licensing Trust Service Providers (TSPs), and overseeing the implementation of the law.
Documents that Can Be Signed Electronically
The vast majority of commercial, civil, and administrative documents can be signed electronically, especially those using Advanced or Qualified Electronic Signatures. These include, but are not limited to:
1. Commercial Agreements: Non-disclosure agreements (NDAs), commercial contracts, purchase and procurement orders, sales and distribution agreements, and trading documents.
2. Employment Documents: Employment contracts, HR policies, disciplinary notices, and standard employee agreements.
3. Real Estate Leases: Both residential and commercial lease agreements.
4. Internal Corporate Documents: Board minutes, corporate resolutions, internal approvals, and inter-company agreements.
5. Financial Documents (Subject to CBO rules): Bank account opening forms (often integrated with digital identity systems), loan applications, and general transactional documents.
6. Government Documents: E-signatures are permitted for government transactions, such as applications for licenses and permits, provided the specific government entity has given express consent for electronic dealing.
Exclusions: Documents that Cannot Be Signed Electronically
Despite the broad applicability of the Electronic Transactions Law, a few specific categories of documents are excluded and still require a traditional wet-ink signature or a formal procedure before an official authority, such as a Notary Public. These exclusions typically relate to matters of public interest, personal status, or documents that convey title:
1. Personal Status and Family Law: Transactions and matters relating to the Civil Status Law, including:
- Marriage and Divorce.
- Wills, Codicils, and Trusts.
- Endowments (Waqf).
2. Instruments Requiring Formal Notarization or Attestation: Any document that the law explicitly requires to be ratified by a Notary Public or witnessed by a specific Government Official (such as an official from the Ministry of Housing and Urban Planning or the Ministry of Commerce, Industry and Investment Promotion). Key examples include:
- Power of Attorney (PoA) Documents.
- Instruments affecting any dealings with Real Property (e.g., the transfer or sale of land title deeds, and legal mortgages over land).
- Formation documents of certain companies (e.g., the initial Articles of Association).
3. Court-Related Procedures: The Law does not apply to issuing court proceedings, judicial announcements, summons, search warrants, arrest warrants, and judicial decrees.
Notable Changes in the Law (Royal Decree No. 39/2025)
The new Electronic Transactions Law of 2025 introduced several critical updates to strengthen Oman’s digital governance:
1. Expanded Scope and Tiered Signatures: The Law now explicitly defines and distinguishes between Simple, Advanced, and Qualified Electronic Signatures, bringing Oman’s legal standards closer to the globally recognized European Union’s eIDAS Regulation model. This provides greater legal certainty for high-value transactions.
2. Focus on Trust Services: The concept of “Certification Services” has been replaced with the broader term “Trust Services.” This encompasses not only the issuance of digital certificates but also electronic seals, electronic identity verification, and other secure digital services, all subject to licensing by the MTCIT.
3. Enhanced Penalties: The new law significantly increased the fines and potential imprisonment terms for violations, such as providing unlicensed trust services, unauthorized data use, or certificate forgery. This underlines the government’s commitment to ensuring a secure and trusted digital environment.
4. Regulatory Authority Shift: The transfer of regulatory authority to the MTCIT from the former ITA centralizes digital policy and oversight, which is expected to facilitate the development of the necessary executive regulations to implement the new law effectively.
5. Central Bank Independence Clause: The law explicitly clarifies that its provisions do not prejudice the independence of the Central Bank of Oman (CBO) in regulating banks and financial institutions. This means the CBO retains the power to impose specific, stringent electronic security and transaction rules on the financial sector.
The updated framework solidifies Oman’s position as a forward-thinking economy, leveraging digital security and legal clarity to drive investment and innovation.
Disclaimer
The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so Flowmono cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions.
References
1. Oman Vision 2040: The national plan that provides the strategic context for digital transformation and legislative modernization.
2. Electronic Transactions Law (Royal Decree No. 39/2025): Sultanate of Oman (as published in the Official Gazette)
3. Electronic Transactions Law (Royal Decree No. 69/2008)
4. Central Bank of Oman (CBO) Banking Law (Royal Decree No. 2/2025)
