The Republic of Yemen formally integrated digital commerce into its legal system with the passage of Law No. 13 of 2006 on Electronic Transactions. This legislation was a significant step toward aligning Yemen with international standards, specifically the UNCITRAL Model Law on Electronic Commerce.
The primary purpose of the law is to facilitate electronic communications and transactions by ensuring they are legally recognized as equivalent to paper-based transactions. In Yemen, an electronic signature is legally binding and admissible in court, provided it satisfies specific security and authentication criteria. While the implementation has faced practical hurdles due to regional instability, the statutory framework remains the governing authority for digital business in the country.
Legal Framework
A. Law No. 13 of 2006 (Electronic Transactions Law)
This is the primary statute governing the digital landscape in Yemen. It consists of 95 articles divided into several chapters covering electronic records, signatures, and certificates.
Core Pillars of the Law:
i. Legal Recognition: Article 5 states that electronic records and signatures shall not be denied legal effect or enforceability solely on the grounds that they are in electronic form.
ii. Equivalency: An electronic signature is deemed equivalent to a physical signature if it is “reliable.”
iii. Criteria for Reliability: Per Article 18, a signature is reliable if:
- • The signature creation data is linked only to the signatory.
- • The signature creation data was, at the time of signing, under the control of the signatory.
- • Any subsequent alteration to the signature is detectable.
- • Any alteration to the information to which the signature relates is detectable.
B. Regulatory Authority
The Ministry of Telecommunications and Information Technology (MTIT) is the designated body responsible for supervising electronic transaction activities. Their role includes:
- • Granting licenses to Certification Service Providers (CSPs).
- • Establishing the technical standards for encryption and digital authentication.
- • Ensuring the security of the National Root.
C. The Role of the Yemeni Civil Code
While the 2006 law provides the digital structure, the Yemeni Civil Code (Law No. 14 of 2002) remains the foundation for contract law. The Electronic Transactions Law acts as a specialized extension of the Civil Code, meaning that for a digital contract to be valid, it must still meet the general requirements of consent, capacity, and legality of subject matter defined in the Civil Code.
Documents That Can Be Signed Electronically
In Yemen, the law allows for a wide range of commercial and administrative documents to be handled digitally:
i. Commercial Agreements: General sales contracts, service level agreements, and procurement documents between private entities.
ii. Electronic Correspondence: Emails and digital memos that are intended to have legal consequences (e.g., termination notices or offer letters).
iii. Banking Transactions: Under the guidance of the Central Bank of Yemen (CBY), electronic signatures are used for online banking, digital wallets, and inter-bank settlements.
iv. Governmental Tenders: Certain government departments accept digital submissions for public bids, though this varies by department.
v. Consumer Contracts: Terms of service and user agreements for digital platforms and telecommunications services.
Documents That Cannot Be Signed Electronically
Consistent with many jurisdictions in the MENA region, Yemeni law excludes certain sensitive or “formal” transactions from the digital scope. Per Article 3 of Law No. 13, the following cannot be signed electronically:
i. Personal Status Documents: This includes marriage contracts, divorce certificates, and lineage documentation. These must be performed traditionally before a religious or civil registrar.
ii. Real Estate Deeds: Any transaction involving the sale, lease (long-term), or mortgaging of land must be registered in the Land Registry and requires physical presence and wet-ink signatures to prevent fraud and ensure public record accuracy.
iii. Wills and Trusts: The creation or amendment of a will (Wasiyah) or a religious endowment (Waqf) requires specific witnesses and physical signatures under Islamic Sharia principles applied in Yemen.
iv. Power of Attorney: General or special powers of attorney intended for use in court or real estate transactions must usually be authenticated by a Notary Public in person.
v. Negotiable Instruments (Limited): While the law discusses electronic checks, in practice, the Yemeni judiciary still requires physical Promissory Notes for summary proceedings.
Notable Changes and Challenges
1. Shift Towards E-Payment Systems
Despite the conflict in Yemen, there has been a notable surge in the use of electronic money. The Central Bank of Yemen in Aden and Sana’a have both issued regulations concerning “Electronic Money Services.” This has forced a practical reliance on electronic signatures (often in the form of PINs or biometric data) for financial disbursements, particularly for humanitarian aid and salary payments.
2. Conflict-Driven Legal Divergence
A significant challenge in the current Yemeni landscape is the dual administration. There are effectively two sets of authorities (Sana’a and Aden) overseeing telecommunications and banking. While both operate under Law No. 13 of 2006, the practical certification of digital signatures and the licensing of providers can differ depending on which authority a business is interacting with.
3. Evidentiary Weight in Litigation
There has been a gradual shift in the Yemeni judiciary’s receptiveness to digital evidence. In recent commercial disputes, courts have begun to accept WhatsApp messages and authenticated emails as “secondary evidence” or “circumstantial evidence,” even if they do not meet the full “Reliable Signature” criteria of Law No. 13.
Practical Considerations for Implementation
For a digital signature to be fully enforceable in Yemen:
i. Mutual Consent: Both parties must explicitly or implicitly agree to conduct the transaction electronically.
ii. Integrity: The system used must be able to prove that the document has not been tampered with since the signature was applied.
iii. Storage: Electronic records must be stored in a way that they remain accessible for future reference.
Conclusion
Yemen possesses a robust legal foundation for electronic signatures through Law No. 13 of 2006. While the “Certified Digital Signature” remains the gold standard for legal security, simple electronic signatures are increasingly used in the daily commercial life of the country. For high-value transactions, parties are advised to use encryption methods that allow for the detection of any subsequent changes to the document, ensuring compliance with the “Reliability” standards of Yemeni law.
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 about any of the information on this site, you should consult with a legal practitioner in your area.
References
1. Republic of Yemen, Law No. 13 of 2006 regarding Electronic Transactions.
2. Republic of Yemen, Law No. 14 of 2002 (The Civil Code).
3. Republic of Yemen, Law No. 21 of 1992 (The Evidence Law) and its amendments.
4. Central Bank of Yemen Circulars (2020-2024) regarding Electronic Money and Digital Payment Services.
5. Ministry of Telecommunications and Information Technology (MTIT): Guidelines on Data Security and Digital Certificates.
